Pain of Sh3bn daily loss as major demo planned for Wednesday, June 25

Protests in Nairobi CBD/File

Shuttered windows greet you as you approach the corner building at the Tom Mboya street intersection with Haile Selassie, opposite the Easy Coach main bus station.

The once top-end designer shoe shop on the first floor of the building remains empty one year after it was vandalised during the anti-Finance Bill protest last year. The owner is yet to make a return.

This means the landlord has not generated any income from the space, which remains unoccupied.

Abul Karim is another businessman who was hit hard last year after anti-government protesters broke into his electronics shop in the Central Business District, carting away with stock worth more than Sh3 million.

“I am yet to fully recover, but at least with the help of my brothers who are in Dubai, I have managed to still keep the business alive,” he told the Star on Friday.

Some of the hooligans were captured on CCTV, with police last year arresting more than 270 people suspected of looting businesses in the CBD as they took advantage of a peaceful protest to loot. Several businesses in other major towns such as Mombasa, Naivasha, Nyeri and Eldoret were also looted.

A similar wave of looting is being experienced again this year, with the capital being the first to feel the heat anytime protests rock the country, with traders counting losses.

At Kimathi House within the Nairobi CBD, the aftermath of the looting witnessed last Tuesday was still evident over the weekend, with broken windows and glass lining the pavements.

Mohamud Ali who operates an electronic shop near Nation Centre, had his shelves wiped out, a spot check by the Star noted.

“The individuals were captured on CCTV and what we are asking the government is to have these people arrested. If things continue this way, then there is no need to run a business,” Ali said.

Gatecom IT Solutions along Moi Avenue is another business that has borne the brunt of the protests after a group of looters broke in and made away with dozens of laptops.

These are among businesses whose owners are counting losses running into hundreds of millions from the latest circle of looting, which also saw two cars torched around the Nairobi Cinema, in what is now becoming a pattern, happening during the budget month of June.

Businesses along Ronald Ngala Street, Kenyatta Avenue, Parliament Road, City Hall Way, Koinange Street, Tom Mboya Street, Muindi Mbingu Street as well as Haile Selassie Avenue have so far been affected, with most forced to close during protests as goons continue to capitalise on what has always begun as peaceful protests.

Businesses are estimated to lose up to Sh2.9 billion in forgone sales and looting per day of protests, according to private sector players.

“It is always a doomsday for businesses whenever there are anti-government protests. Remember, these are businesses that people have pumped millions into, some are still servicing loans then a business is wiped out. These businesses have also created hundreds of jobs, so the impact is massive,” Luthuli Traders Association chairman Peter Njoroge told the Star.

This year’s demonstrations have been a call for justice for teacher and blogger Albert Ojwang, who died in police custody on June 8, after being arrested in his Homa Bay home the day before.

Deputy Inspector General of Police Eliud Lagat, named as the complainant in the case, has since stepped aside to allow investigations.

While the protest begun as a peaceful call for justice, goons found their way into shops in yet another period that coincides with last year's anti-Finance Bill protests, with a major demonstration planned for this Wednesday in what has been termed as a remembrance day in honour of lives lost during demonstrations, including last year’s storming of Parliament where several people were shot.

The full financial impact of the latest protests and vandalism is yet to be fully assessed but losses are estimated to run into hundreds of millions so far, according to the private sector players.

Nairobi county, which collects about Sh35 million daily in revenue, has also been hit with the closure of businesses, with some of its infrastructure also vandalised. The county raised Sh12.8 billion in the financial year ending June 2024.

During protests, businesses are estimated to lose an average of Sh2.6 billion to Sh2.9 billion daily. This includes disruptions to operations and financial losses for businesses of all sizes, as well as instances of vandalism by protesters.

The manufacturing sector has also suffered as the supply chain remains disrupted during protests, which hinder day-to-day operations.

This has led to severe financial losses for businesses of all sizes, affecting not only their growth but also the livelihoods of their employees.

