Lobby: Demos to cause Sh3b daily losses and up cost of living

KAM chairperson Rajan Shah, at a press conference yesterday, said the protests have created fear and uncertainty which has made it difficult for their staff to report to work.

He said considering the manufacturing sector's contribution to the economy stands at about Sh1 trillion according to the state's data bureau, the economy risks losing Sh2.8 billion daily as a result of the disruptions.

"We are in a lose-lose situation. There is no winner in such a scenario," he said.

The KAM chair was joined by board members Mary-Ann Musangi and former chairperson Mucai Kunyiha.

It was noted at the conference that several businesses have already borne the brunt of the protests through vandalism.

Ms Musangi noted that most businesses rarely go for political chaos-related insurance.

"It is not something businesses foresee," she said. "Many manufacturers and businesses are not insured for this kind of risk which makes the losses even bigger."

Mr Shah said the Constitution has provisions where such grievances, as being advanced by the opposition, can be addressed. He said though the Constitution provides for the right to picket, demonstrate and present petitions, this, he insisted, should be done peacefully.

He said the deployment of police daily to protect businesses is not sustainable.

"It is not sustainable to deploy such resources on day to day basis," he said "It is critical this (protests) should be done while safeguarding every Kenyan and without disrupting businesses."

The opposition-led protests announced by Raila Odinga are set to take place three days a week including Wednesday, Thursday and Friday. They are meant to pile pressure on President William Ruto's administration to address the high cost of living.

However, Shah said the ongoing disruptions have the potential of instead increasing the cost of living by altering the supply logistics of both finished goods and raw materials.

He noted delays already among KAM members as he expressed fears of demand erosion. Producers of fast-moving consumer goods (FMCG) are among those affected by the disruptions.

Mr Shah said the current environment is not helping in the government's shared goal with manufacturers to increase the sector's contribution to the country's gross domestic product (GDP) to 20 per cent by 2030.

The current contribution stands at 7.2 per cent.

"This may not be achievable with the current trend," he said.