Mombasa's Descent into Economic Crisis

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Nyakundi Report

Newsroom 2 min read

Primary source Kenyan Digest archive

This archive report was first published on 20 August 2019.

As I reflect on the current state of Mombasa, I am filled with a sense of despair and hopelessness. The city, once a beacon of economic prosperity, is now on the verge of death.

According to Suleiman Shahbal, a private hospital in Mombasa recently fired 50% of its workers, a stark reminder of the economic downturn that has gripped the city. The hospital's decision was not taken lightly, and it is a testament to the harsh realities of the economic situation in Mombasa.

Container Freight Stations (CFSs) have also been severely affected, with over 3,000 people losing their jobs either directly or indirectly. The transport sector, once a lifeline for the city, is now dead, with thousands of trucks left idle and drivers and support staff struggling to make ends meet.

As Shahbal notes, the port, which was once the mainstay of Mombasa's economy, has moved to Nairobi, leaving the city to fend for itself. Tourism, too, is struggling, with small hotels that once served the port now facing deep distress and their employees and suppliers becoming collateral damage.

Shahbal warns that things will only get worse before they get better, citing a global recession that is surely on the horizon. For Kenya, this will mean less trade, fewer tourists, lower commodity prices, and more unemployment. The impact will be felt not only in Mombasa but also abroad, where many Kenyans will lose their jobs and remittances will reduce.

So, what must be done to turn things around? Shahbal suggests that the national government implement a Marshall Plan for Mombasa, which would involve inviting private sector investment to develop the Dongo Kundu Special Economic Zone (SEZ). He also proposes turning parts of Mombasa into free ports, allowing international airlines to land in the city, promoting the fishing industry, and aggressively marketing and sending youths to work abroad.

As Shahbal notes, the government must quickly take action to turn things around. The opportunity to do so is still available, but it will require bold and decisive action.

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