The last four months of the electioneering period has cost private businesses up to Sh700 Billion in lost opportunities according to a report filed by KEPSA.
The Kenya Private Sector Alliance (KEPSA) on Tuesday stated that the situation risks getting out of hand, further hurting the economy which is already bruised.
[caption caption="Kepsa Official"]
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This is especially so given that private businesses employ about 1.8 Million Kenyans which is about 71% of formal employment, KEPSA stated.
“The harsh political climate has serious implications as medium, small and micro-enterprises employees about 85% of Kenya’s labour force," KEPSA’s trustee Patrick Obath claimed.
"The education sector has also had its calendar disrupted and national examinations could suffer if the current political situation is not managed properly,” he added.
The private sector group ascertained that the matatu sector was losing Sh75 Million daily from disrupted services in counties affected by political demonstrations such as Kisumu, Siaya, Homa Bay, Migori, Mombasa, and Nairobi.
KEPSA’s statement also identified wholesale and retail sectors as some of the hardest hit businesses noting that street demos forced them to shut premises for fear of looting and destruction of property. This, KEPSA stated, had hurt the long-distance truck and rail transport businesses as well as warehousing services.
The Nairobi Securities Exchange (NSE) was shaken by the ruling of the Supreme Court nullifying President Uhuru Kenyatta’s re-election, shedding over Sh50 Billion on the judgment day.
Economists have also stated that inflation and the cost of living have risen from 6.3% in August 2016 to eight percent in September 2017. The planned NASA demonstrations were anticipated to make the state of the economy to worsen.
Development projects by both the national and county governments have also been halted. Uasin Gishu Governor Jackson Mandago echoed that operations in most counties have been stalled due to lack of funds by development projects.
[caption caption="Kepsa Chief Executive Carole Kariuki"]
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