As the dust settles down from a chaotic day of countrywide protests on Wednesday, businesses are now counting the cost of the demonstrations that disrupted their daily activities and caused wanton looting and destruction of property worth millions of shillings in some areas.
The Kenya Private Sector Alliance (Kepsa) has estimated the losses from the closure of businesses during the protests that rocked major towns including the capital Nairobi, Nakuru, Kisumu, Mombasa, Machakos and Kisii at about Sh3 billion.
The losses could get worse next week should the Opposition follow through with its threat to call for protests once a week, every Wednesday, a factor that would paralyse business activities and lead to losses running into billions of shillings.
Earlier, the Opposition had threatened to hold protests three days a week.
“From next week, we will have three days of protests from Monday to Wednesday until President Ruto listens to Kenyans,” said Nairobi Senator Edwin Sifuna yesterday.
Businesses ranging from public transport operators, second-hand clothes dealers, manufacturers, retailers and hoteliers are among those that have come out to lament the heavy toll of the protests that led to loss of productivity.
The losses extended to the public sector, where public property such as police vehicles, government offices and roads, including the Chinese-built Nairobi Expressway that was constructed through a public private partnership (PPP), were damaged in losses that will ultimately be borne by taxpayers.
Roads Cabinet Secretary Kipchumba Murkomen yesterday said that under Kenya’s agreement with Moja Expressway, the subsidiary of the China Road and Bridge Corporation that operates the road, taxpayers have to shoulder the cost of the damages within 28 days.
“The damage done to the Expressway in that short period of time could be anything up to $5 million (Sh707 million),” said the CS.
Retailers counted an estimated 30 per cent drop in sales, even as protesters broke into retail outlets including Quickmart and Eastmart and stole goods of undisclosed value. The Retail Trade Association of Kenya (Retrak), the umbrella body of retailers, said the sector lost up to Sh1.2 billion.
“We reported a decline of sales to the tune of 30 per cent in specialty retail. We estimate opportunity cost of the chaos was between Sh920 million and Sh1.2 billion in both modern and general trade,” said Retrak Chief Executive Wambui Mbarire.
As people stayed at home, public service vehicles (PSVs) operators estimate that they incurred losses of about Sh1 billion with thousands of drivers and touts, who are paid daily, going home with nothing.
“Our members were forced to park their vehicles because there were no passengers. If this continues, many of our members will default on their loans which could see them lose their vehicles,” said Matatu Owners Association (MOA) chairman Albert Karakacha.
Ms Teresia Njenga, the chairperson of the Mitumba Association of Kenya, says the demonstrations are leaving thousands of youth who work in the sector on roles such as selling, packing and unpacking of second-hand clothes jobless.
“On a day like yesterday (Wednesday), those young people came and went home without anything because traders stayed away. Can we really sustain this every week?” posed Ms Njenga.
She added: “We are really asking the government and the opposition to please embrace dialogue. People are really suffering.”
Hoteliers, who have only been recovering from the debilitating effects of the Covid-19 pandemic, are also counting losses as tourists and other visitors who had booked stays in the country cancelled their reservations.
“I can tell you following the re-emergence of demonstrations we, as a sector, are now seeing cancellations taking very major functions to destinations as far as Kigali, Cote d’ Ivoire and South Africa. It is really an unfortunate turn of events just when we thought we were bouncing back,” said Mr Mike Macharia, the CEO of the Kenya Association of Hoteliers.
Manufacturers say the demonstrations disrupted travel and logistics as well as dimming demand for the goods that they produce at a time they are already braving reduced sales due to high inflation.
The Kenya Association of Manufacturers (KAM) said the economic losses from the protests will diminish job creation, even as they continue to shoulder high taxation and increased cost of inputs such as fuel and electricity.
“KAM acknowledges that citizens have the freedom to peacefully express themselves, it is critical that this should be done without interrupting business operations and safeguarding every Kenyan,” said the lobby.
KAM added: “The disruptions have had a negative impact on manufacturers through loss of sales, disruption of travel and logistics affecting employees access to their places of work and manufacturers supply chain as well as damages and loss of properties such as vehicles, offices, shops, infrastructure, and outlets.”
The Federation of Kenya Employers (FKE) urged leaders to embrace social dialogue and pursue a win-win outcome, arguing that the protests are derailing productivity.
“The frequent disruption to business operations and free movement of people, goods and services is not good for the country. In addition, the workers’ productivity is depressed due to the anxiety and uncertainty that comes with the protests,” said FKE Chief Executive Officer Jacqueline Mugo.
The protests are a double blow to President William Ruto as they are coming at a time the High Court has temporarily frozen the implementation of the new tax measures in the Finance Act, 2023 pending the determination of the case. The government had hoped that the new tax measures would help yield about Sh289 billion in additional revenue, and Prime Cabinet Secretary Musalia Mudavadi says that each day that passes as the case drags in court, the government loses about Sh650 million.
