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New Kenya Government Needs to do More – Report

Kenya's economy

The new Kenyan government will have to take a number of steps to revive the economy after the October 26th, 2017 elections, a new report commissioned by ICAEW and produced by partner and forecaster Oxford Economics has revealed. The report provides a snapshot of the region’s economic performance. It focuses specifically on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast, South Africa and Angola.

According to the report, a start of the new Kenyan government would be to rethink the regulatory cap on commercial interest rates, which has starved small and medium enterprises of funding. “Reining in expenditure, in order to ensure government debt does not get out of hand, would improve the economy’s future prospects. Furthermore, the newly elected government will need to lead the charge against corruption,” reads the report.

Voter turnout is likely to be higher than on August 8 as supporters from both Jubilee and the National Super Alliance (NASA) endeavor to cement their candidate as the legitimate winner. Should Raila Odinga come to power, policy making and implementation will be affected by the fact that the Jubilee party has majorities in both the National Assembly and Senate and will more than likely use their advantage to stifle any policies that run contrary to their own goals.

Michael Armstrong, the Regional Director, ICAEW Middle East, Africa and South Asia said: “Although the opposition party succeeded at the Supreme Court leading to the nullification of the August 8 result, they still have a challenging time ahead. Should they succeed in the upcoming poll; the National Super Alliance will have challenges in implementing their manifesto due to the majority Jubilee holds in Parliament.”

Looking at the rest of the region, Rwanda’s President Kagame’s re-election is expected to result in the continuation of business-friendly policies while the operating environment in Tanzania is becoming increasingly complicated due to President John Pombe Magafuli’s economic nationalism. Ethiopia’s real GDP growth is forecast to come in at an impressive rate of 7.1% despite the risk of social unrest that may be disrupting the state led development that has produced the country’s economic boom in the past.

ICAEW is a world leading professional membership organisation that promotes, develops and supports over 144,000 chartered accountants worldwide. We provide qualifications and professional development, share our knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession.

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