The Kenyan Shilling has advanced against the US Dollar to 85.53 per Dollar and is heading towards its highest level since March the 5th after the presidential elections in East Africa’s biggest economy proved to be peaceful despite security concerns.
The vote which was held on March the 4th resulted in Uhuru Kenyatta winning by claiming just over 50% ofthe votes. Kenyatta is preparing to stand trial at the International criminal court to refute claims that he planned and funded violence after the bungled elections in 2007. Outgoing Prime Minister Raila Odinga won 43.3% of the vote.
Worries that violence could be sparked were high for the election as in 2007 over 1,100 people died in ethnic clashes after Odinga disputed the outcome. Fears of trouble were high this time round too as spates of attacks had been carried in the run up to Election Day.
“The shilling has gained against the dollar, reflecting the dividend of peaceful elections,” Raphael Agung, a senior trader at Nairobi-based Commercial Bank of Africa Ltd., said by phone. “The markets will recalibrate based on litigation risks associated with the plan to contest the presidential results at the Supreme Court”.
Uncertainty could lie ahead however as Odinga has challenged the result, blaming his defeat on President Mwai Kibaki and has is set to challenge the outcome in Kenya’s Supreme Court. Despite challenging the result Odinga called for no violence saying that it could destroy the country and would not serve anyone’s interest.
“In the medium term the markets will remain choppy as the Supreme Court decides on the case,” Agung said.
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