Editorials
Stop protests, economy can’t afford uncertainty
Friday July 14 2023
Demonstrators engage in looting and destruction of properties of the Expressway along Mombasa Road at Mulolongo on July 12, 2023, during the anti-Government protests. PHOTO | WILFRED NYANGARESI | NMG
The Kenyan financial markets largely shrugged off disruptions caused by the opposition-led protests, recording gains in contrast with the business sector which suffered losses running into billions due to closures.
Analysts say the apathy of the markets to political protests is largely due to the influence of foreign investors who remain more concerned with global risks when making moves in frontier markets.
But it was not so for businesses. The Kenya Private Sector Alliance and the Federation of Kenya Employers in separate statements lamented the negative effect of the protests on businesses, saying that the stoppages are slowing the recovery of the economy.
While demonstrations are an expression of citizens’ discontent and frustration with the high cost of living and punitive taxes, a resolution to the political crisis must be found swiftly.
The damage caused by violent protests extends beyond immediate loss of property and livelihoods. It weakens the economy and stifles investment.
The economy cannot afford prolonged unrest and uncertainty especially coming at a time of slow recovery from the impact of Covid-19 amid global shocks from the Russia-Ukraine war.
Investors will become hesitant to commit capital, businesses will close shop, consumers will become cautious in their spending, and supply chains will experience disruptions, leading to reduced production and job losses.
Political leaders and other stakeholders must engage in dialogue and find a peaceful resolution to the crisis.
