Manufacturers say Kenya is losing Ksh.2.86B daily due to anti-government demos

Kenya is losing Ksh.2.86 billion per day owing to the ongoing anti-government demonstrations, the Kenya Association of Manufacturers (KAM) has said.

In a statement on Friday, KAM chair Rajan Shah noted that the ongoing demos have dealt a significant blow to Kenya's manufacturing sector which has led to severe financial losses for businesses of all kind.

"Our manufacturing sector contribution to the Kenyan economy stands at about 1 trillion shillings as per the Economic Survey 2023. This translates to approximately 2.86 billion shillings daily in value addition," said Shah.

"Therefore, the country stands to lose up to 2.86 billion shillings daily if the protests continue to disrupt businesses as we have witnessed in the last two weeks."

He added that the demos have likewise disrupted logistics and supply chain networks hampering the ability to transport raw materials and finished goods thereby affecting the entire manufacturing process, leading to delays and increased costs.

"This directly impacts the availability of essential products in the market, leading to potential shortages and price volatility. This will not help alleviate the pain of the high cost of living and will instead increase it further," said Shah.

Kenya’s reputation as an attractive investment hub, Shah went on, is also at risk owing to the demonstrations.

"Investors rely heavily on a stable political and social environment that assures the safety of their investments whilst guaranteeing that business operations will not be disrupted," he said.   

"With an ambitious plan to grow the manufacturing sector contribution to Gross Domestic Product (GDP) threefold from the current 7.8% to 20% by 2030, we are concerned that this may not be achievable at the current trend."

While noting that Kenyans have the right to demonstrate peacefully, Shah noted that the demos should be done while safeguarding the safety and livelihoods of all Kenyans.

He similarly urged the Kenya Kwanza administration and the opposition to find an amicable way to resolve their differences while sympathizing with the families of people who have lost their lives during the demos.

"The Kenyan Constitution has sufficient ways to address grievances through various institutions such as Parliament, Judiciary, and other independent bodies," said Shah.

"We urge all Kenyans that, we have an equal responsibility to prioritize and maintain peace, stability, and the long-term well-being of our beloved country, Kenya."