The sector’s contribution to the Kenyan economy stands at about Sh1 trillion as per the Economic Survey.

This translates to approximately Sh2.9 billion daily in value addition, an estimated amount lost during the protests.

“These disruptions have hampered 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,” Kenya Association of Manufacturers said.

KAM chief executive Tobias Alando yesterday said unlawful demonstrations are not good for businesses in the country.

“They attract bad characters whose intentions are always to loot and destroy properties. Such scenarios are not good for investors and disrupt the movement of goods and raw materials for the manufacturing process. We urge all concerned parties to embrace dialogue and to express their grievances peacefully. Every life counts,” Alando told the Star on the telephone.

The Kenya Private Sector Alliance has also expressed concern over the escalation of the disregard for the rule of law, leading to the deaths of Kenyans and vandalism on businesses.

According to Kepsa, the business community has been actively working closely with the government and other stakeholders to create a conducive business environment both inwardly and globally.

As a result, Kenya has grown into an attractive destination for business and foreign investment.

“We need to ensure these efforts are not watered down so that businesses do not shut down due to the escalation of emotions and public unrest. To the youth, we acknowledge that you are an integral part of the business community, whether as entrepreneurs, employers or employees. The private sector remains committed to addressing all concerns that will ensure the lives of all Kenyans are protected and sustainable jobs are created and maintained,” Kepsa leadership, led by CEO Carole Kariuki, said in a statement.

With nationwide protests being planned for Wednesday, June 25, the business community remains anxious even as police move to assure that they will provide security, amid the launch of investigations to arrest those behind the latest wave of looting.

“For the 25th, we have got what we call enhanced plans for that,” Nairobi regional police commander George Seda said during a presser, confirming that authorities had received a formal notification about the planned protests.

“What I would like to urge the public is, let’s restrict ourselves to what we call peaceful demonstrations. Let us not have demonstrations that are going to interfere with other people who may not be part of the demonstrators. Remember, it will be a working day, we will have other people operating shops, hotels and even at bus stations,” he added.

The matatu industry last week said it was losing 40 per cent revenues to demos, as it called for an end.

Matatu Owners Association president Albert Karakacha said, “ Some of us paid loans and did not meet our obligations on Tuesday. We urge the government to bring all stakeholders together, including churches, the business community and even leaders for national reconciliation to save our country from anarchy.

With an average of 25,000 matatus operating in the city every day, raking in an average of Sh15,000 per unit, mainly 33-seaters and above, it puts the industry’s daily gross earnings in the capital at an average Sh375 million and Sh11.2 billion monthly.

This means the industry lost about Sh150 million during last Tuesday’s demos as per MOA’s estimates.

“We condemn the goons who were hired to destroy businesses in town,” Karakacha said.

The matatu industry is also a significant source of employment, creating more than two million jobs. These include both direct and indirect jobs spanning from drivers, conductors, mechanics and various other roles related to the operation and maintenance of matatus.

Countrywide, there are about 60,000 matatus and buses operating on a normal day with the industry making an average of Sh900 million daily, translating to about Sh27 billion monthly.

The industry also generates substantial revenue, estimated at over Sh300 billion annually.

Investors also 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, KAM said.

Last year, several electronic shops in Nairobi’s CBD were swept clean. All businesses located at Development House on Mfangano Street, the nearby Naivas Supermarket, and the adjacent restaurants were looted.

Uganda House building on Kenyatta Avenue, was burnt down last year, with businesses on its entire ground floor completely wiped out.

Supermarkets and other businesses across different towns were also vandalised, leaving traders in losses.

Abdirazak Ahmed, who runs an electronics shop along Luthuli Avenue, said he is yet to fully recover from last year’s looting during the anti-Finance Bill protests.

"I lost a lot during last year’s protests, and now here we are again. We plan to move out our stocks to safer storage until after the June 25 demo,” he said.