The Kenya Association of Manufacturers (KAM) has revealed that the ongoing anti-government demonstrations led by Azimio la Umoja have resulted in staggering losses amounting to Sh2.8 billion for the 14 sectors they represent.
The demonstrations, which began on Wednesday have had a profound impact on the manufacturing sector, causing widespread disruptions and hampering day-to-day operations for numerous businesses.
KAM Chair, Rajan Shah, expressed deep concern over the adverse effects of the protests on the manufacturing industry.
"The ongoing protests have dealt a significant blow to the manufacturing sector. We share the pain of most of our members who have reported that numerous businesses have experienced disruptions, hindering their day-to-day operations," Shah stated.
One of the major challenges faced by manufacturers during these times is the lack of insurance coverage against political violence. As of now, insurance companies are yet to report on claims made by affected businesses.
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The manufacturing sector has been a pivotal contributor to the Kenyan economy, accounting for approximately Sh1 trillion, according to the Economic Survey of 2023. This translates to an estimated daily value addition of around Sh2.86 billion.
Chairman Rajan Shah highlighted the grave implications of the continuing protests revealing how much more the economy is bout to lose should the demonstrations continue.
"Therefore, the country stands to lose up to Sh2.86 billion shillings daily if the protests continue to disrupt businesses as we have witnessed in the last two weeks," he said.
Moreover, the demonstrations pose a threat to Kenya's goal of attracting foreign investment. Investors often seek stable political and social environments to ensure the safety of their investments and the uninterrupted continuity of business operations.
Consequently, Kenya's reputation as an attractive investment hub is at risk, potentially deterring potential foreign investors.
In light of these developments, the Kenyan government is facing mounting pressure to restore calm and ensure a conducive business environment.
Business leaders are urging authorities to address the underlying issues driving the protests, while also ensuring the protection of businesses and their operations.
As the nation strives to regain its stability and attract foreign investments, it is evident that immediate action needs to be taken to alleviate the impact on the manufacturing sector and restore investor confidence.
The resolution of these challenges will not only determine the short-term recovery of the industry but also have far-reaching implications for Kenya's economic growth and stability in the long run.
