Ethic Violence in Kenya">Kenya Raises Concerns Among Investors

September 14, 2012

Kenya

This is the VOA Special English Economics Report.

A recent study shows that investors are concerned about conditions in Kenya. The nation is preparing for general elections in March twenty thirteen. But, the Kenyan business community is showing less confidence in the health of the country’s economy.

The Kenya Private Sector Alliance and the Synovate research group reported the findings. Synovate researchers talked to one hundred forty-five business leaders between July and August. A measure of the leaders’ confidence, or trust, was down fifty-three percent. That compares to between sixty and seventy percent a year ago.

Patrick Obath is chairman of the Kenya Private Sector Alliance, or KEPSA. It represents more than two hundred Kenya-based companies. Patrick Obath says investors’ trust has fallen because of recent ethnic violence and political problems.

PATRICK OBATH: “We normally do a survey every six months on the business community to look at the various indicators that show the way the economy is going and the kind of fears they have, so this is a regular thing that we do. But this particular one showed indications that there is obviously some pessimism about the economy as a result of the activities that normally lead up to the election.”

He also says he knows of some investors are withdrawing their investments. He says two behaviors could lead to economic problems before the elections.