Kenya's shilling is down 7% against the dollar this year and has touched a series of new lows. Last week, Kenya's central bank said the revival of interbank foreign exchange trade two weeks earlier - alleviating the shortage of dollars - had smoothed out volatility in the shilling exchange rate. (Reporting by George Obulutsa; Editing by Hugh Lawson)
george.obulutsa.thomsonreuters.com@reuters.net)) NAIROBI, April 5(Reuters) - Kenyan private sector
business activity contracted in March, albeit at slower pace
than a month earlier, hurt by rising prices, a weakening
shilling and a lack of access to dollars, a survey showed on
Wednesday.
The Stanbic Bank Kenya Purchasing Managers' Index (PMI) rose
to 49.2 in March from 46.6 a month earlier, but remained below
the 50 mark denoting growth in business activity.
The survey compilers said 30% of respondents cited
difficulty in getting hold of dollars as well as increased taxes
and higher fuel prices that led to a rise in purchase prices.
"The latest contractions in output and sales were centred on
wholesale and retail companies. By contrast, manufacturing,
agriculture, construction and services recorded expansions,"
Stanbic Bank said in comments accompanying the survey.
Inflation held steady at 9.2% year-on-year in March.
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