Corporates Warn Of Job Losses, Investors Running Away Due To Protests

KEPSA noted that it has been actively collaborating with the government and various stakeholders to foster a favourable business climate both locally and internationally.

The alliance emphasised that these efforts have positioned Kenya as a prime destination for business and foreign investment, but warned that ongoing protests could undo the progress achieved over the years.

In its statement, KEPSA acknowledged the challenging role of security forces, urging them to operate within the law while protecting citizens.

The organisation also highlighted the vital role of young people in the economy, as entrepreneurs, employees, and future leaders. "The private sector remains committed to addressing all concerns that will ensure the lives of all Kenyans are protected and sustainable jobs are created and maintained," added KEPSA.

"Furthermore, we understand that the security officers don’t always operate in the easiest environment. Yet, as they navigate the everyday challenges, they must have the protection of lives and livelihoods at the forefront of their minds and hearts. In executing their mandate, we expect them to follow the rule of law."

The alliance further urged the political class to gauge their actions and utterances to avoid further weakening the social and economic fabric upon which society, including the private sector, depends on. 

"The public, including the security officers, takes their cue from you, and the effects are felt widely, including by investors. The private sector advocates for a governance model that prioritises public accountability and the peaceful expression of grievance as enshrined in the constitution.

"In light of this, we are calling for an urgent de-escalation of the situation to prevent it from leading to further loss of life, destruction of property, and negative impacts on businesses," added KEPSA. 

The caution comes as the country continues to bounce back from last year’s protests, which saw GDP growth dip to 4.7 per cent from 5.7 per cent in 2023, largely due to business closures during June, July, and part of August.

According to the Kenya National Bureau of Statistics (KNBS), formal job creation also slowed, with only 78,600 new jobs recorded compared to 123,000 in 2023. Overall job growth in 2024 stood at 782,300, down from 848,200 the previous year.

While it remains uncertain how long the current wave of protests will persist, online conversations suggest a nationwide shutdown is being planned for Tuesday, June 25, which could further impact business operations.