NAIROBI - Kenya's shilling eased on Wednesday due to demand for dollars from the energy sector that outpaced inflows from remittances, traders said.

At 0900 GMT, commercial banks quoted the shilling at 128.50/70 per dollar, compared with 128.35/55 at Tuesday's close.

In early Wednesday trade, the shilling, which is down 4% so far this year, touched a fresh all-time low of 128.70/90 per dollar before retracing some of its losses, Refinitiv data showed.

Technical analysis of its 14-day and 50-day simple moving averages shows the shilling is expected to weaken further in the near term.

(Reporting by George Obulutsa; Editing by James Macharia Chege)