Kenya gained a new constitution that should pave the way for long-term growth in the East African country. 

The vote’s outcome could help lower Kenya’s political risk profile, clearing the way for increased investment.

Provisional results published by the Interim Independent Electoral Commission (IIEC) showed that the new set of laws secured nearly 70% of the 8.2 million votes cast.

On Thursday, the shilling clawed back some of the recent losses it has made against hard currencies buoyed by the positive outcome of the vote helped. Commercial banks quote the Kenyan currency at 79.50 to the dollar, compared with Tuesday’s close of Sh80.

The bourse’s NSE 20 share Index gained 76.43 points to stand at 4667.47 points with price gains noted across the index linked stocks while NSE All Share Index (NASI) was up 1.29 points to settle at 102.16 points. 

Key among the changes in the new law is a shift in the way the government spends its money. The treasury will now have a lesser say because the new constitution vests the responsibility on new institutions.

Other sections address the thorny issues of land ownership, equitable distribution of economic resources, corruption, political patronage and tribalism. On land, the proposed law bars non-Kenyan citizens from having freehold entitlement to land and instead caps it at 99 years. This has caused concern among foreigners with freehold titles to large tracts and who will now be required to surrender their titles in exchange for leasehold ownership.

Business leaders say the new legal regime will prevent dynamics that tainted Kenya’s image and hurt the economy after the disputed 2007 presidential election. The vote’s outcome could help lower Kenya’s political risk profile, clearing the way for increased investment.

Source: Business Daily