The Impact of Public Demonstrations from an Economic Perspective.

 

Public demonstrations in Kenya have become a recurrent phenomenon, with opposition continuously putting pressure on the government to address various social, economic, and political issues. These protests have far-reaching consequences that extend beyond the immediate streets, affecting the business community, citizens, and the overall economic stability. In this article, I delve into the compelling dynamics of how public demonstrations impact different aspects of Kenyan society, providing real examples to illustrate their effects.

Public demonstrations often lead to road closures, blockades, and unrest, thereby causing significant disruptions to businesses. For instance, in 2017, during the opposition's protest against election results, some businesses in Nairobi experienced difficulties in transporting goods, resulting in delays and loss of revenue, and 2023 is no different.

Protracted demonstrations and political uncertainty can dampen investors’ confidence. When businesses perceive instability and potential risks, they may delay or reconsider their investment plans, Tanzania is now experiencing increased investment growth as announced by Tanzanian President Suluhu Hassan a few days ago. As a result, foreign direct investment in Kenya will decreasee if that statement is anything to go by.

Kenya's tourism industry, which is a crucial driver of the economy, can suffer from the negative impact of demonstrations. Travel warnings issued by foreign governments and media coverage of protests may deter tourists, leading to a decline in hotel bookings, safari tours, and related business.

Demonstrations can exacerbate the economic hardship of ordinary citizens. When businesses are disrupted and investor confidence declines, job opportunities may shrink, and daily wage earners, Mama Mboga and Jua Kali, could lose their income. For example, during the 2017 post-election protests, informal traders countrywide faced reduced sales due to the tense environment, which affected their livelihoods.

Protests can hinder access to essential services, particularly in areas with high levels of protests. Schools are forced to close, healthcare services can be affected, and citizens might find it challenging to access banking services and other amenities.

Demonstrations can polarize society, leading to social tensions and divisions among citizens. This can disrupt social cohesion, hamper community efforts to address shared challenges, and promote economic growth.

The impact of continuous public demonstrations on Kenya's GDP growth can be significant. Disruptions in business operations, declining investor confidence, and a drop in tourism revenue can all contribute to slower economic growth rates.

The government may face increased fiscal pressure because it allocates resources to manage demonstrations and address the demands of the opposition. This could strain the budget, leading to potential reductions in essential services and development projects.

The perception of Kenya as a politically stable investment destination can be tarnished by recurring protests. Negative media coverage and foreign governments' travel advisories can further impact a country's image and deter foreign investment.

In conclusion, these demonstrations, driven by the opposition's pressure on the government, have multifaceted effects on the business community, citizens, and the general economic situation. The consequences of disruptions to business operations and declining investor confidence in economic hardships for citizens and slower GDP growth are substantial. To address these challenges, an open and constructive dialogue between the government and opposition is essential, seeking to find common ground and implement reforms that address citizens' legitimate concerns. Stable and prosperous Kenya relies on the ability to balance democratic rights with economic stability, ensuring that the grievances of the people are heard and acted upon.

Mr. President listen to your people.

Author,

Ekaale Ekuam

Freelance Writer, Entrepreneurship, and Innovation Management Consultant.