On Tuesday, business operations across Kenya came to a halt as demonstrators flooded the streets to protest against the government on several issues.
Mainly comprised of young people, the protesters are calling for an end to government wastage through budgeted corruption, as well as an end to police brutality and abductions. The demonstrators intensified their demands for President William Ruto to resign, despite his recent actions such as withdrawing the controversial Finance Bill 2024, dismissing his entire cabinet, and accepting the resignation of the police chief.
The protests disrupted activities in major cities including Nairobi, Mombasa, Kisii, Machakos, Kisumu, and Nakuru, causing many businesses to close as traders feared potential damage to their properties. In Nairobi, police deployed teargas against protesters, with early reports indicating several injuries among the demonstrators.
The financial markets felt the impact of the protests, particularly affecting the Kenyan shilling and Eurobonds. The shilling dropped by as much as 0.5%—its biggest decline in nearly 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 decreased by 0.33 cents on the dollar to 96.73 cents.
Despite these declines, the stock market remained largely stable. The NSE 20 Share Index rose by 13.8 points to 1710.9, and the All Share Index NASI increased by 0.1 points to close at 110.2. However, the NSE 25 Share Index and the NSE 10 Share Index saw slight decreases, closing at 2912.3 and 1139.3, respectively. The bond market was active, with bonds worth KES 13.0 billion traded, while the equities market recorded a volume of 13.0 million shares worth KES 31.0 million.
President William Ruto attempted to calm the unrest by abandoning the proposed taxes after demonstrators stormed parliament on June 25. In response to the protests, he also dismissed nearly his entire cabinet and accepted the resignation of the police chief.
The Finance Bill 2024, which suggested various tax measures to fund the 2024/25 budget, sparked the initial protests last month. Pressure from the demonstrators led to the withdrawal of the Bill, which is still awaiting a Parliamentary session.
