Investors Diary

Dear Investor,
Welcome to sample a collection of my thoughts, research, financial advice, gut feeling and other works that i love to share with you from time to time.

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Wednesday, February 27, 2008

The Aftermath of Election 2007 on economy

The Nairobi Stock Exchange will remain volatile for most of 2008 reflecting the turbulence in the political arena that has been witnessed since the announcement of the controversial December 27 General Elections.

Most companies are now bracing themselves for downsizing and other restructuring measures geared towards cost cutting and enhancing profit margins.

Reduced Profitability
The profitability that has been witnessed in most banks at the beginning of the previous years quarterly results may be no more and by and large greatly reduced.

Economic Growth
The economic growth rate although deemed to remain resilient may not be sustainable if the spate of violence continue into the next quarter of the year and the government revenue collections will be greatly hampered.

Pillars of Vision 2030
The pillars of Vision 2030 that had been lauded to steer Kenya into rapid economic growth phase including Business Process Outsourcing (BPO), Information technology, Tourism and telecommunication are now reeling from the effects of the post election violence.

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