Fuel price hike crisis: Nakuru economy loses Sh4 Billion in two days of protests

Nakuru county economy lost a whooping Sh 4.2 billion during the two days nationwide anti-fuel hike protests that rocked the country.

The strike which Nakuru county took part in paralysed transportation as well as other sectors of the economy in the two days between Monday and Tuesday before it was eventually suspended.

Wilson Gitu, the Chairman of the Nakuru Business Community, through a phone interview, stated that while the exact total financial damage to businesses in Nakuru cannot yet be quantified, the impact on foreign direct investment is already clear.

He noted that gauging from the weekly estimates the disruption of business operations saw the economy lose 4.2 billion in the two days.

According to Mr Gitu, the matatu sector alone lost Sh 150 million from international investment.

He revealed that a foreign investor who had intended to invest in the county, pulled out of a major diesel-dependent venture, citing skyrocketing fuel prices as the primary reason for abandoning the project.

“We do not have the exact loss figures or estimates at this time, however, losing the diesel project that cost about Sh150 million served as a warning of how current energy prices are discouraging foreign capital,’’ said Mr. Gitu.

Traders in the Nakuru Central Business District (CBD) further reported reduced customer flow and declining sales as the tough economic environment, caused by the recent fuel hike, continues to affect business activity in town center.

A spot check in various parts of CBD, including Kenyatta Avenue and Wakulima market area, showed moderate foot traffic with some traders saying customers are now buying fewer items compared to the previous week.

Several business owners attributed the slowdown to the rising cost of living, which they said has reduced the purchasing power of many residents.

‘’Customers are coming, but they are not buying like before. Most of them are only taking what is necessary,” said John Mwangi, a shoe shop owner in the CBD.

Hawkers and small kiosk operators also echoed similar concerns, noting daily profits have plummeted, forcing them to adjust their stock and operations to manage losses.

Mary Wanjiku a vegetable vendor at Nakuru’s Wakulima Market, said sales have been inconsistent, adding that she now earns less than half of what she used to make on a good day prior to the hike.

‘’I used to buy more things when I came to town, but now I only take what I urgently need because life is expensive,” said Grace Njeri, a shopper town.

The hospitality sector, also reported reduced customer of daily numbers, affecting daily earnings and tips.

‘’At times we go for hours without many customers. Even tips have gone down compared to before,” said Peter Kibet, a waiter working at a hotel along Kenyatta Avenue.

Business operators are now calling for improved economic conditions and support for small traders to sustain their businesses.