The Kenya National Chambers of Commerce and Industry (KNCCI) has urged leaders to focus more on ensuring that the country’s economy is on the right track as opposed to politicking about the 2022 elections.
KNCCI is concerned that the economy is treading a not-so-rosy path and if the government doesn’t rebuild it in 2019 and 2020, hopes of ever fully becoming sustainable are mere dreams.
According to Kiprono Kittony, the national chairman of KNCCI, the World Bank has projected Kenya’s economy to grow by 6.02 percent this year from 5.475 in 2018.
However, Kittony said, this positive outlook could be affected by the high-octane politics that is gaining momentum, especially on a referendum and the succession politics of 2022.
The prolonged electioneering period of 2017 affected the economy greatly and the country has not fully recovered. This is evidenced by profit warnings of companies listed on the Nairobi Securities Exchange.
The consequences of political instability on the economy include a reduction in investments due to unfavorable business environment as well as slow growth. Poor performance, on the other hand, may lead to political unrest and the collapse of the government.
Currently, the situation in the country calls for more attention. All indications point towards the need for more effort in salvaging the political economy in the country not to mention the need for the improvement of the quality of life of citizens across the country.
Meanwhile, the political upheavals continue to rock the country with President Uhuru Kenyatta saying he will not be blackmailed by individuals looking disrupt the efforts he and Raila Odinga are making in uniting Kenyans.
The sentiments also come at a time when several MPs from Central Kenya have accused President Kenyatta from shelving parts of the region that didn’t support him in terms of development
The urgent need for political stability suggested by the KNCCI means stronger institutions, rooting out corruption cases, ensuring a favorable business environment, and upholding the rule of law. With all these in check, at least, the country’s economy and the political environment will be stable and sustainable.
Nonetheless, KNCCI has also urged the government to reconsider its position on interest rate capping and other policies that are hindering small businesses from accessing capital.