By Judy Maina
NAIROBI — Private sector activity in Kenya took a significant hit in July, as ongoing public protests against the government eroded economic confidence and disrupted business operations, according to a survey released on Monday.
The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) fell to 43.1 in July, down from 47.2 in June, indicating a contraction in business activity. PMI readings below 50 signal a decline.
“Protests in Kenya caused disruption to the private sector in July, leading to a marked deterioration in business conditions,” Stanbic Bank Kenya commented in the survey’s release.
“Political instability led to a reluctance among customers to commit to new orders, while the protests themselves in some cases blocked access to businesses and prevented them from opening.”
Since mid-June, more than 50 people have been killed during protests, as reported by the Kenya National Commission on Human Rights (KNCHR), a government-funded organization.
Demonstrators took to the streets to oppose a now-shelved tax increase proposed by President William Ruto’s administration.
Despite the withdrawal of the tax legislation, the youth-led protests persisted, with calls for President Ruto to resign and accusations of widespread government corruption and inefficiencies.
The intensity of the protests has since reduced, but their impact on the economy remains pronounced.
“Private sector business activity deteriorated, reflecting ongoing demonstrations and unrest in parts of Kenya for some weeks now, discouraging output and new orders,” said Christopher Legilisho, an economist at Stanbic Bank.
As the political landscape continues to fluctuate, businesses in Kenya remain on edge, uncertain of when stability will return.
The writer of this story can be reached at: judy.maina@alleastafrica.com
