Economy
Banks, supermarkets feel the heat from anti-government protests
Wednesday July 19 2023
Protestors light bonfires in Nakuru during countrywide anti-government protests on July 19, 2023. PHOTO | JOSEPH OPENDA | NMG
Banks in Nairobi and other key cities, including Mombasa and Kisumu have closed with only supermarkets as the only major businesses operating.
Several businesses, including hotels and shops, remained closed over anticipated unrest on Wednesday amid opposition-led protests.
A check showed most businesses in major cities across the country were shut down despite assurances from the Interior Cabinet Secretary Kithure Kindiki.
But supermarkets have remained open but recorded pockets of customers with a heavy presence of police officers and personnel from the National Youth Service keeping watch.
Businesses such as banks, are betting on online platforms to ease the economic impact of the disruptions.
The new wave of demonstrations is planned for Thursday and Friday as well. The protests are against the worsening cost of living crisis, exacerbated by the tax measures to fund President William Ruto’s first budget, among other grievances.
The government on Tuesday night announced the closure of all primary and secondary day schools within Nairobi, Mombasa and Kisumu cities over the protests.
Also read: Protests over new taxes unnerve global investors
Deserted PSVs count losses
Public service vehicles (PSVs) are counting losses on the first day of the new wave of protests, as a majority of workers remain indoors amid fears of violence breaking out.
Highways leading to the capital city and other key towns across the county remained deserted on Wednesday despite heavy police presence.
Should protests extend to Thursday and Friday, PSV owners servicing expensive bank loans used to acquire their fleet will be smarting from business losses.
Like other businesses, the protests have left PSV owners between a rock and a hard place with vehicles torched and pelted, throwing them into losses that have compounded their struggles to pay off bank loans.
Lack of operations is the latest blow facing the sector weeks after fuel prices hit sky-high levels, squeezing their near-stagnant revenues.
– John Mutua and Hellen Githaiga
