Kenya has lost Ksh700B over political uncertainty KEPSA

Kenya’s GDP has shed-off 10% over the last four months as a result of the prolonged electioneering period and the political uncertainty ahead of Thursday’s repeat presidential election.

Since January, Kenya has been treated to heightened political activities in the run-up to the August 8 General Election. However, with the nullification of the presidential election and subsequent announcement of fresh polls date, the economy continues to take a beating.

“The private sector, having reviewed the loss has estimated it to be about 10 percent of the GDP, equivalent to Ksh.700 billion just in the last 4 months,” said KEPSA Trustee Patrick Obath.

According to the International Monetary Fund, Kenya’s 2017 GDP is estimated at 7.4 trillion shillings with the business community largely attributing the drop to “a wait and see attitude” adopted by many investors during this period.

However, the political environment deteriorated following opposition-led protests that were characterised by looting and destruction of property in various cities and towns.

According to a KEPSA report on economic impact of elections, sectors hard hit by the uncertainty are tourism that has recorded a 30% decline in bookings in the period under review and the transport sector which is now losing Ksh.75 million daily. Others include wholesale and retail sectors which have been hit in the last three weeks by violent demonstrations as well as the manufacturing sector which has shed off some informal jobs.

The report further indicates that the conference and events sector has also seen cancellation or postponement of major events in the country.

Concerned with the current height of political tension, the business community insists that ultimately the country needs to dialogue in the period after October 26.