KENYA
Costs of Contention
The political crisis engendered by Kenya’s disputed presidential election has hit the country where it hurts, adding to the impact of a drought to drag economic growth down to its slowest pace in five years, according to the World Bank.
The World Bank this week cut its 2017 growth estimate for Kenya’s economy to 4.9 percent from an April forecast of 5.5 percent, Reuters reported.
After the Supreme Court nullified the Aug. 8 poll re-electing incumbent President Uhuru Kenyatta and ordered a re-run that was boycotted by the opposition, private investment has slowed due to political risk. Meanwhile, a drought has already driven up inflation and reduced consumer demand, the bank said.
The crisis isn’t over yet. While Kenyatta has been sworn in for a second five-year term, opposition leader Raila Odinga has said he will hold a parallel “swearing-in” ceremony next week.
Nevertheless, the bank expects the economy to rebound to 5.5 percent in 2018 and 5.9 percent in 2019.
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