ICEA LION Asset Managers call on next govt to prioritize policy transformation

NAIROBI, Kenya April 12-ICEA LION Asset Management firm has called on the next government to adopt fiscal policies that are favorable to private sector-led growth, support farmers to improve food security, and create job opportunities for the youth.

The asset management firm also urged the next leadership to enhance corporate governance policies in the private and public sectors to boost confidence in the financial markets as well as support the capital markets deepening initiatives.

Speaking at a forum held on Tuesday, Esther Muchai, ICEA LION Asset Management’s Senior Portfolio Manager said that the next leadership must strongly focus on transformation in order to power the economy off the election trough.

The firm noted that election years globally have largely been characterized by higher debt levels, reduced revenues, slowdown in business capital expenditure, postponement of regulatory decisions as well as decreased lending activity and this has not been any different in Kenya.

Kenya’s GDP growth in the years 2002, 2008, 2013 and 2017 declined to 0.2, 0.5, 3.8 and 3.8 per cent respectively.

“This trend is likely to continue in the period around the 2022 elections, with the decline likely to be exacerbated by base effects and the pandemic,” said Muchai.

The firm also urged the business community should continue to participate in policy formulation, support initiatives that increase internal consumption of manufactured goods and value addition e.g. Buy Kenya, Build Kenya, enhance corporate governance and ethical business practices.

“A peaceful Kenya is important for the optimal performance of various sector of our economy as well as our private lives. Kenyans have to be deliberate about keeping the peace to minimize the impact of the election cycle, so that the economy remains vibrant throughout, regardless of political activity,” said ICEA LION Asset Management CEO Einstein Kihanda.