Business Daily (Nairobi)
Mwaura Kimani
16 January 2008
Kenya was last night left facing the prospects of yet another round of economic disruption after most businesses closed early as protesters engaged police in running battles in major towns.
Yesterday was the first of the three-day mass action called by the Orange Democratic Party (ODM).
Trading at the Nairobi Stock Exchange, however, went on un-interrupted. Most of the stocks made marginal gains pushing up key performance indicators. The NSE 20 Share Index rose by 81.71 points to close at 5206.15 points.
Market capitalisation, the value of all shares traded rose by Sh20 billion to close at Sh840 billion up from Sh820 billion posted on Tuesday.
In Nairobi, supermarkets, banks, forex bureaux and shops closed early after protesters who had gathered near the Hilton Hotel were dispersed by anti-riot police causing confusion in the city centre.
By four o'clock, streets were deserted as contingents of anti-riot police officers patrolled the streets.
"We cannot do business like this, the uncertainty is hurting our businesses. A solution has to be reached on the crisis otherwise we will look for options, "said Anwar Manji who runs a designer wear shop along Moi Avenue.
A spot-check by Business Daily showed that many shopkeepers closed shop to try to prevent looting, in anticipation of the protests. "We opened business today as we thought our political leaders have realised the damage street protests and the political crisis are doing to the country," said Jane Onyango, a mobile phone airtime dealer along Tom Mboya Street.
Two weeks ago, business leaders said that the Government was losing an estimated Sh2 billion in tax revenues daily that companies are closed due to the political strife.
Unrest since the announcement of the results of last month's poll has claimed more than 600 lives, driven about a quarter of a million of people from their homes and jeopardised Kenya's democratic credentials, angered donors, and driven tourists away.
The International Monetary Fund warned on Tuesday of a damaging effect on Kenya's economic performance in the medium to long term, citing the current political standoff.
The IMF senior resident representative Scott Rogers said the current crisis has dealt a blow to one of Kenya's strong fundamentals-- relative political stability, and this was likely to affect investor confidence and decrease earnings from the tourism sector.
Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli warned that thousands of workers countrywide risked losing their jobs as factories closed down while others cut down on labour costs informed by reduced business.
ODM's Raila Odinga, who maintains he was robbed of victory, had called for a peaceful protests countrywide, but the Government swiftly outlawed the meeting ,setting up a showdown with opposition supporters.
According to the Institute of Surveyors of Kenya, the property sector lost Sh100 billion following the destruction of buildings as a result of the recent elections violence.ISK warned that property prices in the areas affected by the violence had dropped.
In Nairobi, heavy rains prevented large numbers of demonstrators from appearing on the streets in the morning hours.
In the port city of Mombasa, there have been running battles between protesters and police and several people have been injured.
Reports indicated police in Kisumu dispersed a 1,000-strong crowd with teargas, batons firing bullets in the air. One man was reportedly shot dead and another badly hurt.
The protest came only a day after the inauguration of the Tenth Parliament, which also saw the election of ODM's Kenneth Marende as Speaker, boosting the opposition's dominance which also has a majority. Also, 206 MPs were sworn in.
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