Nairobi attack a blow for Kenya tourism

Bloomberg

The attack on an upmarket hotel complex in Kenya’s capital that claimed at least 14 lives may impact the East African nation’s key tourism industry, which was recovering from a wave of extremist assaults earlier this decade.
Al-Qaeda-linked militants in Somalia have claimed responsibility for the terror attack on 14 Riverside in Nairobi, their first significant assault in Kenya since killing at least 147 people at a university in the northeast in April 2015. The tactics echoed their September 2013 attack on the Westgate Mall, also in the capital, that left at least 67 dead.
Tourism is Kenya’s largest source of foreign exchange after agriculture and earnings climbed about a third year-on-year in 2018 to $1.54 billion shillings ($15.1 million).
It was an apparent sign of confidence that the threat from al-Shabaab, which is thought to have committed more than 150 mainly small-scale attacks in Kenya since 2011, had waned.
Robert Besseling, Executive Director, EXX Africa, says, “Al-Shabaab has selected a target that is highly symbolic of Kenya’s economic success and its latest attack is aimed at undermining foreign investment and the recovery of the country’s tourism sector.”
The latest attack on foreigners, international companies, and hotel assets is likely to trigger a fresh review of travel advisories by countries such as the US that will have a significant impact on Kenya’s tourism sector.
Kenneth Minjire, Head of Securities, Genghis Capital, says, “The biggest hit will be on Kenya’s tourism, which had posted great recovery during the last two years. The shilling and the stock market may face a short-term knee-jerk reaction, but investors and traders will soon settle down.”
Omar S. Mahmood, Researcher, Institute for Security Studies, says, “Even if there have not been major incidents in Nairobi in recent years, al-Shabaab remains a sophisticated and determined actor, which still has its sights on the city.”