Electioneering period: Cushion economy against polls risk
The electioneering period is gathering momentum, which presents a mixed bag of fortunes for investors.
On the one hand, many are looking forward to peaceful polls and orderly change of government.
On the other, many are apprehensive about what the latest elections mean for the country.
Coming at a time the coronavirus has ravaged the economy and many livelihoods any uncertainty will present a challenge to policymakers.
Already the insurance sector is predicting a windfall as it adjusts its products to align with the unfolding political situation.
On the flip side, good times for insurance mean heightened risks for other businesses.
The industry has singled out political violence risk and terrorism indemnity covers as areas of highest growth this year.
Further, a new survey by Standard Chartered Bank now warns that even high net individuals are said to be cautious already and are opting to save money rather than invest it.
The study further indicates that this shift has seen money meant for investment being set aside, rattling the financial markets. This has created low confidence in the economy.
Although 96 per cent of respondent affluent Kenyans have set new post-pandemic goals, they are not taking actions that can actualise their decisions.
But the real risks which will be difficult to deal with going forward is that campaigns are quickly gathering momentum.
With this comes the possibility that Kenyans may not know exactly how the new Covid-19 variant will pan out.
Even if the situation is being dealt with enhanced firewalls and vaccinations, fears abound that densely populated urban informal settlements could turn into hotspots, not only of political gatherings but threaten to be super spreaders for the virus due to the numbers they command.
Granted, Kenya has swiftly implemented mitigation policies, but the economic, social and health-related harm still abounds.
Lest we forget, the pandemic rapidly and disproportionately impacted the lives of many Kenyans.
Looking at the scenarios for 2022, policymakers must deploy assistance to ensure urban informal settlements are cushioned against any large-scale disruptions.
They must also find a remedy to ensure that the dip in appetite for investors does not deny the country opportunities for growth and development.
The country has suffered a lot in the last two years and challenges of our own making must not drag the economy into the abyss if they can be dealt with.
Let all politicians commit to a peaceful election.
