Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Kenyan retail confidence index rises in Q3-survey

Published 09/30/2010, 07:47 AM
Updated 09/30/2010, 07:52 AM

* Optimism due to new constitution

* Fall in crime improves sales

NAIROBI, Sept 30 (Reuters) - Kenyan retailers' confidence ticked up in the third quarter, with businesses expressing optimism about the country's future following the enactment of a new constitution, a survey showed on Thursday.

TNS Research International's quarterly survey showed its retailer confidence index rose to 150.7 in September from 113.7 in June.

"There is a continued increase in optimism among retailers about the future of Kenya, which may have been stimulated by the ratification of the new constitution coupled with political stability," TNS said in a statement.

"It appears there is a general decline in criminal activities in both urban areas and rural areas suggesting improved sale and profitability of retail business," it said.

TNS launched the retailer confidence index, often a good indicator of the health of an economy, in October 2009. The latest survey was conducted among 500 retailers, mainly owners or managers of retail businesses.

Kenyans endorsed a new constitution in a referendum last month, which they hope will address issues such as corruption, political patronage, land grabbing and tribalism, which have plagued east Africa's biggest economy.

Eighty-nine percent of rural and 86 percent of urban respondents said they expected business conditions to improve in the next six months.

The proportion of retailers who said they had been asked for a bribe in the past three months fell to 17 percent from 25 percent, the survey showed. "This implies a decrease in corruption in both urban and rural areas," it said.

Kenya was for years ranked as the most corrupt nation in east Africa by corruption watchdog Transparency International, but it fell to third place behind Burundi and Uganda in 2010.

A separate TNS consumer confidence survey last month showed a 21 point rise in the index to 136 in August, from 115 in June and 120 in March 2010.

"Corrupt officials and ineffective leaders were the greatest worry for retailers who are pessimistic about the future of Kenya," TNS said. (Reporting by Wangui Kanina; editing by George Obulutsa and Tim Pearce)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.