Investors see heightened risk in Kenya amid anti-government protests

Overseas investors and companies see heightened risks in Kenya following the political chaos that has gripped the country since June, with turmoil threatening to spill over into the economy if there is a flight of foreign capital.

Kenya's fiscal outlook has darkened since sweeping tax hikes were scrapped in June, with anti-government demonstrations and political turmoil adding to uncertainty that could ultimately weigh on borrowing costs and the shilling. Experts say foreign investors and companies may be right to reconsider their stance as social unrest continues and the government scrambles to raise new funds, raising risks for both holders of government debt and corporates with a Kenyan presence.