The ongoing anti-government protests over the raging cost of living crisis are hurting Kenya's business environment and contributing to a decline in investor and consumer confidence.
If untamed, employers and players in the tourism sector warned Thursday, there may be a broader hit to the economy.
Consequently, they called for immediate dialogue between the government and opposition leaders to avert further economic fallout and possible collapse of critical sectors of the economy.
"The protests are hurting the economy and destroying the social fabric of our nation," said the Federation of Kenya Employers (FKE) chief executive Jacqueline Mugo.
The employers' lobby noted that companies are losing billions of shillings daily not only in lost manpower and productivity but also through disruption to business activities.
"Private sector recently indicated that we lose Sh3 billion each day of the protests," said Ms Mugo. "The frequent disruption to business operations, free movement of people, goods and services is bad for Kenya and we are slowly sinking into an abyss."
The lobby warned of possible job cuts if the disruptions are not arrested.
"The damage to Kenya's image cannot be easily measured but we are increasingly seen as unpredictable and in crisis," she said.
"For an economy that is dealing with huge challenges of high unemployment, high cost of living. food shortages, climate change, among others, the protests are worsening an already bad economic situation."
Ms Mugo warned that "Kenya's attractiveness to investors, tourists and businesses is diminishing by the day due to these actions."
Employers' sentiments were echoed by tourism players who warned the sector faces imminent collapse amid mass cancellations of bookings by global tourists due to mounting safety concerns.
Kenya Tourism Federation (KTF), a tourism sector lobby, consequently asked the government and opposition leaders to seek dialogue in a bid to rescue the fragile tourism sector that is slowly recovering from the impacts of Covid-19.
The lobby group revealed that as a result of the weekly demonstrations, the country has lost billions of shillings from tourism earnings due to cancellations of bookings by international visitors.
It said the current crisis has created "a bad and devastating environment for the tourism sector, which could bring it to its knees."
"Already, and as a result of the recent demonstrations and civil disobedience, the country risks losing billions of shillings due to massive cancellations by potential international tourists who were scheduled to visit the country during the ongoing high season, to the benefit of Kenya's competing neighbours," said KTF in a statement.
"Sadly, in the face of the looming three-day demonstrations... the country is staring at more likely colossal cancellations resultantly."
They spoke as businesses across the country incurred huge losses for a second day as a result of anti-government protests.
The transport sector, manufacturing, retail, and services sector were hardest hit by the disruption, many of which remained shut or experienced slow customer traffic.
Many outlets in Nairobi's central business district (CBD) remained closed while matatu operators stayed away for fear that the demos would turn chaotic.
The protests, according to opposition chief Raila Odinga, are meant to pile pressure on the Kenya Kwanza administration to address the rising cost of living crisis.
The opposition and their supporters have rejected the implementation of the Finance Act, 2023, insisting that some of the clauses, including the hike in taxes on fuel, would make the already high cost of living worse.
Other than the higher prices of fuel, which are expected to see the cost of most essential goods and services rise, the government is also implementing the affordable housing levy that many say will see a reduction in the disposable income of many Kenyans.
The return of mass action has sent jitters through the business community, which worries about the impact on their operations.
Traders fear any sustained unrest would cast a dark cloud over their operations and the local economy, which is already facing several local and external shocks.
Analysts have forecast political uncertainty could jolt investors at the Nairobi Stock Exchange (NSE).
Any political jitters linked to the sell-off of shares would pull down the NSE to new lows.
