Jeff Otieno
16 October 2007
Nairobi — ODM presidential candidate Raila Odinga yesterday said he would not interfere with the operations of the Nairobi Stock Exchange if he wins the December elections.
Mr Odinga's visit to the NSE offices at Nation Centre in Nairobi came two days after Finance minister Amos Kimunya said the NSE had made a record loss of Sh200 billion due to ODM's surge in the recent opinion polls.
But yesterday, the Lang'ata MP said he was a friend and not any enemy of the stock market.
Mr Odinga, who was received by NSE chief executive officer Chris Mwebesa and vice-chairman James Wangunyu said he had come to the NSE to set the record straight adding he had been quoted out of context on some remarks attributed to him.
According to the reports, Mr Odinga had said the stock exchange was fuelled by drugs money.
But yesterday, he said the comment he made about fighting money-laundering at a past meeting in Atlanta, US, was a general statement and not directed at the Nairobi Stock Exchange.
He spoke after Mr Wangunyu challenged him to set the record straight on his remarks.
"Mr Odinga, you stand accused by this market, and you need to come forward and give it confidence because the wealth at NSE is being eroded, and we are losing money. And if the trend continues, by December we will all be paupers," said Mr Wangunyu.
Is he a socialist?
He also said questions abound about Mr Odinga's presidency.
"What type of President will he be? Is he a socialist, communist, a democrat, a social democrat? Is he going to be a man of revenge or pursue reconciliation. Is he likely to take over assets which we have succeeded in building? Is he likely to nationalise privatised organisations? Is he likely to take wealth from others.? How certain are we with a Raila leadership?
"This is what is driving the market down and down everyday; the market needs to be reassured," he added.
Purchasing power
But in a press statement distributed to the media, Mr Mwebesa said a recent survey NSE conducted showed that investors were disposing their shares to increase purchasing power in response to rising prices of basic necessities and fuel.
He also said the political temperatures had also affected the market as traders adopted 'a wait and see attitude'.
Few kilometres away at the KRA headquarters, Finance minister Amos Kimunya stood by his earlier remarks that the NSE was losing billions of shillings due to what he termed as loose talk by the members of the Opposition.
"Many of the opposition politicians do not understand how NSE operates, it is not a fish market... It is more complicated than that and one of the most advanced in Africa," said Mr Kimunya.
The minister said investors were concerned about the seriousness of some contestants. "This is a group that has been saying if it gets into power, it will reverse all privatisation that has taken place. This has sent jitters to investors," he added.
Appease or flatter
But taking the podium to reply to the accusations, Mr Odinga, said he did not come to appease or to flatter anyone.
"I have come here as a friend of the NSE and as an investor who owns shares at the stock market. I am a businessman and owner of a successful company, which manufactures gas cylinders for the East African market," he added.
On whether he was a communist and adhered to teachings of the forefather of communism Karl Max, the Lang'ata MP said he was not, and has never been a communist. He had lived in a communist country before and understood the inefficiencies of public ownership, he said.
Understand issues
"I have an advantage that I have lived in both communist and capitalist countries so I understand the issues better," the ODM presidential candidate said.
Mr Odinga said he considered himself a social democrat, like former British Prime Minister Tony Blair and former German Chancellor Gerhard Shroeder.
"Social democrats believe in capitalism with a human face, " he told the workers and traders at the NSE.
The Lang'ata MP, who has been buoyed by recent opinion polls that showed he was the preferred presidential candidate, said the NSE had an important role in the economy. The latest poll gave him a 53 per cent popularity rating.
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