UPDATE 1-Kenyan shilling hits new record low vs dlr

* Shilling seen tumbling past 93.00 vs dlr

* Stocks fall for a third straight day

* Bond volumes down

(Adds markets close, quotes)

By Kevin Mwanza

NAIROBI, Aug 5 (Reuters) - The Kenyan shilling fell
for a sixth straight trading day on Friday to strike a new
record low of 92.95 against the dollar, weighed down by importer
demand and clients' panic buying of the U.S. currency, traders
said.

News that an industry group had cut its forecast for Kenya's
horticultural exports this year, a key source of foreign
exchange, also dampened the shilling, they said.

The shilling has lost 15 percent against the dollar in the
year to date.

At the close of trade at 1300 GMT, commercial banks quoted
the shilling at 92.80/90 against the dollar, weaker than
Thursday's close of 92.20/40.

"Corporate demand has weighed and a bit of panic buying from
people who hoped it would become stronger but with the way it's
sliding they have decided to cover their shorts," said Duncan
Kinuthia, head of trading at Commercial Bank of Africa.

"Nothing is supporting the local unit right now. Even news
from the horticulture sector shows a dip of almost 50 percent,
so in terms of inflows we are impacted. We are not expecting
good inflows."

Kenya cut its growth forecast for horticulture export
earnings this year to 8 percent from 15 percent due to the debt
crisis in Europe and the United States.

"We are in uncharted territory and volatility is expected to
be high. For the time being it doesn't look very rosy for the
shilling," said Kinuthia.

Traders said they expected the shilling to cross the 93.00
psychological level in the coming week if dollar demand
pressures persisted.

"Locally we've seen demand coming in from the energy sector.
Coupled with global strengthening of the dollar, it will keep
the shilling on the back foot," said Sameer Lagadia, head of
trading at Diamond Trust Bank.

"Ninety three does look like the next resistance for the
dollar."

On the Nairobi Stock Exchange, the benchmark NSE-20 Share
Index extended losses for a third straight day, falling
0.62 percent to 3,721.53 points and still hovering at a 17-month
low.

Traders said stockmarket investors were discouraged by a
rising inflation rate, which hit 15.53 percent in July, a
weakening shilling, and the slide in global stocks although some
said the global rout in stocks could enhance Africa as a
relatively safe haven.

"The market is bearish and even company announcements do not
seem to have an impact in the market," said Renaldo D'souza, an
analyst at Genghis Capital.

"The global stocks plunge could go either way. Companies
listed there also invest in the stock here, which means they
could reduce their investment. On the flip side, they could look
at Africa as an alternative investment avenue."

Kenya's biggest telecom operator, Safaricom , led
the losses, down 4.05 percent to 3.55 shillings, while Equity
Bank , the biggest bank in customer terms, fell 3.26
percent to 22.25 shillings.

Also on the bourse, corporate and government bonds worth
3.116 billion shillings ($33.8 million) were traded, down from
3.81 billion shillings on Thursday.
KES= KES1=........................Shilling spot rates
KESF= 0#KESF=..................Shilling forward rates
EURKES= KESX= KESX1=....................Cross rates
KES=KE...............................Local contributors
CBKINDEX....................Central Bank of Kenya Index
KE/DEBT..................Kenyan Bonds contributor pages
CBK03 CBK06 KE3MTB=............Treasury bill yields
CBK04...............Central bank open market operations
CBK07......................Horizontal repo transactions
KEIBR=, CBK02.............Daily interbank lending rate
0#KETSYSTR=..........................Kenya Bond pricing
ECONAFRICA...............Real time Africa economic data
<ECI & AFR> ........................African economic news
SPEED GUIDES: REUTERS KES/1 KE/DEBT MONEY KE/EQUITY
($1 = 92.225 Kenyan Shillings)

(Editing by George Obulutsa; Editing by Susan Fenton)