SMEs suffer brunt of current political events

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Political uncertainty
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Small and medium size enterprises have been the biggest casualties in the prevailing political climate.

This is according to the Kenya National Chamber of Commerce and Industry which says it will conduct an analysis to ascertain the extent this has had on the economy.

KNCCI National Vice Chairman James Mureu says the current political climate might slow Foreign Direct Investments till next year.

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For the better part of the year, the country has been battling drought that has had a direct impact on inflation. This was further complicated by credit crunch as a result of the interest rate cap which has seen banks opt to lend to government as opposed to corporates and SMEs.

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National Treasury Cabinet Secretary Henry Rotich recently revised downwards the 2017 economic growth projection to 5% from an earlier projection of 5.5% on the backdrop of the current political climate.

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KNCCI now says the situation is likely to aggravate growth especially among the SMEs. The chamber has embarked on an assessment which will ascertain how much the country has lost during the period.

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This comes as the National Super Alliance threatens to boycott products and services of some companies.

KNCCI however supports picketing and demonstrations as prescribed within the law, but calls on respect of properties and business.

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