In­se­cu­rity still a ma­jor threat to in­vest­ment

The Star (Kenya) - - Politics Parliament -

In­se­cu­rity re­mains a key con­cern for in­vest­ment, the Par­lia­men­tary Bud­get Of­fice has said.

The con­cerns have, how­ever, prompted the gov­ern­ment to take mea­sures to deal with the prob­lem. “Though re­ported ter­ror­ist at­tacks have some­what de­clined this year and tourism has greatly im­proved, both in­vestors and tourists re­main wary of se­cu­rity lapses.

The per­for­mance of th­ese sec­tors of the econ­omy may not be op­ti­mal,” a state­ment re­leased by the PBO says. It says se­cu­rity re­lated ex­pen­di­ture is a key item in the 2016-17 Bud­get for cush­ion­ing Kenya from at­tacks.

How­ever, dur­ing the first quar­ter of 2016, the econ­omy is es­ti­mated to have per­formed im­pres­sively, ex­pand­ing by 5.9 per cent com­pared to five per cent in the same pe­riod last year. This is at­trib­uted to a re­bound in the tourism sec­tor, which boosted per­for­mance in ac­com­mo­da­tion and food ser­vices.

Other sec­tors also recorded im­proved growth, ex­cept man­u­fac­tur­ing. The PBO said the un­cer­tainty about the 2017 elec­tions is wor­ry­ing and could ad­versely af­fect in­vest­ment, as fear grad­u­ally creeps in.

In the East African re­gion, the re­newed fight­ing and civil un­rest in neigh­bour­ing South Su­dan por­tends sig­nif­i­cant prob­lems for the Kenyan econ­omy. It says Kenya risks los­ing rev­enues.

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