Kenyan protests spark concern among Ugandan traders
In the midst of protests taking place in various Kenyan cities, economic experts and traders in neighbouring Uganda are growing increasingly concerned about potential delays in consignments delivery, leading to significant financial losses.
The recent protests in Kenya have raised fears of a repeat of the 2007 post-election violence, causing apprehension in the region's business community.
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The capital city, Nairobi, and major towns like Kisumu, Kisi, Mombasa, and Nakuru have witnessed unrest for the greater part of the just concluded week, with tear gas, water cannons, and bullets being used to disperse protesters.
While protestors voice their grievances, businesses have already felt the impact of the unrest.
According to available data, Kenya loses approximately 3 billion Kenyan shillings (roughly 77 billion Ugandan shillings) for each day that demonstrations occur.
This financial toll raises concerns among Ugandan traders and economists, who fear that the situation could have ripple effects on their own economy.
Economist Meddie Baguma says “This loss does not only rest on the shoulders of Kenya but also Uganda that equally shares the spoils,".
Baguma, further expressed worry about the potential increase in fuel prices due to the finance act that has caused troubles in Nairobi, affecting the region's fuel supply chain.
However, the commissioner of customs at Uganda Revenue Authority, Abel Kagumire expressed Uganda’s close observance of the code named ‘Maandamano’ protests from the eastern neighbors
"At the borders of Busia and Malaba, business has not been heavily disturbed by the demonstrations in Kenya, and the Uganda Revenue Authority says it's monitoring the situation closely," said Kagumire.
Kagumire further remained cautious about the impact of the situation on Uganda and whether the increase in the VAT rate on fuel in Kenya will affect its neighboring country.
"It's too early to call," Kagumire stated.
As East Africa's biggest economy, Kenya plays a crucial role in the trade activities of its neighboring countries.
Many Ugandan traders fear that consignments from Mombasa may experience delays, resulting in significant losses for their businesses.
Compounded with already low sales, this potential setback poses a significant challenge for the traders.
The unfolding situation in Kenya is being closely monitored by both Ugandan economic experts and traders, who hope for a swift resolution to the demonstrations to prevent further disruptions to the regional economy.
The well-being of businesses and trade relations between the two countries remain a top priority as authorities and stakeholders seek a stable and secure environment for cross-border activities.
