After a peaceful election and a rebound in growth, investor confidence in Kenya looks likely to rise. What’s more, barring political shocks and droughts, the Kenyan economy should grow robustly, in Standard & Poor’s Ratings Services view. However, political risks loom. There’s a cloud on the horizon in the form of International Criminal Court (ICC) indictments against the recently elected president Uhuru Kenyatta and his vice president William Ruto. Main points:
- · The recent elections held in Kenya in March went smoothly, with no repeat of the violence witnessed at the last election.
- · Nevertheless, the International Criminal Court indictment of the new president and vice-president remains a key risk.
- · Barring a political shock or drought, we believe the economy will grow steadily, with real GDP growth of about 5% in 2013.