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The Kenya Times
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Citizen Demonstrations in Kenya: Unraveling Their Impact on the Economy

According to KEPSA, the country is losing Ksh3 billion ($21 million) every day.

by James Wanjagi
July 21, 2023
Reading Time: 3 mins read
Citizen Demonstrations Hurting The Economy.

Photo of empty Nairobi street during demonstrations. PHOTO/CFM

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Kenya has been rocked by a series of citizen demonstrations in recent months, triggered by rising prices and economic hardship.

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Citizen demonstrations, often characterized by mass protests and public rallies, are a common form of civil expression in Kenya.

Over the years, Kenyan have utilized demonstrations to voice their grievances, demand social justice, and advocate for political reforms.

While these demonstrations play a crucial role in promoting democratic ideals and holding the government accountable, they also have a significant impact on the country’s economy.

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Anti-riot police battling protesters during demos. PHOTO/Courtesy.

Effects of Citizen Demonstrations

The protests have led to widespread disruption, with businesses forced to close and roads blocked. The economic impact of the demonstrations is significant. 

According to the Kenya Private Sector Alliance (KEPSA) the country is losing Ksh3 billion ($21 million) every day.

The demonstrations have had several negative consequences for the economy.

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First, they have disrupted trade and commerce. Road blockades, closures of markets, and transport disruptions during demonstrations can hamper the flow of goods and services, leading to a slowdown in economic productivity.


Also Read: Terryanne Chebet Pens Emotional Letter to Raila


Businesses have been forced to close or operate at reduced capacity, leading to potential job losses and a decline in economic activity.

Second, the protests have damaged infrastructure and other retail businesses.  Roads have been blocked and property has been damaged, which will require costly repairs.

Transport Cabinet Secretary Kipchumba Murkomen estimated the repairs for Nairobi Expressway at Kshs700 million. In addition, we have reports that protesters also looted three supermarkets in Nairobi.

Third, the demonstrations have created an atmosphere of uncertainty, which has discouraged investment and slowed economic growth.

Finally, Kenya’s economy heavily relies on tourism, which contributes significantly to the country’s Gross Domestic Product (GDP). Unfortunately, citizen demonstrations can deter potential tourists from visiting the nation.

Images of protests on international news channels can create a negative perception of Kenya as an unstable and unsafe destination.

Consequently, the decline in tourism not only affects hospitality businesses but also ripples through related industries such as transportation, handicrafts, and cultural activities.

Protester Threw Teargas Into Kangemi School - Machogu
Protesters clash with police during anti-government demos on July 13, 2023. PHOTO/Courtesy.

Government’s dilemma 

The government has taken some steps to try to address the economic concerns of the protesters. These include waiving taxes on certain essential goods and providing subsidies to farmers.

However, these measures have so far been insufficient to calm the situation. The protests are likely to continue until the government takes more decisive action to address the underlying economic problems.

The long-term economic impact of the demonstrations is difficult to predict. However, they have already had a significant negative impact. The government will need to take urgent action to address the concerns of the protesters and restore stability to the economy.

In addition to the economic impact, the demonstrations have also had a social and political impact. They have highlighted the deep divisions in Kenyan society and the growing frustration with the government.


Also Read: World Powers Mount Pressure on Ruto, Raila Over Protests


The protests have also raised questions about the future of democracy in Kenya.

What’s more, the protests are a wake-up call for the government. They show that the people of Kenya are not content with the status quo and that they are willing to take to the streets to demand change.

The government must now address the concerns of the protesters and find a way to restore stability to the country.

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Treasury CS Njuguna Ndung’u with Ministry officials ahead of budget reading. PHOTO/Courtesy.

 

James Wanjagi

Dr. James Wanjagi is a technologist, academician, strategist, and financial enthusiast and a contributor for The Kenya Times. He has a vast background in banking, fintech, and all things strategy. He is also the CEO, Iricon Consulting Group. James writes on matters finance and strategy.

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