The manufacturing industry in Kenya could lose up to Ksh2.86 billion in revenue daily if the country fails to find a solution to the ongoing protests.
The Economic Survey 2023 revealed that the sector’s contribution to the Kenyan economy is estimated to be around Ksh1 trillion . This was reported by Rajan Shah, Chairperson of the Kenya Association of Manufacturers (KAM). It therefore amounts to a daily value addition of about 2.86 billion shillings.
“Therefore, the country stands to lose up to 2.86 billion shillings daily if the protests continue to disrupt businesses as we have witnessed in the last two weeks,” Mr. Shah said.
Shah said in a statement that the ongoing protests have significantly impacted the logistics and supply chain networks necessary for the efficient delivery of manufactured goods to final consumers.
The delays and increased expenses have been caused by the disturbances, which have made it more difficult to move finished products and raw materials, which has had an impact on the entire manufacturing process. Expected shortages and price fluctuations have directly impacted the market’s ability to supply essential goods.
Read Also: How the Anti-Government Protests Affects Businesses Across the Country
KAM further cautioned the country saying that its reputation as a desirable investment destination is at stake. The organization expressed its concern that the country’s ambitious aim to triple the manufacturing sector’s contribution to the GDP from its present 7.8 percent to 20 percent by 2030 may not be achievable given the current trajectory.
This is based on the fact that investors rely largely on a stable political and social climate that ensures the security of their assets and the safety of their corporate operations.
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“We urge the Government and Azimio La Umoja to lead from the front and strive to resolve this stalemate using peaceful means such as dialogue and any other means provided for by the Constitution. As it is, we are in a lose-lose situation,” Mr. Shah said.
