LGBTQ discrimination is costing East African economies Ksh646B annually, report reveals
A report by Open for Business, a coalition of global businesses, has revealed that rising discrimination against LGBTQ+ people is costing East African economies close to Ksh646 billion annually.
The 2025 report explored the current economic and business environments in four East African countries (Kenya, Rwanda, Tanzania, and Uganda) and demonstrated its findings through data analysis, case studies, and other primary research sources.
Through interviews with regional business leaders, multilateral leaders, entrepreneurs, and other sector players, Open for Business established that a series of private member bills in Uganda, Kenya, and Tanzania have threatened to pull the region back.
It noted that the continued discrimination cost the four countries close to Ksh646 billion annually and predicted more losses if they implemented other punitive measures against the queer groups.
“The headline finding – that discrimination against LGBTQ+ populations is costing East African economies collectively up to USD 5 billion annually – lays bare an uncomfortable truth: that laws that harm the LGBTQ+ community are standing in the way of prosperity and growth for all citizens in the region,” Open for Business CEO, Dominic Arnall, said in the report.
Warnings
According to the report, the cost of discrimination to Uganda, due to the passage of the Anti-Homosexuality Act (AHA) legislation, represented a significant percentage of its GDP in 2024. It revealed that Uganda was more likely to incur more losses.
The same was cautioned against in Kenya, with the report highlighting the Family Protection Bill sponsored by Homa Town MP Peter Kaluma, indicating that it is likely to cause more losses to the country.
“Amid increasing anti-LGBTQ+ sentiment, in 2023 Member of Parliament Peter Kaluma tabled the Family Protection Bill which seeks to further clamp down on homosexuality and heighten persecution of LGBTQ+ individuals. It foresees a wider remit than Uganda’s Anti-Homosexuality Act (AHA), with more severe punishments for homosexuality and bans on LGBTQ+ activities, marches, campaigns, and public cross-dressing, as well as allowing citizen’s arrests, among other things.”
“This will rise significantly if the proposed Kenyan Family Protection Bill is passed,” the report detailed.
The report, however, praised Rwanda, noting that it had created an environment for some transgender initiatives to thrive despite outlawing the practice.
“Rwanda stands out in the region for some positive progress. International donors are able to implement interventions targeted specifically at the LGBTQ+ community.”
Trump’s take on LGBTQ
Most East African countries received a boost after President Donald Trump openly denounced queer groups. Immediately after his inauguration, he announced that the US would only recognise two genders: male and female.
Trump further rolled out a raft of punitive measures targeting government officials who were promoting the transgender agenda, including barring them from serving in the military.
Although the move was met by some murmurs, Trump remained bullish over the matter.
President William Ruto was among the first leaders to welcome the stand against LGBTQ.
“Contrary to what has been happening in the past, this year we got some very welcome developments in the United States that, as a leading democracy, we have gotten to understand that the policy direction of the United States supports what we believe in. That boys must remain boys and men must remain men and women must remain women and girls must remain girls,” Dr Ruto said.
“We thank God that this year, the very first news from the United States in the new administration is to confirm what the Bible says, what our faith believes in and what our tradition firmly is grounded on.”
