Failed South Sudan military coup shakes investors

President Salva Kiir of South Sudan (right) with then vice-president Riek Machar during a rally in 2010. President Kiir accuses Machar's supporters of planning a coup. Photo/FILE   NATION MEDIA GROUP

By WANGUI MAINA and GERALD ANDAE

IN SUMMARY
Tension remained high in the South Sudan capital as President Salva Kiir declared a curfew, saying soldiers loyal to sacked deputy president Riek Machar were behind the failed putsch.
People stayed indoors most of Monday and businesses were closed in the two-year-old state where Kenya is the top source of foreign direct investments.
Kenya Airways and Fly 540 were forced to cancel their flights to Juba following the closure of the airport.
Kenya Private Sector Alliance (Kepsa) chief executive officer Carol Kariuki said the business community could be forced to close their enterprises for fear of attacks and losses.

Failed Juba coup shakes investors


Flights from Kenya to South Sudan were suspended Monday following an attempted coup that left Kenyan businesses operating in Juba facing uncertainties.

Tension remained high in the South Sudan capital as President Salva Kiir declared a curfew, saying soldiers loyal to sacked deputy president Riek Machar were behind the failed putsch.

Mr Machar was sacked following a cabinet reshuffle in July.

People stayed indoors most of Monday and businesses were closed in the two-year-old state where Kenya is the top source of foreign direct investments.

Kenya Airways and Fly 540 were forced to cancel their flights to Juba following the closure of the airport.

“We had to cancel our two flights and expect significant loss of revenue on our part as we wait and see,” Fly 540’s operations director, Nixon Ooko, said in a phone interview.

He said the revenue loss for cancelling the two daily flights to Juba could stand between $40,000 and $50,000 per day.

Juba is one of the airline’s most lucrative destinations and both flights were fully booked. KQ cancelled its three flights to Juba indefinitely.

Kenyan corporations, small enterprises and individuals have in the past five years pumped billions of shillings into the country hoping to reap the independence dividend and pioneer benefits.

Companies such as Kenya Commercial Bank (KCB), Equity Bank, Co-operative Bank, UAP Insurance, EABL and Bidco, have invested in the country and are keenly observing the situation.

READ: How South Sudan is minting money for Kenyan banks

Kenyan entrepreneurs have also set up businesses in Juba to tap into the growing opportunities the new country has.

“We expect some disruption to sales but hope things will get back to normal quickly. Impact on overall EABL performance will be minimal,” EABL chief executive Charles Ireland said.

KCB spokesperson Judith Odhiambo said the bank was still monitoring the situation while East Africa Portland Cement Company said it was still assessing the impact on its distributors.

Kenya Private Sector Alliance (Kepsa) chief executive officer Carol Kariuki said the business community could be forced to close their enterprises for fear of attacks and losses.