Wall Street Banks Flag Risks for Kenya’s Shilling as War Rages On

Kenya’s shilling is among the most vulnerable currencies in Africa, according to strategists at major banks, who predict further weakness as elevated oil prices pile pressure on the economy.

Strategists at Citigroup Inc., Standard Chartered Plc. and Societe Generale SA have flagged the shilling’s frailty, with Standard Chartered saying the central bank may have to allow the exchange rate to weaken to 132 shillings per dollar by year end, according to Razia Khan, head of research for Africa and the Middle East. The shilling gained less than 0.1% on Tuesday to 129.1 per dollar.