Uganda relies heavily on Kenya's borders for the export and import of its goods. The primary route for transporting goods to and from the port of Mombasa, an important gateway for Uganda's international trade, passes through Kenya. With the current unrest, the flow of goods has been severely disrupted, creating serious delays and increasing uncertainty among traders.
"Most of the trucks have been stopped," Mbabazi explained. "There is a huge gap in time, and perishable products are at arisk of spoilage. How will the traders handle the losses and the damages it has caused them?"
The immediate impact of the Kenyan riots is a great shock to Uganda's economic activities, particularly in sectors that depend on timely transportation of goods. Perishable products are especially vulnerable, and delays can lead to substantial financial losses. Mbabazi highlighted that traders are already facing anxiety and worry, given the precarious situation.
"We are going to see a huge shock in how best we have been able to trade products like milk and eggs," Mbabazi noted. "Traders are anxious because many have borrowed money to finance their businesses, and the disruption in trade routes adds to their financial strain."
The riots in Kenya are expected to drive up the cost of trading and fuel. As trucks remain halted and supply chains are disrupted, the scarcity of goods will likely lead to price hikes. This increase in costs will be felt not only by traders but also by consumers, who will face higher prices for essential goods.
"The cost of trading and fuel is going to rise, adding further pressure on an already strained economy," Mbabazi said.
The financial losses stemming from delayed shipments and spoiled perishable goods are a pressing concern for Ugandan traders. Some people are questioning whether to stock goods like fuel in advance.Traders should consider alternative routes and logistical solutions to minimize delays and ensure the continuity of their businesses.
The ongoing protests in Kenya have far-reaching implications for Uganda's economy. The disruption of trade routes not only affects current transactions but also poses a risk to future economic activities. If the unrest continues, it could lead to a prolonged period of instability, further hindering trade and economic growth in Uganda.
"We are going to see aspects of anxiety and worry among traders," Mbabazi warned.
As Uganda navigates the challenges posed by the Kenyan riots, ensuring alternative trade routes, providing financial assistance to affected traders, and closely monitoring the situation in Kenya are essential steps to ease the impact on Uganda's economy. The resilience and adaptability of Ugandan traders will be tested in the coming days, but with the right support and strategies, they can navigate this period of turbulence.
Peninah Mbabazi's insights emphassize the urgent need for coordinated efforts to address the economic fallout from the Kenyan protests. As the situation evolves, continuous assessment and responsive actions will be important in safeguarding Uganda's economic interests and ensuring stability for its trading community.
Meanwhile, Kenya’s President William Ruto, in an address to the nation today, said he concedes and will not sign the controversial finacial bill that sparked nationwide deadly unrest.
