Summary
- Since the August 8 election and the ensuing stalemate, Bunson Travel Service has lost hundreds of visitors in a series of cancellations, resulting in a 20 per cent plummeting of its income.
- The travel industry has lost Sh1.5 billion in sales in September and the losses could double if the standoff persists.
- The Kenya National Chamber of Commerce and Industry said businesses in sectors such as transport and manufacturing have laid off staff and become “reluctant to take up new stock, fearing losses in the event of chaos.”
Julie Scott, the managing director of travel and tour firm
Bunson Travel Service, Thursday received a call from her business
partners relaying what has become a regular message in the past month.
A
group of about 70 businesspeople that were to jet into Nairobi from
around the world for a regional management meeting had changed the venue
to Arusha, Tanzania, citing concerns over the volatile political
situation in Kenya.
At around 5 pm, several e-mails
dropped in indicating three more parties of business tourists, each
numbering about 30, had cancelled their Nairobi meetings — moving them
to countries they thought were safer.
Luckily for Ms
Scott, Bunson was retained to amend the flight bookings, even as it lost
out on transfers, hotel bookings and ancillary business such as tours.
Since
the August 8 election and the ensuing stalemate, the agency has lost
hundreds of visitors in a series of cancellations, resulting in a 20 per
cent plummeting of its income.
Business Daily’s
interviews with small and medium enterprises (SMEs) found that nearly
all are creaking under the weight of a prolonged political standoff,
struggling to meet obligations in an environment of low sales.
“The recent demonstrations have seen many of our clients go slow on new reservations,” Ms Scott said.
“At
some point, my employees and I may just be sitting in the office doing
nothing but dealing with cancellations. This impasse needs to be
resolved soon and peacefully.”
The Kenya Association of Travel Agents (KATA) buttressed her
view, revealing that the industry lost Sh1.5 billion in sales in
September and the losses could double if the standoff persists.
ALSO READ: Stalemate hits property sales around Nairobi
Sunk to record lows
September
was also the reference point for Abdinasir Ibrahim, who runs a fashion
stall at Jamia Mall in Nairobi’s central business district.
That is when revenue from his shop, Valentine, sunk to record lows and stayed there.
“Our monthly rent is Sh120,000 so you can imagine how strained we are at the moment,” he told the Business Daily when we paid him a visit.
“I usually travel abroad three times every year to restock but
sales have been so bad that I am still selling what I bought in April.”
Lillian
Nyambura and Don Santo sell mobile phones and accessories at Joetech
Communications on Moi Avenue, one of the city streets that experience
regular running battles between demonstrators and security agencies.
Today, they sell on average five phones a day, an 80 per cent drop from the 25 handsets on a normal sales day.
Mobile phone sellers Lillian Nyambura and Don Santo: “We used to sell
about 25 mobile phones per day. Today, we are lucky if we manage to sell
five.” PHOTOS | SALATON NJAU | NMG
The duo contends that while there was a dip in
purchases even before the election due to “lower customer buying power”,
the political environment has exacerbated a bad situation.
Moza Mohamed, a hairstylist, said she can’t wait to get the election over with.
“I think people have money, but are prioritising it for more important purchases like food,” she said.
“I think people have money, but are prioritising it for more important purchases like food,” she said.
The
Kenya National Chamber of Commerce and Industry said businesses in
sectors such as transport and manufacturing have laid off staff and
become “reluctant to take up new stock, fearing losses in the event of
chaos.”
CFC Stanbic Bank’s Purchasing Manager’s Index
(PMI), which seeks to measure the health of the country’s private
sector, dipped to 40.9 points in September, hitting fresh lows since the
series began in January 2014.
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