The shilling, fresh from a sustained rally against the US dollar, is anticipated to face renewed downward pressure as the annual dividend payout season for listed firms approaches, traders said yesterday.
Demand for the greenback from companies with foreign shareholders seeking to repatriate dividends is expected to intensify in the coming weeks, adding to existing dollar demand from energy and manufacturing importers.
A slew of prominent Kenyan companies, as indicated by announcements from the Central Depository and Settlement Corporation (CDSC), have declared their dividend payouts and set crucial book closure dates for 2025.
This mid-year surge in dollar demand by these firms traditionally exerts pressure on the local currency.
