Economy is hurting due to high political temperatures; KEPSA warns

The Kenyan business community has warned that heated political rhetoric and hard-line positions are hurting the economy.

Under the banner of the Kenya Private Sector Alliance (Kepsa), the group says that the continued political stalemate is turning out to be a serious threat to the economic well-being of the state.

The alliance brings together players from different sectors of the economy.

It warned that the current political situation has triggered an economic slowdown because it was affecting investment and spending decisions.

The business community warned of impending  factory shutdowns, mounting corporate and personal debts, international conference cancellations, and a slump in the tourism sector accompanied by massive job losses.

It argued that already the gross domestic product had slowed down markedly to five per cent in the immediate pre-election period, a trend that is expected to worsen when updated numbers taken during the election period come out.

“Our super-heated political rhetoric and hardline positioning by politicians, accompanied by threats of chaos and implied violence, are now a serious threat to the continued economic well-being of this country,” Kepsa said in a statement.

The alliance listed three point messages to the political class, the Independent Electoral and Boundaries Commission (IEBC), the Supreme Court, security agencies and other institutions critical to the success of the fresh Presidential election.

To the political class, the Kepsa wants leaders to be civil to one another and allow the fresh presidential election to take place and respect the independent institutions. The business people accused politicians of subjecting the country to vile abuse.

“Without elections, we risk lack of legitimacy among our political leaderships. The answer lies in our strict adherence to the issues raised in the Supreme Court's ruling," said the alliance.

Kepsa said independent institutions should dispense their mandates without fear or favour, warning: “We toy with them at our peril.”

“As the business community we are passionate about maintaining independence of institutions such as the IEBC and the Supreme Court. We must let these carry out their mandates unfettered,” stated Kepsa.

However, Kepsa also cautioned that the institutions' leaders must demonstrate that they are men and women of integrity, strong character, vision, and national pride.

The group warned against excessive force used to quell demonstrations.