The shilling touched an eight-month high of 85 units to the dollar, raising hopes of a decline in the cost of living.

Currency traders attributed the rise to the sustained tightening of liquidity by the Central Bank of Kenya (CBK), which lifted the shilling for the third day in a row.

The CBK was in the market for Sh4 billion ($45.8 million) through re-purchase agreements.

The regulator, however, only managed to get Sh250 million out of the amount it was seeking, unlike the two previous days when it mopped up Sh6 billion from the market.

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