Alarm over economic setbacks amid anti-government protests

Dr Eric Ruto, President, Kenya National Chamber of Commerce and Industry. [File Standard]

The Kenya National Chamber of Commerce and Industry (KNCCI) has raised alarm over the economic setbacks arising from ongoing protests across the country.

This, they note, has led to major business and economic disruptions for the country and the region.

The chamber reported staggering losses, including Sh40 million in export revenue and a troubling 17 per cent decline in overall export activity.

KNCCI President Eric Ruto voiced deep concern over the violence accompanying the protests, which has led to widespread looting and property destruction, severely disrupting businesses nationwide.

The disruptions have critically disrupted supply chains, causing a ripple effect of increased operational costs and significantly dampening consumer and investor confidence.

These challenges compound the economic vulnerabilities already faced by Kenya, aggravating the strain on its economy.

Dr Ruto added that the Nairobi Securities Exchange (NSE) has witnessed a substantial loss of Sh63 billion in investor wealth over the past fortnight, reflecting declining confidence in Kenya’s economic stability amidst the unrest.

“While we uphold the right to protest as enshrined in our Constitution, the violence and property destruction witnessed are deeply concerning,” remarked Ruto.

KNCCI called upon the government to swiftly address the grievances of protestors and restore calm to facilitate a return to normalcy. The chamber emphasized the imperative of preserving national integrity and protecting the well-being of citizens and businesses alike as a collective priority. Kenya’s Tourism Board Chief Executive Officer June Chepkemei urged citizens to exercise their democratic rights cautiously, mindful of the profound impact on the economy.

In response to escalating unrest, the Ministry of Tourism has urgently called for resolution, recognizing the potential detrimental effects on the vital tourism sector.

Tourism and Wildlife Cabinet Secretary Alfred Mutua,reiterated Kenya’s readiness to welcome tourists despite recent disruptions.

Emphasising the sector’s crucial role in the economy, the CS highlighted its substantial contributions, aiming for continued growth with projected tourist numbers expected to rise significantly.

“Tourism contributed about Sh353 billion to the Kenyan economy last year and has been on an upward trend.”