2020 was that year where every Kenyan felt a pinch in their pockets. With a three-month mandatory stay-at-home rule, a lot of establishment had to make changes to stay afloat.
The Kenyan economy took a dive with many of the top earner industries shut down due to Covid-19. Many sectors suffered in a number of ways. Let’s look at the Tourism sector. A top earner in Kenya’s revenue and with flights grounded, hotels closed, this industry saw a drop in revenue. The introduction curfew of 7pm and 9pm had all bars and restaurants operating for only four hours. With job losses, came increased prices for patrons in the limited time they could stay in the club.
Unfortunately, the tourism sector also supports an ecosystem in communities. Most lodges provide jobs to the locals in the community. With the closure of some properties, communities have lacked water, electricity and food that was provided by the hotels and lodges mostly in the park.
Stock Exchange
The stocks exchange has also seen a decline in the sale of stocks. There was a disruption in the financial markets. A lot of investors started disposing their shares for fears of the markets collapsing. There was a huge decrease on the security prices and shares lost their value tremendously. With families having tight budgets to survive, most people have had to sell off their stock to survive and the stock exchange took a hit with shares trading at an all time low.
Global supply chain
A lot of industries have seen a decline in sales, like horticulture and manufacturing. With all the restrictions, companies worked less hours and airlines saw a decrease in flights especially cargo.
With most countries on lock down, manufacturers had to cease production on some of their products, as majority of them expect raw materials from countries like China, UK and US. Imports were cut short, companies experienced losses and some completely shut down their workshops.
Job losses
If there is anything to show how the economy was disrupted, was the number of jobs lost in 2020. With Covid-19, we saw a lot of sectors closing down with no clear end in sight. Tourism, education, transport. All were affected.
According to the Kenya National Bureau of statistics, over 1.7 million jobs were lost in the periods between March and June 2020. Of this, 1.1 million jobs belonged to the youth.
Read: https://www.herbusiness.co.ke/the-effect-that-covid-19-has-had-on-jobs/
