ABN - Kenya’s recent political uncertainty is damaging its business prospects, according to the World Economic Forum (WEF) Global Competitiveness Report 2017-2018.
The nonprofit foundation said the current prolonged election period is creating doubts among investors, despite ranking the East African nation five places higher than the previous year, placing Kenya 91st out of 137 countries.
Kenya’s recent presidential elections were marred by violence on the streets, while the results from the vote were annulled by the Supreme Court after claims that the voting system had been compromised.
The rerun of the election vote has since been delayed to October 26.
“Elections in 2017 in Rwanda, Kenya, Liberia, and the Democratic Republic of Congo have increased volatility and uncertainty in the African business environment,” said the report.
However, the study did highlight the strengths of Kenya’s business environment, with a very efficient labour market (ranked 27th) and strong innovation (37th). It’s overall position of 91st was its second highest in a decade.
Meanwhile, Mauritius (46th) was ranked the highest for business competitiveness across the continent, followed by Rwanda (58th) and South Africa (61st).