IMF Ranks Kenya’s Business Environment as the Second Worst in the World
International Monetary Fund (IMF) has released a report ranking Kenya’s business environment as the second worst in the world behind Colombia.
The World Uncertainty Index (WUI) attributed Kenya’s business uncertainty to the rising political temperature in the country ahead of the August 9th general elections.
The report notes that the economic and political uncertainty in the country has risen sharply by 84 percent to 0.628 points from 0.34 in the second quarter of 2021.
The IMF team that compiled the report cited the electioneering period as one of the main sources of uncertainty, with most investors fearing an outbreak of unrest after the elections.
“A research that was done by WUI to measure economic and political uncertainty among 143 countries that represent 99 percent of the world’s Gross Domestic Product (GDP), showed that political uncertainty in Kenya is so high,” read the report.
The index uses a single source for all countries, allowing the IMF team to compare the level of uncertainty across countries.
“The index is constructed by text-mining the country reports from the Economist Intelligence Unit (EIU), a business intelligence company that provides country reports on a quarterly basis. These reports cover each country's economy, policies, and politics,” says the IMF.
The Covid-19 pandemic is also a source of uncertainty in Kenya, with the index rising to 0.452 in the second quarter when the country recorded its first Covid-19 case.
Last year, Central Bank of Kenya (CBK) Governor Patrick Njoroge stated that the Kenyan investment market is no longer threatened by rising political temperatures but by other unforeseen factors. He noted that the country has gone through many political risks and it has learned to deal with them.
“Coronavirus is the one that is the unknown. The others are in the realm of known unknowns,” Njoroge said as quoted by The Standard.
Comments (9)
Look who is talking. IMF is just jew blocks few the white house. We saw what happened in Jan 6, 2021. A pot calling a Kettle black.
Because none of the western countries have political uncertainty? Hell we've had and probably will have political uncertainty this November and two years hence. We had actual violence and dead people 18 months ago.
Kenya is definitely the worst place to start a business.
The police always show up to demand a cut of your money.
Then KRA & thieves.
Obviously, the two fake brothers, will see to it that there is chaos so that they can cling onto power and preserve their dynasties power and wealth of corruption impunity oppression and thieving! IMF does know something we don’t know!
It's just election fever. It says to be Colombia was the worst then us. Colombia is one of America favorite destinations so it can't be right. And Kenya can't be worse than Tanzania, Somalia, Djibouti, Burundi. The these sensational reports are just use less. Maybe report on Bill Gates giving money to Kenya and the WHO lab in KU. Kenya is heading for on a liberal downfall. Uhuru's family will sink Kenya like that Sri Lanka family
Well. This IMF is working very hard to keep what they have nicknamed Kenya and other African countries- third world.
Change is coming to Kenya!!. They ( the western countries) are scared of the Change because they do not know what that Change means for them.
If the Change benefits Kenyans, it's not good for investors!!
We are all waiting!! Whether we want it or not, it's on its way.
Kenyans are awake and the time for revelation and restoration is here.
The central bank keep rating the kenya shilling higher than it is worth. Kenya is longer able to fulfill its payment obligations in short term it is a matter of time when kenya go in default . diaspora dollar is most welcome. The central bank has given bank orders on reduction of the amount one can buy usd it will get worse because kenya will start printing money and that will down the kshs even more . we are going direction Zimbabwe like it or not argue about it but it is the truth, we stole too much and we still want to vote for the thieves success !!!
This is probably the damndest report ever. There are lots of other countries that are far worse than kenya.
What about Ukraine, Russia, DRC,south Sudan, Mexico, Colombia, Venezuela etc.??.
IMF, WB, all tools of US imperialism and hegemony. No third word country will ever prosper if this 2 institutions are involved. Unfortunately they are there to stay. Refer to Sri Lanka now, they are stuck with pocket change of these Bretonwoods institutions of only $50 billion.