Raila-Uhuru tussle features in Sh 200 Billion investment

janet ndila

March 4, 2018 11:04 AM

Sh200Billion investment at risk as NASA-Jubilee rivalry intensifies

The tussle between President Uhuru Kenyatta and Raila Odinga has featured once again as the nation seeks financing to the tune of Sh 200Billion.

Investors have been warned that the country’s “volatile political environment” occassioned by NASA’s refusal to recognize Kenyatta’s presidency is a risk to their investment.

The warning was issued by four global banks CitiGroup, Standard Bank, J.P. Morgan and Standard Chartered Bank enlisted to secure the multimillion dollar investment.

The report read in part that “Although some stability was achieved following the Supreme Court ruling in November 2017, political uncertainty remains as a result of NASA’s refusal to recognise Kenyatta as President”.

The prospectus further warned that the political stand-off could have far-reaching effects on capital markets, tourism and foreign investment, as well as Kenya’s economy.

As a result, Kenya’s ability to pay back its debts will be dependent of how the nation steers past the current crisis.

Kenya will be seeking a second round of investment by floating the Eurobond.

In 2014, the nation borrowed Sh 176 Billion to finance infrastructure and other projects. However, allegations emerged that a significant amount of it was lost through corruption.

Kenya’s debt has also grown significantly in recent years with each citizen reportedly having a debt of Sh100,000 should the current financing go through.

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janet ndila