Violent protests that swept across Kenya this week have cost the country an estimated Ksh 3 billion in daily losses, according to the government, with small businesses hit hardest.
NAIROBI — Principal Secretary for Micro, Small and Medium Enterprise (MSME) Development Susan Mang’eni said Thursday the government is considering working with insurance firms to help businesses recover from protest-related damage. “The economic disruption is significant. We are looking at measures that can offer some form of relief,” Mang’eni said during a press briefing in Nairobi.
The remarks came two days after the June 25 demonstrations, held to mark the anniversary of last year’s deadly anti-tax protests. Business owners in 25 counties reported extensive destruction, with many storefronts vandalized and looted. Some reported losses running into millions. Others warned they may be forced to shut down entirely.
“This is not just about protests,” said a trader in Kisumu whose shop was looted. “It’s about survival. We’ve lost stock, and we don’t know if we can recover.”
The government estimates that protests across the country now result in Ksh 3 billion in daily economic losses. MSMEs account for the bulk of the damage, due to their limited capacity to absorb shocks.
Banks are now anticipating a spike in nonperforming loans. Many MSMEs that borrowed to expand are no longer operational. “The destruction has immediate financial implications. We’re likely to see more defaults,” a senior banking official told reporters on condition of anonymity.
Despite plans for insurance-based relief, the Insurance Regulatory Authority reports that more than 60 percent of MSMEs remain uninsured. This raises questions about the feasibility of using insurers as a safety net.
Mang’eni said the state also plans to ramp up MSME registration efforts. She emphasized that proper registration will allow the government to support businesses more effectively during crises.
“Right now, coordination is a challenge because many businesses operate informally,” she said.
This week’s unrest is only the latest blow to Kenya’s MSME sector, which has faced repeated shocks from COVID-19, inflation, and rising loan costs. The protests have added new strain to an already fragile ecosystem.
In the wake of the protests, business groups are urging both the government and opposition to find a peaceful path forward. They warn that continued unrest will deepen the economic fallout and drive more enterprises into closure.
For many small business owners, the damage is more than financial it is existential. As one Nairobi-based grocer put it, “You can rebuild a shop. But trust, stock, and customers don’t come back that fast.”
