Director at Tax Justice Network Alvin Mosioma said with the ongoing anxiety about the release of the election results, most investors have remained on the sidelines hence reducing the demand for the dollar which is the major foreign currency.
He said most of the traders especially those who import goods, had also prepared early enough by purchasing enough stocks due to uncertainty before the elections.
“Every trader is cautious and as you can see and as much as activities have slowly started in major cities, most of people are still relaxed as they wait on the results. The investors are in what I would call ‘wait and see attitude,” Mosioma told Capital FM Business on Thursday.
“In the long term, if the elections end peacefully, we also expect more visits by foreign investors and tourists who will come with more foreign currency.” he added.
For the last two weeks, the shilling has unexpectedly remained strong within the 85/87 levels despite the heightened electoral activity.
“There has also been a lot of talk about delay in clearing goods at the port of Mombasa. So that would also contribute to businessmen and women holding back until after the election results are announced by the Independent Electoral and Boundaries Commission (IEBC).”
On Thursday, dealers at the Commercial Bank of Africa (CBA) said the shilling was trading at 86.25 buying and 86.65 selling to the dollar.
“The shilling showed less movement on the back of heightened anxiety brought about by the delayed release of results by IEBC,” the dealer said, “This is expected to continue until there is a clear lead of the contestants.”