The Kenyan government has revealed that the country is losing an estimated Ksh 3 billion every day due to violent protests that have swept across the nation. This revelation comes in the wake of the June 25th demonstrations, held to mark the anniversary of last year’s protests, which left a trail of destruction in at least 25 counties.
Thousands of business owners woke up to find their premises vandalized and looted, with losses running into millions. For many micro, small, and medium-sized enterprises (MSMEs), these protests have been a death blow, with some now staring at permanent closure. The government says MSMEs, which form the backbone of the economy, are the worst hit by the chaos.
“These protests are not only a security issue but an economic one,” said Mang’eni, a senior government official. “Businesses are sinking, jobs are being lost, and investor confidence is waning.”
To cushion businesses from future shocks, the government is considering a number of interventions, including working closely with insurance underwriters to create protest-related risk coverage. However, this poses a significant challenge. According to the Insurance Regulatory Authority, over 60 percent of MSMEs in Kenya are not insured, leaving them vulnerable to losses with no safety net.
In a bid to streamline support, the government has also announced plans to facilitate the registration of MSMEs for better coordination, access to services, and protection mechanisms.
Meanwhile, banks are bracing for an uptick in non-performing loans (NPLs), with many business owners unable to meet their loan obligations due to destroyed inventory and interrupted operations. Financial institutions are already flagging increased credit risk as uncertainty looms over future protests.
As Kenya grapples with the financial toll of civil unrest, economists warn that without urgent policy responses, the economy may suffer long-term damage. With MSMEs contributing significantly to employment and GDP, their collapse could spell wider social and economic instability if left unaddressed.
