Election aftermath: What now for the economy?

Hey Patriots 😉 

I am so excited that we took part in making history during our voting day 🙂

The election event was peaceful, a question though: Did you feel the value for your money? A budget of ksh 2500 per voter was set aside to cater for the elections.Do you feel the ksh 2500 was a good investment?

Well, in my opinion, it was value for money. Starting from the security personnel that was deployed in my polling station which I just had to send my identity card number to 70000 to know my voting details to the well-trained electoral staff who directed us during the process gave meaning to the value.

The staff was well organized and ready to ensure we all had an easy time.The electoral education was well invested in and the international observers were keen on the process.

I was actually proud of my country when people voted in the morning and later on went on their business operations while others reported to work.This is a clear indication that our economy will not be shaken.

It is a major improvement in our electoral system we must admit.

We may not be there yet but undeniably we are a good work in progress.

Kenya has been living through a period of economic uncertainty since the election period. What will the coming months bring and how will households be affected?

One initial response to the general election result was a weakening in the value of the shilling. This came as no surprise – political uncertainties hit the currency markets.

A smooth election process will be good news for businesses firms whether local or foreign. By retaining a good business environment we are able to experience a pick-up in business confidence and, with this, an increase in investment. The aftermath of a peaceful election will stimulate investment and prevent unemployment from rising again.

An examination of past economic surveys shows that the polarizing and violent nature of Kenyan election politics and uncertainty about the outcome are among the root causes of economic slowdown.

In the first 3 election years of the multiparty era, Kenya’s economy slowed to a virtual standstill, shrinking by 0.8 % in 1992 and a pick up by 0.5 % in 1997 and 2002.

In 2007 the economy grew by an encouraging 7%  but the good news was short-lived. The contested election resulted in violence in 2008 and sent down to a growth of only 0.25%!

In 2013, the economy grew by 5.7%, which dropped only slightly to 5.3% in 2014 despite another disputed election, suggesting that Kenyans and investors had more confidence in the dispute resolution mechanisms created by the new constitution.

Low economic growth means companies have fewer opportunities to grow hence hire fewer people. It also means less revenue for the government and more taxes to cover government expenses. 

For the household finances, it exposes the individual to less money to spend, fewer job opportunities, high cost of living and the most priceless necessity peace of mind.Now if business firms cannot invest neither can you.

Previous economic surveys indicate that many producers in key sectors of the economy adopt a wait-and-see attitude during general elections. Agriculture, on which Kenya’s economy depends heavily while tourism both foreign and domestic will be greatly affected.The foreign exchange earner is also affected with investors holding decisions and in extreme situations canceling them completely in favor of other countries.

If we take the step and reject the path of violence and division we will move Kenya towards prosperity and business opportunities that will unleash our extraordinary capabilities.For business’ sake let’s maintain peace.

In our wait and see attitude let’s be the voice of reason, the peace campaigners and the ultimate citizens of a peaceful Kenyan election.🙏

 

57731-linedivider

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s