The Kenya Private Sector Alliance (Kepsa) now says that the private sector is losing an average of Sh3 billion a day as a result of the ongoing demonstrations.
The demonstrations are occasioning subdued business activity across the country.
This amount refers to losses from lost business as companies choose to remain closed for security reasons.
Kepsa is calling for the restoration of normalcy across the country, even as Kenyans exercise their constitutional right to picket.
The association cites the need to support the recovery of the already struggling private sector following a host of shocks including COVID-19, spillover effects from the Russia-Ukraine war and the negative impact of the August 2022 general elections.
“Every time the country’s economic engines are closed for fear of theft and destruction from people who are taking advantage of the demonstrations, occasions unnecessary losses to the tune of about Sh3.0 billion daily. For a struggling economy, reeling from the effects of a prolonged drought, general elections, and economic slowdown last year and compounded by general global economic challenges, Kenya can ill-afford the political activities currently at play”, Kepsa says in a statement.
In the period between July 2022 and May 2023, the Kenya Revenue Authority (KRA) collected average daily tax revenue of Sh5.3 billion.
This means that a daily loss of Sh3 billion to the private sector is equivalent to 14 hours of average tax collection by KRA.
