According to the Kenya Association of Manufacturers (KAM), the country is currently experiencing a daily loss of Ksh.2.86 billion due to the continuous anti-government demonstrations.
The impact of these ongoing protests has been deeply felt in Kenya’s manufacturing sector, leading to substantial financial setbacks for businesses across various industries.
KAM Chair, Rajan Shah, highlighted the significance of the manufacturing sector in the Kenyan economy, stating that it contributes around 1 trillion shillings as per the Economic Survey 2023. This figure represents an estimated daily value addition of approximately 2.86 billion shillings to the economy.
In summary, the ongoing anti-government demonstrations are having a severe adverse effect on Kenya’s economy, with the manufacturing sector being hit hard and experiencing substantial financial losses of around 2.86 billion shillings each day.
“Hence, if the protests persist and continue to disrupt businesses as observed in the last two weeks, the country could potentially lose up to 2.86 billion shillings daily.”
Additionally, Rajan Shah pointed out that the demonstrations have caused significant disruptions to logistics and supply chain networks, impeding the transportation of raw materials and finished goods. As a consequence, the entire manufacturing process has been affected, resulting in delays and increased operational costs.
These disruptions directly impact the availability of essential products in the market, potentially leading to shortages and price fluctuations. This exacerbates the challenge of the high cost of living, rather than alleviating it, as Shah emphasized.
Furthermore, Kenya’s reputation as an attractive investment hub is now at risk due to the ongoing protests. Investors rely on a stable political and social environment that assures the safety of their investments and guarantees uninterrupted business operations. The current situation, therefore, poses a threat to Kenya’s economic growth and its ambitious plan to increase the manufacturing sector’s contribution to GDP from 7.8% to 20% by 2030.
Shah acknowledged the right of Kenyans to peaceful demonstrations but stressed that these protests should be carried out with due regard for the safety and livelihoods of all citizens. He urged the Kenya Kwanza administration and the opposition to find an amicable way to resolve their differences while expressing sympathy for the families who have lost their loved ones during the protests.
Rajan Shah also highlighted the availability of various institutional avenues, such as Parliament, Judiciary, and independent bodies, within the Kenyan Constitution to address grievances. Encouraging all Kenyans, he stressed the shared responsibility to prioritize and maintain peace, stability, and the long-term well-being of the beloved country, Kenya.
