With next year’s general elections approaching and political leaders campaigning for votes, businesses face uncertainty about the future of their operations.
Historical patterns show that although certain sectors may benefit temporarily from increased political spending, the broader business environment tends to adopt a ‘wait-and-see’ attitude. Investors, both domestic and international, generally halt capital investments until election results are confirmed, resulting in reduced market liquidity.
Industry representatives in various sectors assert that intensified political activities nationwide could disrupt many business activities, subsequently affecting the broader economy.
Business leaders emphasize that the responsibility falls on the government to create a favorable environment for businesses to function and prosper during the upcoming election period.
At an event celebrating women who have excelled in various business sectors, organized by Dependable Brands in Nairobi, industry leaders expressed optimism that despite current uncertainties, tolerance will prevail and businesses will continue to grow.
Nyota Njema Properties Managing Director Perminus Kariuki, who attended the event, expressed concern that current political activities across the country are threatening the peaceful environment that businesses have enjoyed recently. He warned that political hostility will harm the nation’s economy, potentially leading to business closures, downsizing, and job losses for Kenyans.
Kariuki also urged the government to settle outstanding payments to alleviate financial pressure on businesses. He argued that releasing these funds promptly would improve liquidity and enable companies to meet their financial commitments, including salary payments and overdraft settlements.
Make-up by Rose CEO Rose Ntong’ondu echoed similar concerns, stating that the cost of doing business in the country has significantly increased, eroding profits and endangering many businesses. “We are already witnessing the consequences. The cost of conducting business has surged dramatically, and for numerous small enterprises, particularly those owned by women, it is becoming progressively harder to maintain operations,” she observed.
Great Mwanzo Properties CEO Lucy Njambi suggested that the government should expedite critical infrastructure projects such as road construction to further stimulate business activity, even in rural regions. “Through such initiatives, small and medium enterprises will experience growth and make substantial contributions to national economic development and stability,” she noted.
Amara Realty Company Limited CEO Jane Baiyu appealed to political leaders to reduce their political activities and focus on the nation’s economic advancement. She emphasized that politicians must recognize that they will still have a country to govern after the general elections.
Nevertheless, some business leaders expressed confidence that growth will come with the expansion of new markets. Ellen Tea CEO Rosemary Njuguna observed that demand for products and services, both domestically and internationally, is on an upward trend.
Film Village of Kenya founder and CEO Rachael Wainaina reiterated that supporting women-owned businesses will drive socioeconomic development in the nation. She asserted that the creative arts sector offers significant opportunities that could provide alternative employment for many Kenyans if the government provides adequate support.
Despite the challenges ahead, numerous opportunities exist for young people and women in the digital sector to improve their livelihoods, she added.
This article was originally published by Kiambu Observer.