Kenyan stocks are expected to move sideways this week, but traders say the market will be watching for any negative impact on Kenya Airways after the national carrier suspended flights to Europe.

The airline has canceled flights to London, Paris and Amsterdam because of ash from an Icelandic volcano that has grounded planes across Europe.

Kenya Airways falls as low as 56.50 shillings per share on Monday, traders say, a decline of 4.2 percent from Friday's close of 59.00 shillings. It later recovers to close at 58.00 shillings, traders say.

The Nairobi Stock Exchange's 20-share index edges down 0.4 percent to close at 4,095.56 points, while the all share index gives up 0.8 percent to 87.29 points