Security lockdown in Obama visit to disrupt businesses in Nairobi

Activity in Nairobi and its environs faces significant disruption when President Barack Obama’s entourage touches down at Jomo Kenyatta International Airport (JKIA) today.

Apart from interrupted flight schedules to and from JKIA and Wilson Airport, schools, colleges, shops, restaurants, commercial banks and supermarkets along Mombasa Road, Thika Road, Waiyaki Way and other major road networks are expected to remain closed as residents keep away from the city centre during Mr Obama’s visit.

“We regret to inform you that due to the visit by the US President, our Nairobi branches will close at 12 noon Friday 24th, and reopen on Monday 27th,” read a text message sent yesterday by CFC Stanbic to its clients.

Another one from Standard Chartered Bank said its branches around Westlands would be closed, but “all other branches will remain open for service”.

The Kenya Bankers Association (KBA) has asked those not be able to access their bank branches to use alternative banking methods, including mobile and Internet banking.

“A number of banks will be affected when their staff and customers have no access when roads are closed off. However, normal banking transactions can still be done off-branch for those with access to such infrastructure as ATMs, Internet banking or mobile phone transfer platforms,” said Habil Olaka, KBA’s chief executive.

However, mobile networks are also likely to experience congestion as more people resort to using their phones to transact business.

It also remains to be seen how activity at the Nairobi Securities Exchange (NSE) will be affected, as well as trading in bonds and currency markets.

Minimal staff

“There will be a definite slowdown in business given our under-developed road network and the fact that most major roads will be closed. Most businesses will either have closed or have minimal staff to keep things running on the surface, with the exception of the media,” said Faith Waitherero, an analyst at Standard Investment Bank.

With regards to currency, Ms Waitherero said the situation is unlikely to change in the short term, given that deals struck during the summit will most likely be long-term partnerships and not necessarily lead to immediate inflows.

During President Obama’s stay in the country, between today and Sunday, Kenya is expected to receive a major boost as regards to its visibility in global markets as a hub for African business.

“As a result, local innovators will have avenues opened up to get investors for their projects, as well as partners to help advance their ideas now and in the future,” said Waitherero.

“There will also be opportunities for skills transfer as entrepreneurs are exposed to better methods of production and of carrying out business operations. It is also an opportunity for Kenya to showcase what it has in terms of goods and services, as it rides on the worldwide media coverage of the summit.”

National carrier Kenya Airways added that the Kenyan airspace would be closed for 50 minutes between 7.45pm and 8.35pm today, and 5.05pm and 5.45pm on Sunday. Flights departing or arriving during these hours have been rescheduled.

“We request all guests on scheduled flights on the two days to plan their journeys to the airport well in advance and allow for additional travel time to JKIA,” added the airline.