Business owners decry rising political temperatures

Written By: O'Brien Kimani
2094

Business
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Business owners are raising concern over the rising political temperature saying it’s affecting the economy negatively.

The Kenya National Chamber of Commerce and Industry says the economy has shed between 0.2 to 0.3 percent this year due to politics.

Chairman Kiprono Kittony says the situation has been aggravated by low loan uptake due to the interest rates capping law.

The year 2017 has been a tough for the economy following the record breaking drought that affected tea and coffee out-put by about 30 percent.

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This has also led to a significant drop in food production forcing the government to subsidize maize flour.

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The economy is further coming to terms with the reality of the interest rate pricing law, which has seen credit to the private sector plummet by about 8.6 percent in the second quarter of this year.

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The Kenya National Chamber of Commerce and Industry says small and medium enterprises are the hardest hit due to lack of credit.

Kittony says uncertainty caused by last Friday’s Supreme Court ruling on the presidential election has moved the situation from bad to worse.

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Since the ruling by the Supreme Court six days ago, the Nairobi Securities Exchange has lost close to 160 billion shillings in paper money.

Kiprono says the Independent Electoral and Boundaries Commission should expedite the voting process to halt further deterioration in business confidence.

He says tourism and the transport sectors are likely to emerge as the biggest losers if the political stalemate persists.

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