TABJ – Nov 18 - Kenya’s shilling, the world’s best performer against the dollar this month, strengthened 0.5 per cent to 91.98 in Nairobi and is set for its fourth weekly gain.

“The shilling has gained against the dollar on low demand, as businesses settle their tax bills,” Jeremiah Kendagor—acting head of trading at Nairobi-based Kenya Commercial Bank Ltd.—said.

Kenyan businesses are due to pay value-added tax, withholding tax, aviation fees and excise duty by November 20.

The country’s monetary policy committee has increased the key lending rate by 5.5 per cent to a record 16.5 per cent, in an attempt to contain inflation accelerated by high fuel prices and the worst regional famine in 60 years.

Dickson Musoni—a currency trader at Kenya Commercial Bank’s Ugandan unit—said: “The shilling has gained on low dollar demand, due to tight money supply, which has seen interbank borrowing rate at 30 per cent.”