Expect inflation to rise during the election period as politicians pour money into the economy.
Campaign insiders predict that political parties targeting not only the presidential seat but also senate and parliamentarian positions for their candidates will spend up to about $100 million to $150 million in campaigns.The coming election could result in more than $500 million injected into the economy, a financial stimulus that could spark inflation.
A majority of the presidential contenders are already flexing their financial muscles. By the end of last year , Peter Kenneth is said to have raised at least KES 2.5 billion for his campaigns. Raphael Tuju has raised close to KES 3 billion and Professor George Saitoti, who has also indicated that he will be vying for the presidency, is believed to have set aside KES 2 billion for his presidential bid. Click here to read a related post on: How Much It Would Cost to Gain Occupancy of State House
This money is likely to end up in the pockets of small and big business owners as well as well-placed consultants who will splash the cash on publicity, merchandise, travel and operating campaign secretariats. A huge chunk of the money could also land at the grassroots level as the politicians attempt to woo voters.
Statistics gathered from Africa Review