NAIROBI, Kenya, Sept 14 – The fresh Presidential election slotted for October 17 will not have a significant impact on the economy.
Central Bank of Kenya Governor Patrick Njoroge says that barring any unforeseen circumstances, the markets have already shown resilience as indicated post-August 8th.
“The markets have actually reacted very favourably. Yes, there were shocks in the market, but I think we are more worried about things that may not take place,” said Njoroge, who was speaking during the third annual East Africa Investor conference in Nairobi.
On September 1st, the Supreme Court nullified the August 8th presidential election which triggered a circuit breaker at the Nairobi Securities Exchange with the market losing over Sh50 billion in about 10 minutes.
The landmark judgement was made following a petion filled by Opposition leader Raila Odinga disputing the outcome of the election which had seen President Uhuru Kenyatta declared the winner.
The market had reacted favourably following President Kenyatta’s re-election, with the security and economic situation remaining stable.
However, after the court nullified his election, the currency dropped – trading 0.2 percent weaker against the dollar while shares tumbled.
Despite the initial shocks experienced at the market, analysts have said that ultimately, the supreme court decision will be for the good of the economy in the long run. Cytonn Investments Chief Executive Edwin Dande for instance said that the decision has raised the country’s profile with regard to constitutionalism, the rule of law and has reduced the country’s political risk.
“In the long term, the Supreme Court decision will be seen as strengthening Kenya’s institutions, an important step forward for the overall development of the country,” Chief Africa economist at Standard Chartered Plc Razia Khan said.