A vender sells pineapples next to a second hand stall at the Gikomba market in Nairobi. Photo/courtesy.
Nairobi 7 August – Businesses in Kenya has faced serious challenges following Gen Z protests. In the past one month, Kenya has been experiencing unending nationwide protests staged by the youth agitating for good governance. As much as protests and picketing is a constitutional right, it has greatly affected businesses countrywide.
Businesses especially small and medium enterprises which are the key pillars of Kenya’s economy remained during the protests which affected their income while other were looted.
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According to Kenya Private Sector Alliance (Kepsa) businesses lost a average of Ksh3 billion every time the demos were held in the country.
Service businesses supporting major economic activities like tourism were hard hit when the government placed travel restriction. This meant there were no income for the employees who are in the sector.
In such situation when the country is in chaos, tourists will be discouraged to visit citing safety concerns. They may also develop a negative perception about the country.
During the recent protests, business operators especially within the Central Business District of major cities like Nairobi, Kisumu, Nakuru and Eldoret, also, in many other towns across the country were heavily damaged and looted.
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Business owners lived with fear of opening their businesses during protest, and if the business is closed, there is fear of looting due to much insecurity and destruction of properties and business premises which results in huge losses for them. The extent of this usually depends on the scale and duration of the protests, as well as the response from authorities.
At the end of these protests, the market structure faces harsh effects as it may go volatile in stock prices and currency value. Investors also shy away from channeling capital into the country considering the price fluctuation, liquidity crisis and exposure to other risks.
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