Thursday, September 24, 2009

Kenya back in the woods?

Within one decade during which time Kenya experienced declining political risk after the successful 2002 elections, the country is back in the woods again, caught between heightened political risk—thanks to ethnic and social tensions with roots in inequality—and depressed economic growth outlook due to the effects of a changing climate and global economic recession. Unfortunately this is a very short time for the payoff to reforms to start bearing fruits and experience from countries as disparate as China, India and Vietnam suggests, such stability is needed for a minimum 10-15 years for positive long-run growth trends to take hold. With Obama’s administration having taken a very firm position on ending corruption and impunity in the continent, Kenya’s options are fairly limited.