Businesses Forego Profits as Saba Saba Protests Deliver Losses

Hello and welcome to the Money News Roundup Newsletter, where we are covering the Saba Saba protests and the aftermath of the losses.

Businesses Forego Profits

In preparation for the Saba Saba protests, several business owners opted to shut down their businesses, foregoing the day's profits to avoid the risk of having their businesses vandalised.

On Monday, businesses in Nairobi CBD, its environs, and select counties such as Kajiado and Kiambu remained closed after protesters stepped out, while police barricaded roads, turning the CBD into a ghost town.

Among the affected individuals were Kenyans travelling to work, who were forced to alight and either proceed on foot or use motorbikes. Long-distance travellers, especially those from Western, Nyanza, and Rift Valley, were barred from accessing the Central Business District and were forced to camp along Waiyaki Way.

Roads Closed: Among the highways closed were Waiyaki Way at Kangemi, Thika Road at Roysambu and Guru Nanak, Mombasa Road at the GM Roundabout, and the Eastern Bypass at the 75 Roundabout. Others included Kangundo Road at Njiru and near Mama Lucy Hospital, as well as Jogoo Road at City Stadium and along Juja Road.

Precautionary Measures: On Sunday night, some traders worked late into the night welding their shop doors shut to prevent break-ins during the Saba Saba demonstrations. Some opted to relocate their goods to safer areas to avoid looting.

Traders' Measures: In downtown Nairobi, some traders collaborated in supervising their businesses to keep looters away. They hired individuals and identified themselves with red ribbons.

Estimated Foregone Profits: Business Daily estimates that in Nairobi alone, the shutdown of businesses cost their owners Ksh8.8 billion, according to analysts and previous statistics. Other affected counties include Kiambu, Kajiado, Nyeri, Embu, Nakuru, Machakos, Murang'a, Kisii, Kirinyaga, and Uasin Gishu, among others.

Protests' Losses

Whereas Nairobi businesses remained unvandalised due to the precautionary measures put in place, outskirts towns were not spared.

Among the affected brands were Quickmart, Magunas Supermarket, and County Supermarket in Murang'a. Magunas in Meru and the Kirinyaga Central NGCDF offices were torched during the protests.

Reports indicated that seven individuals linked to the looting were arrested after they were trapped inside the supermarket.

The Numbers: Media houses estimated that 19 people lost their lives during the protests, a figure that has since been disputed by the police, who estimate the loss of lives at 11.

According to Muchiri Nyaga, the police spokesperson, 52 police officers were injured, 11 civilians were injured, 12 police vehicles were damaged, while 3 government vehicles were also damaged. Four civilians lost their vehicles to vandals, while 567 people were arrested countrywide.

What Murkomen is Saying: Interior CS Kipchumba Murkomen commended law enforcement for maintaining law and order during the protests, hailing them for their "dedication to securing lives and property."

"Saba Saba commemorates a turning point in our country's journey to multi-party democracy, order, and better governance. Kenyans have the right to mark the day in peace and decency," he said. "Unfortunately, peaceful demonstrations have recently been infiltrated by criminals out to cause chaos and destruction."

Here are other top business headlines this morning

NSE Surges Despite Protests and Economic Turmoil

The Nairobi Securities Exchange (NSE) defied political unrest and economic strain to post a strong rebound, gaining Ksh18.2 billion in a single day even as trading volumes dipped by nearly 27 percent. The Standard reports that on a day marked by heightened protests—driven by public anger over police brutality, the rising cost of living, corruption, and government waste—the number of shares traded fell from 18.2 million to 13.3 million, highlighting cautious investor activity.

Despite the disruptions, particularly in Nairobi, which contributes 30.1 percent of Kenya’s GDP and was hit hardest by road barricades and shutdowns, investor confidence in the market remained resilient. In the first half of 2025, the NSE delivered a 25% return to equity investors, outpacing returns from traditional assets like Treasury bills and real estate. The performance underscores a surprising market optimism even as the country grapples with deep social and economic tensions.

Timber Sellers Face Higher Tax Burden After Preferential Treatment Removed

Timber sellers in Kenya are staring at tighter margins after a long-standing tax relief was axed by the government. For years, they enjoyed a preferential tax treatment that allowed them to deduct expenses like the cost of acquiring logging rights or standing timber when filing their income tax returns. But with the signing of the Finance Act 2025, that cushion is gone.

The new law, as reported by Business Daily, strikes off timber-related deductions from the list of allowable expenses, meaning sellers will now be taxed on their gross proceeds, not profits. This comes on the heels of other cost pressures, including a steep rise in movement permit fees from Ksh2,000 to Ksh25,570. Industry players warn this could not only squeeze timber sellers but also trigger legal pushback over what they see as unfair treatment. Ironically, all this is happening at a time when the timber and furniture sector is thriving, contributing an estimated Ksh125 billion to Kenya’s GDP, fuelled largely by a booming construction industry.

Foreign Shipping Firms Under CAK Probe

The Competition Authority of Kenya is investigating multinational shipping and logistics firms for alleged market abuse, collusion, and dominance that may be sidelining local transporters. A report by People Daily indicates that the accusations include controlling both ocean freight and inland services like warehousing and trucking, leaving little room for local players.

If found guilty, CAK may force structural changes such as breaking up vertically integrated operations. Local truckers view the probe as a long-overdue opportunity to level the playing field in a market long dominated by foreign firms.