Economy on course despite Westgate attack

September 24, 2013
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Treasury Permanent Secretary Kamau Thugge said on Tuesday that projects and reforms scheduled will go ahead as planned to buffer against any potential shocks/CFM
Treasury Permanent Secretary Kamau Thugge said on Tuesday that projects and reforms scheduled will go ahead as planned to buffer against any potential shocks/CFM
NAIROBI, Kenya, Sep 24 – The government says the Westgate mall attack that has left about 62 people dead and over 175 injured will not hamper the realisation of the year’s economic projections.

Treasury Permanent Secretary Kamau Thugge said on Tuesday that projects and reforms scheduled will go ahead as planned to buffer against any potential shocks.

“We will continue to implement the infrastructure that has been budgeted for; we will continue to implement the structural reforms that were envisaged at the beginning of the year,” he said.

Thugge said the economy will not be affected and implementation of the projects will continue.

“This incident has not affected our debt servicing capacity, we still intend to issue the sovereign bond, it should not affect the growth of the economy which we are expecting to be at 5.5 percent to 6 percent,” he said.

He says the Westgate attack has not caused a deviation from the development goals.

“It’s an isolated incident… we don’t see this having any impact on the economy at all,” he said.

The Commercial Bank of Africa’s Treasury Department says there will be a small dent on account of reduced confidence.

“There will be reduced investment confidence, how the government will deal with the situation is very important,” said CBA Financial Analyst Joshua Anene.

Anene asked the government to restore investor confidence as soon as the tragedy is over.

Despite the negative news on the terror attack during the weekend, foreign investors continued to dominate trading accounting for 58 percent of trades at the close of trading on Monday.

Cabinet Secretary for East African Affairs, Commerce and Tourism Phyllis Kandie has assured tourists that Kenya is peaceful as the country prepares to host two crucial conferences in Nairobi this week.

President Uhuru Kenyatta has also urged the international community not to issue travel advisories pointing out that “this is not the time to ask for travel advisories.”

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