Kenya threatened with ‘constitutional crisis’

Bloomberg

Kenya is lurching towards a constitutional crisis as a standoff deepens between the two presidential candidates over how to manage a rerun of last month’s botched election.
Both sides have entrenched their positions: Raila Odinga’s opposition coalition has called mass protests starting Tuesday to demand the electoral commission is overhauled before the vote takes place, while President Uhuru Kenyatta’s ruling party rejects any changes to the authority and says the ballot must take place by October.
The impasse raises the risk that the election won’t take place at all, a situation the constitution does
not envisage.
“If the parties retain their hard-line stances, there will be a constitutional crisis,” Charles Kanjama, managing partner at Muma & Kanjama Advocates, said in Nairobi.
“It’s very important that all political actors show sobriety and realise that the country can’t afford their political games, endangering our peace and security.”
The uncertainty about the election outcome has unnerved investors in Kenyan assets, with yields on its Eurobonds rising 36 basis points since the September 1 court ruling to 6.38 percent on Monday. The shilling has weakened 0.4 percent against the dollar in the period. Previous disputes over elections in Kenya have led to violence, the most serious being in 2007, when clashes left more than 1,100 people dead and forced 350,000 more to flee their homes.
That resulted in growth slumping to 1.7 percent in 2008 from 7.1 percent a year earlier.
Outlook Clouded
The rerun became necessary after the Supreme Court on September 1 annulled the vote after finding the Independent Electoral & Boundaries Commission failed to conduct it in line with the constitution. The new vote is clouding the outlook for an economy that’s already slowing and risks tainting its reputation as one of Africa’s top investment destinations. Kenya is a regional hub for companies including General Electric Co. and Coca-Cola Co.
The commission has yet to announce how it will deal with the opposition’s demands to reconstitute its management. With only a month to go before the rerun, the commission has yet to announce which companies will provide the electronic voting systems and ballot papers required, after Odinga demanded that new suppliers be selected.