Kenyan shilling falls after Supreme Court nullifies election

The Kenyan shilling on Friday slipped to 103.2 against the dollar after the Supreme Court nullified the August 8 presidential election.

Commercial banks quoted the shilling at 103.20/40 per dollar, compared with 102.75/95 at Thursday’s close.

Trading at the Nairobi Securities Exchange stopped temporarily because of panicky transactions, especially by foreign investors.

“Markets hate uncertainty and clearly the Supreme Court’s decision has injected an unprecedented amount of uncertainty into the equation.

"The markets have a clear preference for the largely free market economics of President Kenyatta and hence the sharp and precipitous drop,” Aly-Khan Satchu, the chief executive of Rich Management, an investment advisory firm is quoted by Business Daily.

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The Supreme Court on Friday morning ordered fresh elections within 60 days after declaring President Uhuru Kenyatta’s election win invalid due to “irregularities and illegalities” committed by the country’s electoral body.