Investors Express Fears as Political Tensions Threaten Business Stability

 

Perminus Kariuki of Nyota Njema Properties

As Kenya edges closer to the next General Election, a familiar mix of anticipation and anxiety is beginning to ripple across the business landscape, with entrepreneurs and investors alike weighing the potential impact of heightened political activity on the economy.

Historically, election periods in the country have been marked by a cautious “wait-and-see” approach from investors. While certain sectors temporarily benefit from increased political spending, the broader business environment often slows down as both local and foreign investors hold back on major financial commitments until the political dust settles. This hesitation typically constrains market liquidity, affecting expansion plans and day-to-day operations.

Players across various sectors now warn that the intensifying political campaigns could disrupt normal business operations, triggering a chain reaction that may ultimately weigh down the national economy. Many in the business community argue that the responsibility lies squarely with the government to safeguard a stable and conducive environment, ensuring enterprises can continue to operate and grow despite the political season.

These concerns and expectations came into sharp focus during a Nairobi event organized by Dependable Brands to celebrate women who have excelled in business. Even as the atmosphere remained largely optimistic, industry leaders did not shy away from highlighting the underlying uncertainties.

Nyota Njema Properties Managing Director Perminus Kariuki expressed concern over the rising political temperatures, cautioning that the gains made in maintaining a peaceful and predictable business environment could easily be eroded.

“The current political activities are beginning to threaten the stability that businesses have enjoyed for some time. If political acrimony escalates, we risk seeing businesses shut down or scale back operations, and ultimately, Kenyans will lose jobs,” Kariuki warned.

He also challenged the government to urgently settle pending bills owed to suppliers and contractors, noting that delayed payments continue to strain businesses financially.

“Clearing these pending bills will inject much-needed liquidity into the economy. It will enable businesses to meet their obligations, pay salaries, and settle financial facilities such as overdrafts,” he added.

Echoing similar concerns, Make-up by Rose CEO Rose Ntong’ondu pointed to the rising cost of doing business, which she said has already begun eating into profits and threatening the survival of many enterprises, particularly small and women-led businesses.

“We are already seeing the ripple effects. The cost of doing business has risen sharply and for many small enterprises, especially those run by women, it is becoming increasingly difficult to sustain operations,” she said.

On her part, Lucy Njambi, CEO of Great Mwanzo Properties, called on the government to fast-track key infrastructure projects, particularly road networks, arguing that such investments would unlock economic potential in underserved areas.

“When infrastructure is improved, even small and medium enterprises in rural areas can thrive. This will significantly contribute to economic growth and stability,” she noted.

Amara Realty Company Limited CEO Jane Baiyu urged the political class to exercise restraint during the campaign period and place the country’s economic interests above short-term political gains.

“There will still be a country to run after the elections. Leaders must tone down political tensions and focus on preserving an environment where businesses can survive and grow,” she said.

Despite the prevailing concerns, some stakeholders struck a more optimistic tone, pointing to emerging opportunities in both local and international markets. Ellen Tea CEO Rosemary Njuguna observed that demand for goods and services continues to rise, offering businesses a chance to expand if they can navigate the uncertainties.

Meanwhile, Rachael Wainaina, Founder and CEO of Film Village of Kenya, emphasised the untapped potential within the creative economy, particularly for young people and women.

“Supporting women-led enterprises can significantly drive socio-economic growth. The creative industry alone holds massive opportunities that can provide alternative employment for many Kenyans, especially if the government offers the necessary support,” she said.

She further highlighted the growing digital economy as a lifeline for many.

“Despite the season we are heading into, there are still numerous opportunities for youth and women in the digital workspace. With the right skills and support, many can build sustainable livelihoods,” she added.

As the country moves deeper into the election cycle, the message from the business community remains clear: stability, timely government action, and responsible political conduct will be critical in cushioning enterprises from disruption and sustaining economic momentum.