Both local and international investors are slowing down on decision making with regards to expanding their investments.
Investors are employing a wait and see approach as the ongoing political uncertainty continues to be a cause of concern for them.
Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge however says that the outcome of next month’s presidential election runoff will give a clearer picture on the direction the economy will take though the regulator remains cautiously optimistic of a turn in fortunes to the better.
Market stability and the capping of interest rates among others are the biggest concern for investors amid the ongoing political temperatures which is hugely impacting on their decision making.
With the stock market having lost almost 100 billion shillings after the ruling in the presidential petition, Njoroge says the outcome of next month’s presidential election runoff will give a clearer picture on the direction the economy will take.
With the cap on interest rates also impacting on investors, Njoroge says that CBK is putting in place measures that will help do away with the cap eventually by first fixing the indiscipline in Kenya’s free interest rates economy.
Njoroge further says that CBK is currently enhancing the capacity of credit reference bureaus to not only blacklist defaulters but develop credit scores for borrowers that will be used in pricing their loans.
According to the governor, banks have since submitted their new business models to the CBK aimed at coping with the cap on interest rates regime with consumers set to experience the changes with time.