Sanlam: Kenya and regional economies To rebound after Elections

Sanlam Group Investment Economist, Mr Arthur Kamp has noted that the Kenyan and regional economies are exhibiting resilience ahead of the general elections with clear signs of a swift take off post August.

“Assuming certain conditions, this should hopefully be a good time to make your capital markets and related structured investments as the market is seemingly on an artificial lull, ahead of the general elections” Kamp said at an event organised by Sanlam Kenya and graced by the Nairobi Securities Exchange CEO, Mr. Geoffrey Odundo.

Kamp expressed that the local economy, we would think will grow as good as last year in the coming year based on economic and governance reforms proposed by the respective presidential candidates and a  solid foundation already set.

“In my estimation, GDP growth  should remain amongst the light of SSA economies in the next three years  if ongoing reforms as outlined in the Vision 2030 National development plan are maintained with zero tolerance for corruption and other investment limiting barriers,” Kamp said.

The local economy, Kamp said, will continue to enjoy moderate growth in the medium term if East African economies continue pursuing productivity enhancing measures such as the Standard Gauge railway projects in Kenya, Uganda and Tanzania.

Based on external macro-economic factors, Kamp, outlined the need to exercise caution to avoid raising the national investment ratios to unsustainable levels as such developments lead to “tears”.

He expressed regret that developing countries, will continue to walk a tight rope seeking to reduce their debt burden on one end while experiencing weak growth. Fundamentally, Kamp, stressed the need to progressively reduce the rate of external borrowing for non-productive economic programmes while raising domestic investment ratios.

In the African continent, Kamp noted that the East Africa region, has continued to enjoy a stellar growth track record since the global financial crisis.

While proposing the need to adopt a long-term economic structure to accelerate growth, Kamp, stressed the need for a manufacturing economy as envisaged in Kenya’s Vision 2030 national development plan.

A transition from a primarily agricultural oriented economic production to a manufacturing economy, he said, will provide significant gains.

Africa Sokoni