Business activity and transport in 25 counties was disrupted on Wednesday as protestors took to the streets to mark the first anniversary of protests against the Finance Bill 2024 that turned deadly.
Activity was hardest hit in the Nairobi central business district (CBD) as businesses remained shut the entire day—translating to massive losses.
Police fired tear gas and used water cannons to disperse protesters in the capital and blocked incoming traffic towards the central business district—the epicentre of the protests.
Some businesses were looted and property destroyed in the Nairobi CBD even as thousands of demonstrators took to the streets earlier in the day to commemorate demonstrations last year that left at least 60 people dead and culminated in the storming of the National Assembly.
Wednesday’s protests took a national scope, with police also locked in day-long running battles with protesters in various towns across 25 counties, including Nairobi, Nakuru, Kisii, Mombasa, Nyeri, Embu, Kajiado, Lamu, Taiota Taveta, Busia,
Kisii, Uasin Gishu and Homa Bay—resulting in the closure of businesses and major highways.
At least five people were reported killed in Wednesday’s demonstration across Kenya and scores of others left nursing injuries.
The economic impact of the protests was clear as businesses rued missed opportunities and lost property in some instances.
The Kenya Private Sector Alliance had previously said businesses lose an average of Sh3 billion daily during mass demonstrations.
Last year’s demonstrations were cited as one of the reasons the country’s GDP growth declined to 4.7 percent compared to 5.7 percent the previous year.
The government also feels the pinch of the demonstrations in revenues lost and costs associated with repairs of infrastructure destroyed by protestors.
Some of the looted shops around Koja area in Nairobi Central Business District (CBD), Kenya during the protests on June 25, 2025.
Photo credit: Kevin Cheruiyot | Nation Media Group
The county government of Nairobi is estimated to collect Sh6 million daily from parking levies that were not collected yesterday.
“The worst part is the fear arising from the protests because people are not economically active when there is fear and also prices for basic things tend to be hiked,” said Prof X. N. Iraki, an economics lecturer at the University of Nairobi.
He noted the fear spreads even to foreign investors as international media usually highlights the protests.
Even with the disruptions, however, the Nairobi Securities Exchange (NSE) made a gain of Sh15.97 billion in investor wealth to close the day with a valuation of Sh2.339 trillion.
Major stocks including Safaricom, Equity Group, BAT Kenya, and KCB Group gained between 0.3 percent and 1.3 percent to support the NSE.
The NSE’s reaction to Wednesday’s protest was in contrast to the losses seen following last year’s June 25 protest when it shed Sh15.6 billion in market capitalisation (the measure of investor wealth), and followed up with another loss of Sh11.8 billion on June 26.
Analysts however warned that the negative effects of the renewed political risk are likely to filter through in coming days once investors take stock of the potential impact on the economy.
Despite the rise in valuation, however, there were early warning signs of the risk that protests pose to the market.
Foreign investors returned to the exit side with net outflows of Sh35 million, breaking a run of net buying in recent trading sessions that included net inflows of Sh55 million on Tuesday.
They also remained a minority in the market in terms of participation, accounting for 29 percent of traded turnover. Equity turnover fell by 26 percent or Sh82.3 million to Sh232.7 million, while the number of shares traded declined by 11 percent to 14.33 million shares.
“While the trading numbers yesterday were just an early indicator, the concern now is that we might be set for another run of foreign exits, that is of our own making. The foreign investors will be looking keenly at the government’s response to the new protests to judge whether the political risk will persist,” said Wesley Manambo, a senior research associate at Standard Investment Bank.
For the shilling however, the reaction to protests was fairly muted, mirroring the situation last year when the currency was largely unmoved by the protests.
On Wednesday, the shilling traded within a range of Sh120.20 and Sh129.28 in the interbank market.
Looted shops along Mfangano Lane in Nairobi Central Business District (CBD), Kenya during the protests on June 25, 2025.
Photo credit: Francis Nderitu | Nation Media Group
On Tuesday, the local unit had closed at an average of Sh120.29, as per official data from the Central Bank of Kenya (CBK).
The shilling has not traded outside of the 129 level since August last year, with the prolonged stability attributed by some traders to CBK intervention through dollar sales and purchases in the market to keep the currency free of volatility.
The CBK also holds a record $10.9 billion (Sh1.41 trillion) worth of foreign currency reserves, which has sent a signal to the market that it is well capable of intervening in the forex market in the case of economic shocks.
Besides the crackdown on protestors, the State also ordered all radio and television stations to stop live coverage of the protests, drawing condemnation from the Kenya Editors Guild and the Law Society of Kenya, who termed the move as illegal.
Parliament was also forced to adjourn its morning sitting prematurely after MPs failed to present themselves in the debating chamber to conduct the business of the day. The afternoon session was cancelled with the safety of MPs, and parliamentary staff being prioritised.
