NAIROBI (Reuters) - Kenya's shilling fell nearly 1 percent against the dollar on Wednesday due to concerns that delays in the announcement of presidential election results would prompt rivals to challenge the outcome.
Commercial banks quoted the shilling of east Africa's biggest economy at 86.50/70 to the dollar, 0.9 percent weaker than 85.75/95 at Tuesday's close. Thomson Reuters data showed a settled price of 86.50 at 0638 GMT.
The shilling had initially firmed on Tuesday to an 18-week high to 85.10 per dollar after Monday's voting passed off peacefully, but gave up those gains when it became clear the result would not emerge swiftly.
"We thought we would have the results within 48 hours," said Duncan Kinuthia, head of trading at Commercial Bank of Africa said. "In the absence of any news, people are not going to sit pretty."
Counting since Monday's vote has been slow, and a new electronic voter system has been plagued by hitches, leading to complaints by political parties and anxiety among voters fearful that a flawed process could lead to another violent dispute.
Provisional results show Uhuru Kenyatta, a politician wanted for crimes against humanity in The Hague over post-poll violence that left more than 1,200 people dead, was ahead of Prime Minister Raila Odinga.
But almost 60 percent of polling stations have yet to report.
"There is a bit of caution due to the delay in the release of results," said Chris Muiga, a senior trader at Kenya Commercial Bank. "The shilling will not be stable until we have a clear picture."