NAIROBI, Aug 13 (Reuters) – Kenya’s shilling inched higher against the U.S. dollar on Tuesday, lifted by dollar inflows from remittances and offshore investors attracted by an upcoming infrastructure bond auction, traders said.

At 0910 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, compared with 128.75/129.75 at the close of Monday’s session.

The central bank will sell 50 billion Kenyan shillings of infrastructure bonds on Wednesday.

“We see … infrastructure bonds tomorrow so there could be some foreign investors attracted,” one trader said, adding that the auction might not be as highly subscribed as in February because Kenya’s sovereign credit ratings had been downgraded recently.

Moody’s and Fitch downgraded Kenya’s ratings deeper into “junk” territory after the government backtracked on highly contested tax increases following mass protests. S&P Global is scheduled to review Kenya’s ratings on Aug. 23.

(Reporting by Hereward Holland; Editing by Alexander Winning)