We need cure for the differences that hurt economy during polls

Shops on Gitanga road opposite Rusinga School go up in flames after they were set on fire by protestors from Kawangware 56, Dagorretti North Constituency in Nairobi on Friday. PHOTO | SALATON NJAU | NMG 

In Summary

• There is need for a mechanism to accommodate poll losers in government for peace to prevail.

By JAMES KARIUKI
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There is need to create mechanisms that will accommodate election losers if the cyclic five-year fallouts are to be avoided in future, traders now say.

This can be achieved through amending the law to provide for some specific roles that will be taken over by the losing team.

Without providing specifics, the Kenya Private Sector Alliance said such an arrangement would ease the “pain and suffering” witnessed after elections are held where losers are condemned to the back burner for the next five years.

“This election has raised fundamental questions about where Kenya is headed and it is clear to us that regardless of the outcome of the presidential election, when it’s over, Kenya is overdue a national conversation,” it said last week.

Kepsa Foundation chairman Lee Karuri said political inclusivity must be considered as a remedy for the perennial politically instigated violence that has disrupted lives, damaged property and caused loss of lives.

“The national conversation will seek a lasting remedy to the sharp divisions that fuel animosity among Kenyans that witnessed barricading of roads and destruction of property which adversely affects Kenya’s economy,” he said.

The Kepsa statement read by its Trustee Patrick Obath said a large section of Kenyans was in agreement that the current Constitution had failed to meet the aspirations of Kenyans.

Kepsa said it would wish to see devolution enhanced further, a mechanism for addressing historical ills put in place, a peace building and reconciliation mechanism launched to facilitate healing thereby enabling Kenya’s ethnically divided communities to co-exist peacefully.

The national talks, they said, should fasttrack economic revival to spur job creation as well as revive Kenya’s global stature which has been severely damaged.

Kepsa said disruption of peace hurts Kenya’s lifeline, which is the private sector and agriculture that employ the bulk of Kenyans.

According to the Kenya National Bureau of Statistics (KNBS), agriculture, manufacturing, wholesale and retail sectors as well as education and construction employ more than 80 per cent of all workers.

In its just released overview of the Kenyan Economy, Kepsa said leaders must move fast and seek lasting solutions to emerging challenges that are bogging down growth thereby hurting innocent and hardworking Kenyans.

It said drought solely blamed on climate change requires an all-inclusive solution to support greening programmes to restore forest cover, reduce cultivation along river banks as well as promote agronomy.

It said while interest rate capping had been politicised forcing leaders to take decisive positions, it ought to be reconsidered to end the current starving of credit to small firms, which employ millions.

READ: Divisive election fails to lift Kenya’s cloud of political uncertainty

Kepsa said most companies were unable to access the much needed credit to expand their businesses or acquire fresh stocks as banks feared losing their money under the prevailing political environment.

Kepsa said the current challenges require an all-inclusive strategy at all levels to hasten recovery of the economy where government programmes are positively viewed as developmental programmes for public good than political programmes for individual political parties.

In its quest for national conversation, Kepsa said the electioneering period should also be legislated and reduced to the usual, four months, saying a prolonged political period hurt businesses.

READ: 47pc of factories to shed jobs over election jitters

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The Kenya Auto-Bazaar Association secretary Charles Munyori said interest capping had dealt vehicle sales a severe blow since banks no longer considered pay slips while issuing loans for car loans.

This they said was inadequate to ascertain ability of an individual borrower to pay and were now demanding other collateral such as land.

“Banks have been forced to return seized vehicles to the borrowers and are now begging the borrowers to pay what they can afford since the rate cap stops them from charging extra fees in case of default. Dishing out loans is no longer lucrative and it has not only hurt banks but we the car sellers.