Various ODM Kenya luminaries have been quoted in the press saying the market activity seen today is drug money being laundered. More recently they say on coming to power after this year's election they will reverse all IPOs (or more specifically government sale of shares) undertaken under the present government. This is a troubling trend and has grave implications for property rights in this country going forward. I hope someone points out the great damage to the economy if these statements are seen through.
I'll speculate how the reversal can be achieved. One way is to buy all the shares back and revert to full government ownership. I'm not sure if this would be the best use of resources given that our hospitals and schools still need plenty more supplies. Another way would be to just nationalize the companies, ignore the current shareholders and just move in. Just have a look at Zimbabwe and see what that idea did to the economy.
I hope these are just statements made in the heat of the moment and nothing more. We are in an election year, politicians will be shooting from the hip and all manner of statements should be expected. My view is carry on with your life, do your thing as reason will prevail as the dust settles after this year's election.
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