The bitter dispute over the Kenyan presidency could have long-lasting economic repercussions, observers warn, fearing that financial turmoil could quickly derail a booming economy.
Considered an investor-friendly haven of relative stability on its way to becoming an "African Tiger," Kenya has experienced its worst political unrest in 25 years since a controversial presidential election last Thursday.
The crisis stemming from Kenyan President Mwai Kibaki's disputed re-election affects everyone from the financial powerhouses to people like Rose in the massive Nairobi slum of Kibera, where livelihoods are immediately under threat.
"First it was because of election day, then it was because they busy cheating on the results, we have had no electricity and no water for a week. Now there is nothing to eat," the 24-year-old mother of two said.
A few yards away, the Toi market was completely leveled by rioters who went on the rampage following the announcement of Kibaki's victory, which defeated challenger Raila Odinga said was obtained through widespread rigging.
"We had 3,000 traders here, as well as 3,000 other people employed on the market, which, if you include the families and the customers, means that 200,000 people depended on this place," Toi market trader's association chairman Ezechiel Rema said.
Millions of Kenyan shillings worth of basic food goods, shoes and clothes went up in smoke on Sunday night when marauding gangs of rioters set ablaze stalls reportedly owned by members of Kibaki's Kikuyu tribe.
Prices of basic goods have consequently more than doubled in the sprawling slum.
"The big men are fighting it out over the election, but if a compromise is not reached soon, we will just be left here to die," said 63-year-old John Okwiri, clasping a mangled container cap, the only object he could salvage from his little coffee shop.
With a series of national holidays granted by the government for the election, the Christmas holidays and the ensuing crisis, the country has been at an economic standstill for a week.
Fuel shortages were beginning to cripple businesses not only in Kenya but in neighboring countries such as Uganda.
Many imports needed by the Great Lakes countries arrive in the port of Mombasa and pass through the whole of Kenya before reaching their destination.
Business leaders hoped the turmoil would cause only a temporary economic blip in Kenya, which has boasted average growth of 5 percent for the past five years and is home to one of the world's fastest growing stock exchanges.
"Such violence does not augur well for business, as it leads to additional costs and deters investment," said Betty Maina, head of the Kenyan Association of Manufacturers.
The Kenyan shilling, which firmed up significantly against the US dollar last year, was expected to fall when markets reopened yesterday, as was the nation's stock exchange.
The darling of foreign investors in east Africa, Kenya will be lucky to emerge unscathed on an increasingly competitive regional scene, analysts said.
"Uganda and Tanzania must be quietly rejoicing, as they could be getting a bigger share of donor money," a senior official from a Nairobi-based pan-African bank said.
"What is certain is that Kenya's reputation has been dented ... but it's still very early to measure the impact, we'll see how markets react on Wednesday," the banker said.
Standard Chartered's chief Africa analyst, Razia Khan, said that the shilling and the markets could slump if the violence did not subside and a swift outcome to the political stalemate was not found.
"Although the economy has done well, the electorate has still indicated its preference for change, and perhaps an impatience that more should be done to tackle graft," Khan said.
The analyst stressed that despite the latest crisis, Kenya's economy was still vibrant and a parliament set to be dominated by the opposition "will create more pressure to deliver meaningful change, as quickly as possible."
Taiwan aims to open 18 representative offices and seven Taiwan Tourism Information Centers worldwide by next year to attract international visitors, the Tourism Administration said on Saturday. The agency has so far opened three representative offices abroad this year and would open two more before the end of the year, it said. It has also already opened information centers in Jakarta, Mumbai and Paris, and is to open one in Vancouver next month and in Manila in December, it said. Next year, it would also open offices in Amsterdam, Dubai and Sydney, it added. While the Cabinet did not mention international tourists in its
EYES AT SEA: Many marine enthusiasts have expressed interest in volunteering for coastal patrols, which would help identify stowaways and illegal fishing, the CGA said Six thousand coastal patrol volunteers are to be recruited for 159 inspection offices to enhance the nation’s response to “gray zone” conflicts, Coast Guard Administration (CGA) sources said yesterday. Volunteer teams would be established to increase the resilience of coastal defense systems in the wake of two unlawful entries attempted by Chinese over the past three months, Ocean Affairs Council Minister Kuan Bi-ling (管碧玲) said. A former Chinese navy captain drove a motorboat into the Tamsui River (淡水河) in Taipei on the eve of the Dragon Boat Festival in June, while another Chinese man sailed in a rubber boat into the Houkeng
NEXT LEVEL: The defense ministry confirmed that a video released last month featured personnel piloting new FPV drone systems being developed by the Armaments Bureau Taipei and Washington are pushing for their drone companies to work together to establish a China-free supply chain, the Financial Times reported on Friday. A delegation of high-level executives and US government officials were yesterday to arrive in Taipei to discuss with their Taiwanese counterparts collaboration on drone technology procurement and development, the report said. The executives represent 26 US manufacturers of drone and counter-drone systems, while the officials are from the US Department of Commerce and the US Department of Defense’s Defense Innovation Unit, along with Dev Shenoy, principal director for microelectronics in the Office of the Under Secretary of Defense
‘ANONYMOUS 64’: A national security official said that it is an attempt by China to increase domestic anti-Taiwanese sentiment and inflame cross-strait tensions The Ministry of National Defense’s (MND) Information, Communications and Electronic Force Command (ICEFCOM) yesterday denied accusations by China that it had undermined regional security by carrying out cyberattacks against targets in China, adding instead that Beijing was responsible for raising tensions and undermining regional peace. The Chinese Ministry of State Security on WeChat accused a hacker group called “Anonymous 64” of targeting China, Hong Kong and Macau starting earlier this year through frequent cyberattacks. The group carried out cyberattacks to seize control of Web sites, outdoor electronic billboards and video-on-demand platforms in China, Hong Kong and Macau, it said, adding the hackers’