Great business prospects in a tough political environment

The business community can be excused for being cautiously optimistic and taking a long-term view, even in hard economic times.

In the midst of the prevailing political chaos blamed on the Supreme Court’s decision to annul President Uhuru Kenyatta’s victory in the August 8 election, some investors are cutting smart deals that are likely to give them a head-start over their competitors when the crisis is resolved.

This is perhaps a business strategy that has the potential to turn challenges into opportunities.

Among the risk takers was a delegation of 15 members of Pakistan’s Gujarat Chamber of Commerce and Industry, who were in Kenya this week on a three-day visit seeking partners in several business lines, including agribusiness, leather, textiles, jewellery, electrical appliances and furniture.

TRADE

The Business Daily reported that talks between the Pakistanis and officials of the Kenya National Chamber of Commerce and Industry centred on promoting trade between the two countries.

The trade between the two, which is in favour of Pakistan, was valued at $572.8 million last year.

The largest share was accounted for by tea exports and rice imports from Pakistan.

While Pakistan seeks to expand and diversify its exports, our challenge is to diversify exports to reduce the trade deficit.

SUPERMARKETS

In the supermarket business, the greatest news is the entry of Souk Bazaar, an Arabian retailer that has opened its first store at NextGen Mall in Nairobi.

The new investor, which has taken the space vacated by Nakumatt, has seen a viable opportunity despite the financial crisis facing Nakumatt and Uchumi supermarkets.

Another investor, Carrefour, is opening its third store at TRM Mall, also on space previously occupied by Nakumatt.

The French retailer, which entered the market in 2015, has embarked on an ambitious expansion programme.

HOTEL INDUSTRY

The hotel industry also hosts exciting new investments.

They include City Lodge, a South African hospitality group, which is opening a 172-room facility at the prestigious Two Rivers Mall.

The hotel chain, which also runs Fairview Hotel and Town Lodge, is expanding its footprint in Kenya and the East African region. 

Several other hotel chains are expected to enter Kenya or expand operations in the coming months.

TECHNOLOGY

The technology industry has Safaricom making investments in expanding high speed home Internet services.

Even development partners have woken up to the reality that Kenya is open for business and programmes.

Presumably, the increased predictability of the outcome of the October 26 repeat presidential poll gives the high-profile investors some measure of confidence.

Economic sanity will quickly be restored with the installation of the president.

ELECTIONS

Investors could also be learning how to do business in countries such as Kenya that have periodic spikes of political activity but remain viable investment destinations.

Despite the election chaos every five years, Kenyans quickly forget their political differences and settle down to do what they know best in business or employment.

The political environment may appear volatile but there’s always a sad or happy ending — depending on the payoffs for each party to the political contest.

Indeed, politics is less of a crisis in a country that has more urgent problems to solve.

THREATS

One of the greatest threats to Kenyans’ survival is drought, which has ravaged the country in the past three years.

The government’s rapid response through investments in social protection, livestock and agriculture programmes, has eased suffering.

Deepening critical interventions, particularly, in the marginal areas will reduce the agony that comes with loss of livelihood.

While politics and economy usually don’t mix, the government has a moral obligation to invest more in human security.

The payoff is much greater than for the billions of shillings being spent in endless political gambling.

Mr Warutere is a director of Mashariki Communications Ltd, [email protected]