The Kenyan shilling edged up slightly against the U.S. dollar on Monday as the Central Bank's Monetary Policy Committee meeting cut its base lending rate to 9.5 percent.

The local currency traded at an average of 101.25 against the dollar, up from 101.30 at the end of last week on Friday.

The Central Bank of Kenya quoted the shilling at 101.27 per dollar as the currency rose from 101.29, where it closed Friday.

Commercial banks in the East African nation, on the other hand, put the currency against the dollar at between 101.20 and 101.40.

Against the British pound, the shilling pushed forward albeit marginally to trade at 141.19 from 141.42 on Friday last week.

Central Bank said it had cut the rate to support economic activity, adding that the foreign exchange market was currently stable, with Kenya's forex reserves hitting an all-time high of 8.83 billion dollars.

The apex bank said the reserve provided an adequate buffer against any foreign exchange market shocks that may affect the shilling.