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Politics hurts Kenyan growth prospects, says Kepsa survey
Politics is directly hurting Kenyan businesses and their contribution to the economy, a survey reveals.
The study notes that when economic activities are affected by what politicians say and do, there is a direct impact on tax collection as well as job creation in the country.
The survey calls for the need to sensitise those who take part in demonstrations to respect private property as their actions do not hurt the government directly, but affects the ability to create wealth and employment.
“Eighty (80) per cent of the 509 businesses involved in this study showed political demonstrations hit hard their incomes and threatened livelihoods but no politician seems to give a hoot to our cry. We have a role to reawaken politicians from slumber and force them to respect businesses first before doing anything else to pursue their own interests,” said Kenya Private Sector Alliance chief executive Carole Kariuki.
The survey was conducted by Research firm Trends and Insights For Africa (Tifa), which was sanctioned by the alliance.
It says it is self-defeating for politicians to carry out activities that disrupt business as this hits revenues meant for development at both county and national levels.
The survey called for rigorous sensitisation workshops to awaken politicians’ consciousness on the role of business in any community, saying it went beyond the scramble for power and that existence of firms was a matter of life and death for any society.
Kepsa said Kenyan businesses were apprehensive of the political situation as General Elections neared and called for closer consultations to avert revenue and job losses.
“Kenyan demonstrators must know that hurting businesses hardly hurts the government but Kenyans’ general wellbeing in terms of investments and development,” said Ms Kariuki.
The TIFA report castigates politicians’ behaviour saying as role models, they must lead by example or risk hurting economies of counties as potential investors will stay away if unsure of the safety of their ventures.
“For Nairobi, which is fast shedding the terrorism tag and attracting global events, we need to protect its name as Africa’s preferred first stop and hub for multinationals or else risk losing billions of shillings in terms of investments,” said the report.
Shun the CBD
It observed that local investors would shun the Central Business District (CBD) in favour of the capital city’s suburbs since no one wants their properties to be destroyed every time there is a demonstration.
Tifa chief executive Margaret Ireri said Kenyans must divorce business and political issues so as to enhance Kenya’s competitiveness as a mature democracy that allows free thoughts to prevail as well as holding of peaceful demonstration as enshrined in the Constitution.
Nairobi City Protests: Businesses Count the Costs
Preamble: Global Perspective
Demonstrations* are considered as a means of bringing about social change but in reality they take a toll on the society especially when they turn violent. Cities around the world continue to face the challenge of protests with the worst ones reported in India, USA, UK and Argentina. The post-election demonstrations in Nairobi in December 2007 makes it the only African city in the top ten list of worst ever protests in the world. Protests can have serious long-term consequences as investors and businesses steer clear of areas where the safety of their capital, their employees and their customers is at risk.
* Demonstrations are usually peaceful and they do not destroy the properties. Protests can be defined as a civil action where people behave violently and are out of order.
