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Economy In Kenya Shivers As Politics Take Center Stage Again

The Kenya Supreme Court ruling that nullified President Uhuru Kenyatta’s re-election came with a negative impact on businesses that were emerging from a slow ward down.

The matatu industry was the first to claim making a Sh75 million (about $729.000) loss everyday nationwide.

The National Chamber of Commerce and Industry said the country was losing billions daily due to the uncertainty.
The Nairobi Securities Exchange NSE reportedly plummeted Sh92 billion ( about $8.3m) by close of that Friday as investors scampered to cover their positions.

In comparison, the bourse lost Sh40 billion ( about $3.8m) after violence erupted during the disputed 2007 General Election.


On Thursday, though, investor wealth at the exchange rose above the Sh2.4 trillion mark for the first time in a week as the NSE continued to recover from last week’s slide on the back of political bickering.

In a review of the market reaction by Business daily, Stanbic Bank regional economist Jibran Qureishi told the Sunday Nation that investors’ initial reaction to the news was a clear indication of their fretting over re-emergence of election spending and what this would mean to fiscal consolidation highlighted in this year’s budget.

“On the other hand, the move by the court reflects a maturing democracy and strengthening independent institutions, and we should not discount this factor,” said Qureishi.

However, a number of business players have weighed in on the impact of renewed political duels between Nasa and Jubilee, which have heightened tension in the east African country.


Written by How Africa

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