Kenya is going to repeat elections on 26th of October 2017 and the IEBC is getting ready to deliver credible verifiable election, what are the effects of these polls?
Drop In Kenya’s Economy
The Central Bank of Kenya governor anticipates a dip in the economy but not below 5.0 %.
The bullish Dr Njoroge admitted the central bank may slightly lower its 2017 economic growth forecast to reflect uncertainty around the elections.
“The rate could be south of 5.5 per cent, but definitely above five per cent,” Dr Njoroge was quoted saying. The government has already cut the forecast from 5.9 to 5.5 per cent.
Air Tickets Sales Drop
Air ticket sales dropped by Sh1.5 billion over the past two months following travel restrictions in government and the prolonged election period that has seen cautious travellers reduce cross-border movement.
The Kenya Association of Travel Agents (KATA) air ticket bookings dropped 10 per cent to 1.5 million in September, a month marked by the Supreme Court’s nullification of President Uhuru Kenyatta’s victory over irregularities and street protests against the October 26 repeat polls.
The standoff has frightened investors and slowed growth as consumers hoard their money.
“It is estimated that with average monthly ticket sales of about Sh5 billion, the industry has in the last two months alone lost about Sh1.5 billion in sales as a result of political uncertainty,” said KATA.
“This could rise to over Sh3 billion if the current impasse is not quickly resolved.”
NSE investors lose Sh11bn as political uncertainty mounts
Nairobi Securities Exchange (NSE)investors yesterday lost Sh11.44 billion as the cloud of political uncertainty that has persisted since the September 1 nullification of the presidential election intensified with news that electoral agency commissioner Roselyn Akombe had resigned and fled the country.
Dr Akombe’s decision to jump ship seven days to the October 26 repeat poll raised political anxiety slowing down trading at the Nairobi bourse and turning all the indices red.
Share prices fell in 16 out of the 64 listed securities at the exchange, reflecting subdued investor sentiments that are expected to persist till mid next month.
Market capitalisation stood at Sh2.295 trillion at the close of business, down from Sh2.306 trillion on Tuesday. The market closed 6.23 points lower at 3591.62 points, weighed down by significant losses on blue chip counters, which normally attract heavy foreign investor trading.
The number of shares traded rose by 8.2 million to Sh29.12 million from Tuesday’s Sh20.91 million – meaning there was little movement on share prices.
This came as the Central Bank of Kenya (CBK) reportedly sold dollars to buttress the shilling, which equally took a hit from the political uncertainty.
The NSE All Share Index (NASI) was down by 0.78 points to 156.6 points while the NSE 25 Share Index dropped 13.03 points to stand at 4080.25.