Kenya: Nation Loses Billions Due To Election Turbulence

Kenya has lost about Sh50.07 billion as a result of economic slowdowns during election years since independence, an analysis of economic and election data since independence reveals. This amount is almost seven times the government expenditure on housing development and human settlement in the 2015/2016 fiscal year.

It is also more than 10 times what has been allocated to industrial developments and investments in the current financial year, according to the analysis by Nation Newsplex and Institute of Economic Affairs.

The losses, which were calculated using the value of the shilling in 2014 and adjusted for inflation, found that in both single and multi-party periods after independence, the GDP growth rates for all non - election years are higher than the average pace of GDP growth for all the years, including election years.

Over the single party period, 1963-1990, the difference between the average GDP growth rates inclusive of the five election years and GDP growth rate excluding the election years, is 0.12 per cent, which translated to a loss of Sh8.9 billion according to 2014 prices.

This amount is 12 per cent more than what the national government allocation to maternal and child health in the financial year 2015/16.

Source: Daily Nation