Political instability remains a major disruptor of tourism-dependent economies, particularly in destinations where livelihoods and employment rely heavily on visitor flows. In Kenya’s coastal region, Mombasa, Diani, and Malindi represent key tourism hubs that generate income and employment for hotels, tourism suppliers, and local communities. Despite their economic importance, these areas remain vulnerable to political shocks such as the 2007–2008 post-election violence and subsequent election-related tensions. This study examined the impacts of political instability on income and employment in the tourism sector in Mombasa, Diani, and Malindi, Kenya. The study was grounded on Political Risk Theory and Sustainable Livelihoods Framework. It adopted a case study research design and used a mixed-methods approach involving questionnaires, interviews, and focus group discussions. A sample of 284 respondents comprising hotel managers, tourism suppliers, and local community members was selected using purposive and simple random sampling techniques. Quantitative data were analyzed using descriptive statistics and chi-square tests, while qualitative data were analyzed thematically. Findings indicate that political instability significantly reduces tourism income through declining tourist arrivals, cancellations, and reduced occupancy rates in hotels. The 2007 post-election violence led to substantial revenue losses, business closures, and debt accumulation among tourism suppliers. Employment levels were also negatively affected through layoffs, salary reductions, and increased job insecurity across the tourism value chain. At the community level, instability resulted in widespread unemployment, loss of livelihoods, and increased socio-economic vulnerability. Statistical results confirmed a significant relationship between political instability and reduced tourism business performance (χ² = 10.977, p = 0.004). The study concludes that political instability exerts both direct and indirect adverse effects on tourism income and employment in coastal Kenya. Strengthening political stability and enhancing tourism resilience strategies are essential for safeguarding livelihoods and sustaining tourism-driven development in Mombasa, Diani, and Malindi.
References
Alon, I., & Herbert, T. T. (2009). A stranger in a strange land: Micro political risk and the multinational firm. Business Horizons, 52(2), 127–137. https://doi.org/10.1016/j.bushor.2008.10.001
Chisadza, C., Clance, M., Gupta, R., & Wanke, P. (2022). Uncertainty and tourism in Africa. Tourism Economics, 28(4), 964–978. https://doi.org/10.1177/1354816620969998
Collinson, S., Elhawary, S., & Muggah, R. (2003). Politics, protection and livelihoods: A comparative analysis of the impact of humanitarian action on livelihoods in complex political emergencies. Humanitarian Policy Group, Overseas Development Institute.
Dangi, T. B., & Jamal, T. (2016). An integrated approach to "sustainable community-based tourism." Sustainability, 8(5), 475. https://doi.org/10.3390/su8050475
Dupas, P., & Robinson, J. (2012). The (hidden) costs of political instability: Evidence from Kenya's 2007 election crisis. Journal of Development Economics, 99(2), 314–329. https://doi.org/10.1016/j.jdeveco.2012.03.002
Fitzpatrick, M. (1983). The definition and assessment of political risk in international business: A review of the literature. The Academy of Management Review, 8(2), 249–254. https://doi.org/10.2307/257750
Howell, L. D., & Chaddick, B. (1994). Models of political risk for foreign investment and trade: An assessment of three approaches. Columbia Journal of World Business, 29(3), 70–91.
Mwangi, J. K. (2015). An Evaluation of Accommodation Challenges Faced by Seasonal Commercial Workers During Tourism Peak Season in Malindi Town, Kenya (Doctoral dissertation, Kenyatta University).
Kimani, J. (2021). Antecedents of travel advisories on performance of the hotel industry in Kenya: A case of five-star hotels in Nairobi County [Unpublished master's thesis]. https://www.researchgate.net/publication/385287457
Kinyanjui, J. (2014). The impact of terrorism on foreign direct investment in Kenya [Unpublished manuscript]. University of Nairobi.
Kiprono, S., & Buigut, S. (2018). Effect of terrorism on tourism demand. International Journal of Economics and Finance, 10(5), 1–15. https://doi.org/10.5539/ijef.v10n5p1
Lautze, S., & Raven-Roberts, A. (2003). Violence and complex humanitarian emergencies: Implications for livelihoods models (HPG Discussion Paper). Overseas Development Institute.
