Shilling Slumps

June 14 (Bloomberg) -- Kenya’s shilling depreciated the most in a week after an explosion at a rally yesterday to oppose a new constitution killed six people, raising concern about political stability.

The currency of East Africa’s biggest economy weakened as much as 0.7 percent to 81.18 versus the dollar and traded 0.6 percent down at 81.10 as of 11:03 a.m. in the capital, Nairobi. Kenya’s All-Share Index retreated as much as 0.5 percent before increasing less than 0.1 percent to 73.77.

At least 75 people were injured in the rally in a park in downtown Nairobi, Kenya Television News reported, citing hospital workers. The rally was led by religious leaders and politicians who oppose the constitution that is scheduled to be put to a national referendum on Aug. 4.

“We expected there would be some reaction to the bad news of the explosion,” Steve Lagat, a dealer at CCFC Stanbic Bank Ltd., said by phone from Nairobi today.

Protesters disagree with a clause that stipulates women can terminate pregnancies that pose a risk to their health and another, which is also in the current constitution, that recognizes Islamic law.

The adoption of a new constitution was a key element of a power-sharing accord decided in 2008 to end post-election violence that killed 1,500 Kenyans and displaced another 300,000. It is meant to replace the current charter dating back to the country’s independence from Britain in 1963, in which the president holds most power. The draft aims to decentralize government decision-making and curb abuses of authority by the state.