NAIROBI, Kenya, Nov 7 – Losses from the prolonged electioneering period in Kenya has hit Sh130 billion and estimated at 1 percent of Gross Domestic Product Treasury has said.
Treasury Cabinet Secretary Henry Rotich says the losses have seen the government revise its economic growth prospects to 5.1 percent in 2017.
He, however, remains confident that the country will rebound in 2018.
“We are forecasting economic growth to steadily grow at between 5 percent and 5.1 percent for the remainder of the year in view of the prevailing economic conditions in the country; and in defiance of the poll jitters that have characterized the sector for the last four months,” he said.
The country’s economic outlook was earlier in the year adjusted downwards to 5.7 percent from 6 percent growth owing to unfavourable weather conditions that drove up the rate of inflation.
Rotich says that the government is considering engaging investors in the international capital markets as an option of meeting demands to fund infrastructure projects and to mitigate the loss the country has experienced over the electioneering period; adding that the conversation was still at a very early stage.
He says international trade is expected to pick up immediately the electioneering period is over – a move that will further boost economic growth through the trickle-down effect that will result from new businesses setting up in the country.
“We are aware of companies that have had investment programs in the pipeline to come and invest in Kenya and have decided to break ground immediately after the election, but there are a number of firms that have been coming in and continuing with their development. We are however not aware of any company that has closed shop during the period,” the CS said.
Last Month IMF cut Kenya forecast to 5 percent from 5.8 percent.
Also last Month the Kenya Private Sector Alliance said that they have lost Sh700 billion due to the prolonged polls.
Kenya Revenue Authority (KRA) also said that it lost about Sh50 billion in revenue collection during this poll crisis.
The Supreme Court nullified presidential election on August 8th and ordered a Fresh poll that was conducted on October 26th.
President Uhuru Kenyatta won the second round of the presidential election with 98 percent as the main rival Raila Odinga boycotted the election.
Odinga has since called for an economic boycott which further risks the country’s growth.