Politics hurting our economy

Courtesy: Star Newspaper

Planning PS Irungu Nyakera has warned that the country’s current political uncertainty is hurting the economy.

Irungu said on Thursday there is a need to ensure stability, secure investor confidence and root for adequate supply of food.

In a statement, Nyakera said though the country underwent a peaceful election, the ruling by the Supreme Court that nullified President Uhuru Kenyatta’s re-election has birthed unnecessary tension across the country.

“This year, the general election spreads across two-quarters and it is not clear when political tensions will ease,” the PS said.

“The prolonged uncertainty created by the elections is likely to slow down the growth of the economy in 2017 from various angles,.”

He added that the current wait-and-see attitude by prospectors is slowing down investment.

“The travel advisories, due to the perception of insecurity during the election period, negatively impact key sectors such as tourism, not forgetting that the stock market (NSE) index is also adversely affected by negative market sentiments.”

Nyakera cited hotel, transport, wholesale and retail sectors as among those adversely affected by the situation.

“Following the uncertainty, there is need and urgency to conclude the 2017 presidential elections.”

The state official said the 2013 general election demonstrated that when a government is formed immediately, economic activity is not affected.