Wednesday, March 27, 2013 - 00:00 -- BY LOLA OKULO
A
section of investors, markets and workers have adopted a wait-and-see
attitude pending the Supreme Court ruling on the presidential petition
raising concerns of slow economic growth for the current quarter.
According to the Kenya Private Sector Alliance and the Federation of Kenya Employers operations have slowed down in some areas and sectors due to tension over the awaited court ruling.
Tourism and construction are some of the sectors that have suffered significantly from the current slump according to Kepsa.
"No new construction is taking place because contractors are waiting to see what will happen. Only the old construction projects are ongoing," said Kepsa vice chairman Vimal Shah.
Tourism, Kepsa said, is suffering because its a leisure-oriented business that does not do well in a tense situation as the one currently in the country.
Kepsa CEO Carole Kariuki said that as a result even the businesses that depend on hotel business like the food suppliers are bearing the brunt of the prolonged electioneering period.
Yesterday, the US issued a travel advisory to its citizens warning against travel to "downtown business areas" among other places within the country. This, the US said is due to possibility of "strong public reaction" when the court delivers its ruling on Saturday.
Employers are also concerned over lost work time and tension in work places that has affected production. FKE said the Western region and multinational firms and non governmental organisations are facing worker shortages because some of their employees are yet to return to work.
"In Kisumu business is now suffering for lack of supplies from Nairobi. Stocks in the shops are slowly dwindling and transporters have withheld their trucks in Nairobi. In the Rift Valley and Coast regions business is quite low as business owners are awaiting the outcome of the petition,” said FKE executive director Jacqueline Mugo yesterday.
The Supreme Court decision on the presidential results of the March 4 vote will be final and is thus expected to elicit strong reactions whichever way it goes.
According to the Kenya Private Sector Alliance and the Federation of Kenya Employers operations have slowed down in some areas and sectors due to tension over the awaited court ruling.
Tourism and construction are some of the sectors that have suffered significantly from the current slump according to Kepsa.
"No new construction is taking place because contractors are waiting to see what will happen. Only the old construction projects are ongoing," said Kepsa vice chairman Vimal Shah.
Tourism, Kepsa said, is suffering because its a leisure-oriented business that does not do well in a tense situation as the one currently in the country.
Kepsa CEO Carole Kariuki said that as a result even the businesses that depend on hotel business like the food suppliers are bearing the brunt of the prolonged electioneering period.
Yesterday, the US issued a travel advisory to its citizens warning against travel to "downtown business areas" among other places within the country. This, the US said is due to possibility of "strong public reaction" when the court delivers its ruling on Saturday.
Employers are also concerned over lost work time and tension in work places that has affected production. FKE said the Western region and multinational firms and non governmental organisations are facing worker shortages because some of their employees are yet to return to work.
"In Kisumu business is now suffering for lack of supplies from Nairobi. Stocks in the shops are slowly dwindling and transporters have withheld their trucks in Nairobi. In the Rift Valley and Coast regions business is quite low as business owners are awaiting the outcome of the petition,” said FKE executive director Jacqueline Mugo yesterday.
The Supreme Court decision on the presidential results of the March 4 vote will be final and is thus expected to elicit strong reactions whichever way it goes.
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