Nairobi businesses close shop as anti-government protests disrupt operations

The majority of businesses remained closed Tuesday in Nairobi and major towns in the country as anti-government protests resumed, leading to revenue loss for both businesses and county governments.

In the Nairobi Central Business District (CBD), the few that opened their doors saw minimal sales as many stayed at home, even as the CBD became the epicentre of running battles between protesters and the police.

Even roadside sellers and hawkers of fast-moving consumer goods such as food, electronics, clothes and other goods were nowhere to be seen.

Public Service Vehicles (PSV) operators were also forced to lower their fares, as they tried to woo the few workers who were travelling to the CBD for work and other engagements.

Within Nairobi residential areas as well as the CBD, most PSVs were parked, meaning the operators will lose the thousands of shillings that they collect to ferry passengers to and from the CBD daily.

The protests, led by the Gen-Zs, erupted last month as public anger against the controversial Finance Bill, 2024 hit a boiling point.

Since then, despite being passed by Parliament, President William Ruto refused to sign the Bill into law in a bid to cool the protests.

The Head of State also dissolved his Cabinet a few weeks later, to meet part of the wider demands for drastic reforms in the government to curb wasteful spending.

But the latest round of protests appears to be fueled by public anger against how the police responded to last month’s protests, particularly enforced disappearances of vocal voices supporting the demonstrations.

It is unclear the financial magnitude of losses incurred by private businesses, but during last month’s protests, the Federation of Kenya Employers (FKE), a lobby for employers, noted that the closure of businesses in Nairobi and other major towns would not only affect the livelihoods of business owners and their employees but also the economy.

Effects of Covid-19

“Businesses have not fully recovered from the effects of Covid-19 and the Finance Act 2023, which had a far-reaching impact on their operations. The current protests exacerbate these challenges, creating an environment of uncertainty and anxiety among employers, employees and Kenyans as a whole,” said FKE Executive Director, Jacqueline Mugo.

The Kenya Association of Manufacturers (KAM) also termed the situation volatile noting that many businesses had closed operations, but noted that for business owners, it was a balance of whether to lose business for a short period and achieve better outcomes in the long run.

“This is a tight balance because when this happens, many people will not carry out their duties, but again since the conversation is about economic issues that affect businesses, it’s a balance of losing business today and what is to be achieved in due course, depending on the point from which different people are looking at it,” said Mr Antony Mwangi, the KAM CEO.

Besides private businesses, the Nairobi County Government has also emerged as one of the biggest losers in yesterday’s demonstrations. The county relies on individuals and businesses to raise its own revenue, which supplements its receipts from the national government.

The city collected Sh3.81 billion own-source revenue in the six months to December 2023 which marked the first half of the financial year 2023/24.

This translates to a revenue collection of about Sh20.8 million daily, with parking fees being the county’s top own-source revenue stream.

But with thousands of motorists staying away from the town, the city’s parking revenue took a hit, while other revenue streams that are collected from businesses monthly were largely unaffected.

Parking fees topped the county’s revenue during the half-year period, with the city collecting Sh872.6 million from motorists.

The county also reaps big from land rates, issuance of single business permits, income from rental houses, issuance of building permits, and billboards and adverts.

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