UPDATE 1-Kenya shilling slides on Dubai debt concerns

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NAIROBI, Nov 27 (Reuters) - The Kenyan shilling KES= weakened sharply on Friday in a fall traders said was triggered by banks covering short positions and offshore selling of the Kenyan currency due to concerns over Dubai's debt problems.

At 0920 GMT commercial banks quoted the shilling at 75.20/40 compared with Thursday's close of 74.35/45. It had earlier slid to 75.30/50 -- a level last seen in early November.

"It (the fall) is generally across emerging markets due to debt restructuring in Dubai. Everybody has been covering their positions," Ignatius Chicha, treasurer at Citibank.

Traders said there was plenty of demand for the U.S. currency on the interbank.

"The activity has basically been banks closing their short positions, especially the offshore banks, and I think this was triggered by the story about the Dubai problem ... debt crisis," said Jeremiah Kendagor, head of foreign exchange trading at Kenya Commercial Bank. (Reporting by George Obulutsa and Duncan Miriri; Editing by Andy Bruce) ((Email: nairobi.newsroom@reuters.com +254 20 2224 717))# (For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/)