Nairobi lockdown deals economy a heavy blow

Heavy police presence was witnessed on Moi Avenue, Nairobi during the Gen Z protest memorial on June 25, 2026. [Kanyiri Wahito, Standard] 

A massive security lock down of Nairobi on Thursday to mark the second anniversary of the 2024 Gen Z protests dealt a major blow to Kenya’s economy, shutting businesses and disrupting supply chains as the country struggles to stabilise its fiscal position.

Police blocked major roads leading to the capital and restricted access to the Central Business District ahead of commemorations of the deadly anti-Finance Bill protests.

The tax proposals, later withdrawn by President William Ruto after protesters stormed Parliament, had triggered nationwide unrest.

Public Service Vehicles were barred from accessing the city centre on Thursday, forcing many businesses and offices to close. The resulting loss of man-hours and productivity further strained an already fragile economic recovery.

Fears of looting and property destruction also prompted businesses in Nairobi and the Mt Kenya region to shut their doors amid intelligence reports warning that criminal groups could exploit the protests.

The Kenya Private Sector Alliance estimates businesses lose about Sh3 billion daily during street protests. Perishable goods traders, particularly flower exporters, are among the hardest hit, with exporters losing up to Sh200 million per protest because of  disrupted access to Jomo Kenyatta International Airport.

At least 13 counties, including Kajiado, Mombasa, Nakuru, Kiambu, Nyeri, Kisumu and Machakos, also experienced disruptions under heavy security deployment.

The Kenya National Chamber of Commerce and Industry said protests disrupt supply chains, raise operating costs and weaken consumer confidence.“These disruptions place a massive strain on already fragile business performance,” KNCCI said.

Private security

Many firms hired additional private security to protect property, adding to operating costs at a time when businesses are already under pressure.

The government also suffered revenue losses. Industry estimates indicate the Kenya Revenue Authority lost about Sh6 billion in tax collections during previous protest periods.

Nairobi contributes nearly 30 per cent of Kenya’s Gross Domestic Product and ordinarily generates between Sh70 million and Sh80 million daily for the county government. During the lockdown, collections reportedly fell by up to 81 per cent due to business closures and loss of parking revenue.

The exclusion of PSVs and digital taxis, which transport most city workers, forced many commuters to  walk long distances or seek alternative transport. Private sector estimates place the broader cost of lost productivity at Sh18 billion.

Inspector General of Police Douglas Kanja defended the roadblocks, saying they were necessary to prevent criminals from infiltrating peaceful protests.

“Officers were deployed to stop criminals from infiltrating peaceful protests to cause violence, loot and destroy property,” Kanja said.

However, critics, including the Law Society of Kenya, argue that police should isolate criminal elements while facilitating lawful demonstrations.

Analysts warn that recurring unrest raises Kenya’s risk profile, with businesses increasingly purchasing insurance against political violence and investors becoming wary of prolonged instability.