Lawton, T. C., Rajwani, T., & Doh, J. P. (2013). The antecedents of political capabilities: A study of ownership, cross-border activity and organization at home and abroad. Strategic Management Journal, 34(11), 1372–1389. https://doi.org/10.1002/smj.2074
Manaliyo, J. C. (2021). The relationship between political risk and employment in tourism: A case of South Africa. Eurasian Journal of Social Sciences, 9(2), 78–88. https://doi.org/10.15604/ejss.2021.09.02.007
Masinde, B. K., Buigut, S., & Mung'atu, J. (2016). Modelling the temporal effect of terrorism on tourism in Kenya. International Journal of Economics and Finance, 8(12), 10–20. https://doi.org/10.5539/ijef.v8n12p10
Mayaka, M. A., & Prasad, H. (2012). Tourism in Kenya: An analysis of strategic issues and challenges. Tourism Management Perspectives, 1, 48–56. https://doi.org/10.1016/j.tmp.2011.12.008
Morse, S., & McNamara, N. (2013). Sustainable livelihood approach: A critique of theory and practice. Springer.
Murray, C. (2000). Livelihoods research: Some conceptual and methodological issues. Background Paper 5, Chronic Poverty Research Centre.
Muturi, E. (2021). Effect of post-election violence on the performance of tourism industry: A critical literature review. International Journal of Modern Hospitality and Tourism, 1(1), 21–32. https://iprjb.org/journals/index.php/IJMHT/article/view/1362
Neagu, O. (2017). The impact of terrorism on tourism in North African countries. Journal of Tourism and Hospitality Management, 5(2), 45–58. https://doi.org/10.15640/jthm.v5n2a5
Neumayer, E. (2004). The impact of political violence on tourism: Dynamic cross-national estimation. Journal of Conflict Resolution, 48(2), 259–281. https://doi.org/10.1177/0022002703262862
Njoya, E. T., & Seetaram, N. (2022). The effects of diminished tourism arrivals and expenditures caused by terrorism and political unrest on the Kenyan economy. Economies, 10(8), 191. https://doi.org/10.3390/economies10080191
Oetzel, J., & Oh, C. H. (2015). The impact of political risk on firm-level investments in the global renewable energy sector. Energy Policy, 78, 154–161. https://doi.org/10.1016/j.enpol.2014.12.016
Robock, S. H. (1971). Political risk: Identification and assessment. Columbia Journal of World Business, 6(4), 6–20.
Root, F. R. (1968). U.S. business abroad and political risk. MSU Business Topics, Michigan State University.
Saha, S., & Yap, G. (2014). The moderation effects of political instability and terrorism on tourism development: A cross-country panel analysis. Journal of Travel Research, 53(5), 509–521. https://doi.org/10.1177/0047287513496475
Santana-Gallego, M., & Fourie, J. (2022). Tourism falls apart: How insecurity affects African tourism. Tourism Economics, 28(4), 995–1008. https://doi.org/10.1177/1354816620978128
Stone, M. T., & Nyaupane, G. P. (2017). Rethinking community-based tourism in protected areas: A case study of the Chobe Enclave, Botswana. Journal of Sustainable Tourism, 25(6), 838–855. https://doi.org/10.1080/09669582.2016.1247827
Tchouamou Njoya, E., & Nikitas, A. (2022). The effects of diminished tourism arrivals and expenditures caused by terrorism and political unrest on the Kenyan economy. Economies, 10(8), 191. https://doi.org/10.3390/economies10080191
Thiongo, M., Mwangi, P., & Otieno, J. (2022). Types of political violence that influence tourism security in Mombasa and Nairobi Counties, Kenya (1992–2024): Exploring relationships and consequences. International Journal of Research and Scientific Studies. https://ijrss.org/index.php/ijrss/article/view/928
Tomazos, K. (2017). Egypt's tourism industry and the Arab Spring. In R. Butler & W. Suntikul (Eds.), Tourism and political change (2nd ed., pp. 141–160). Goodfellow Publishers. https://www.researchgate.net/publication/316049640