What Kenya truce means to business in the East Africa region

 

Kenyan President William Ruto (left) and Opposition Leader Raila Odinga.PHOTO | NMG

By 

Zephania Ubwani

Summary

·         The option for dialogue would halt what they feared could have been spillover effects of the violent street confrontations to the neighbouring countries, especially Tanzania

Arusha. Business stakeholders have welcomed an apparent truce between the Kenyan government and the opposition.

They said the option for dialogue would halt what they feared could have been spillover effects of the violent street confrontations to the neighbouring countries, especially Tanzania.

“Our view is very clear. Dialogue is the best option rather than confrontation,” remarked the executive director of the East African Business Council (EABC), Mr John Bosco Kalisa.

He applauded President William Ruto and Opposition Leader Raila Odinga for agreeing to settle their grievances amicably.

He said continued demonstrations in Kenya could have dealt a much bigger blow to the economy of the country and its trading partners in the region.

Mr Kalisa cited the 2007/2008 bloody chaos in the East African nation, which, according to him, led to the loss of billions of shillings to businesses in the region, mostly in Kenya.

“We don’t want to repeat the same mistakes,” he told The Citizen, noting that the political environment has to be stable for businesses to be secure.

A publisher based here, who spoke on condition his name not be mentioned, said Kenya remains a leading trading partner with Tanzania.

“We sell a lot to Kenya. Massive economic disruptions in that country will also affect us,” he said in an interview.

He added that dialogue between the government of the day in Kenya and the opposition was necessary because the last polls were a closely fought affair.

“Ruto cannot ignore Raila because nearly half of Kenyans are on his side,” he explained, adding that promises to bring down the cost of living were far from being fulfilled.

Political analysts as well as Kenyan nationals based in Arusha joined the fray over the new developments in Nairobi, blaming both sides for the recent hostilities.

“We are not surprised by the truce. What would have been the end game?” Asked Donald Deya, the CEO of the Pan African Lawyers’ Union (Palu), a continental lawyers’ body based here.

Mr Deya, a Kenyan advocate, wondered as to how the chaotic demonstrations would have ended without the reasoning by Ruto and Raila “to sit on a table and resolve the issues”.

Mr Duncan Karanja, another Kenyan working here, said demands by the opposition supremo, Raila, should not have been downplayed in the first place.

“Raila capitalised on the skyrocketing prices of food to mount the demos and won the support of thousands because of the hardships,” he said.

However, Mr Karanja admitted he was not sure if all the demands by the opposition would be fully met by the Kenya Kwanza government.

“Fifty percent may be met and the other 50 percent may not. It is a give-and-take. But it would be a big relief if the price of food were lowered,” he pointed out.

Mr Walter Maeda, the chairman of the Arusha chapter of the Tanzania Chamber of Commerce, Industry, and Agriculture (TCCIA), praised Ruto and Raila for agreeing to talk.

If Kenya had failed to do that, it would have lost credibility with the donors. The economy would be severely impacted, as has already been seen,” he explained.

Had the chaotic and highly disruptive protests continued, the entire East African Community (EAC) region would have been impacted to varying degrees.

Following the March 20th demonstrations, Uganda, which depends on Kenya as a sea route for its overseas trade, nearly closed its border for fear of chaos spilling over there.

At the Namanga border post between Tanzania and Kenya, trucks carrying goods to either side were halted for hours at shared One Stop Border Posts (OSBPs).

“The Kenya Kwanza government should recognise Raila as a bonafide opposition leader and not a troublemaker,” Mr Maeda further said.

Mr Andrew Malalika, a tour operator, said that had the chaos continued in Kenya, the tourism sector would have suffered.

“The tourism sector and cross-border transportation would have been somehow impacted. But now our fears are over. They have agreed to bury the hatchet,” he said.

However, Mr Malalika, who manages an outfit called Jackpot Safaris and Tours, implored Kenyans to address the tribalism that continues to divide them.

President Ruto, he said, would win much respect if he worked with the opposition to address a myriad of problems facing their country, like drought and food scarcity.

Following the truce, reportedly brokered by the Western countries and the religious leaders, the Azimio la Umoja Kenya One Alliance party announced the suspension of twice-weekly demonstrations effective yesterday.