On Tuesday, business activities in various parts of Kenya came to a standstill as demonstrators took to the streets to protest against the government on multiple issues.
- Largely composed of the youth, the protestors are demanding an end to government wastage through budgeted corruption, as well as an end to police brutality and abductions.
- Protesters stepped up demands for President William Ruto to resign, despite his recent concessions such as dropping the controversial Finance Bill 2024, firing his entire cabinet, and the resignation of the head of the police force.
- The protests, which paralyzed activities in major towns such as Nairobi, Mombasa, Kisii, Machakos, Kisumu, and Nakuru, led to the closure of many businesses as traders feared the destruction of their properties. In Nairobi, police lobbed teargas at protestors, and early reports indicated that several protestors had been injured.
The impact of the protests was felt in the financial markets, particularly on the Kenyan shilling and Eurobonds. The shilling fell as much as 0.5% — the biggest decline in almost two months, according to Bloomberg. By 6:23 p.m. in Nairobi, it was trading 0.4% weaker at 129.89 per dollar. Additionally, the yield on Kenya’s 2031 dollar Eurobonds fell by 0.33 cents on the dollar to 96.73 cents.
Despite these declines, the stock market remained largely unaffected. The NSE 20 Share Index rose by 13.79 points to 1710.92, and the All Share Index NASI gained 0.10 points to close at 110.23. However, the NSE 25 Share Index and the NSE 10 Share Index saw minor declines, closing at 2912.28 and 1139.26, respectively. The bond market was active, with bonds worth KES 13 billion traded, while the equities market recorded a volume of 13 million shares worth KES 310 million.
President William Ruto sought to quell the unrest by scrapping the proposed taxes after demonstrators stormed parliament on June 25. In response to the demonstrations, he also sacked almost his entire cabinet and accepted the resignation of the chief of police.
The Finance Bill 2024, which proposed various tax measures to finance the 2024/25 budget, ignited the initial protests last month. Pressure from demonstrators necessitated the withdrawal of the Bill, which is still pending a Parliamentary sitting.
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