Overview:
According to data released by Central Bank of Kenya, the companies and tycoons banked $527.8m in dollar accounts in the month of June as a way of securing their investments in anticipation of electoral violence in the August election.
Many top Kenyan businessmen and companies changed most of their money into dollars and secured it in dollar accounts in banks in anticipation of violence ahead of elections, data shows.
According to data released by Central Bank of Kenya, the companies and tycoons banked $527.8m in dollar accounts in the month of June as a way of securing their investments in anticipation of electoral violence in the August election.
Foreign currency bank deposits hit a historic high of Ksh891.5 billion ($7.4 billion) in June, up from Ksh829.5 billion ($6.9 billion) in May, making it the biggest monthly jump on record.
“The jump is big so I would not attribute it to the weakening of the shilling but rather hard currency conversions as we moved towards the elections with the risk of a protracted election in mind like was witnessed in 2017,” Churchill Ogutu, an Economist at IC Group, is quoted as saying.
Big business interests in Kenya range from banking, to manufacturing, construction, retail and wholesale concerns, farming, insurance, and media among many others. Quite a number of large corporations and wealthy business people rely heavily on political patronage to maintain a steady growth trajectory.
Kenya is also experiencing the rise of persons who use their political connections to secure government contracts for personal advantage.
It is believed it is these groups that sought to secure their money.
Deputy President William Ruto was on August 15 declared winner of a tight race to succeed two-term President Uhuru Kenyatta. Kenyans are hoping that the country remains calm, especially after it emerged that the Raila Odinga group rejected the outcome of the poll.
In 2007-2008, Kenya—which has East Africa’s largest economy—had to deal with a bloody and divisive election. Its ugly scenes badly disrupted business in most of the region, with Uganda bearing the biggest brunt.
Kenyans have been worried about the resurgence of the violent Mungiki gang that unleashed ethnic violence across the country after the 2007 poll.
A Human Rights Watch report published after the 2007 post-election violence blamed the group for reprisal attacks in Nakuru and Naivasha that targeted non-Kikuyus. Reports at the time claimed the group had infiltrated the police with support from influential politicians from the Central Province to help clamp down on anti-government elements.