• About
  • Contact Us
Wednesday, May 25, 2022
Fursa Africa
No Result
View All Result
  • Login
  • News
    DUKE OF EDINBURGH, PRINCE PHILIP DEAD AT 99

    DUKE OF EDINBURGH, PRINCE PHILIP DEAD AT 99

    Rest Well, Mama Sarah Obama

    Rest Well, Mama Sarah Obama

    EAST AFRICA NEW FEMALE LEADER! TANZANIA’S LATEST PRESIDENT!

    EAST AFRICA NEW FEMALE LEADER! TANZANIA’S LATEST PRESIDENT!

    The Bulldozer Succumbs

    The Bulldozer Succumbs

    It Rains Everywhere: Insurance Sector Bowing to Covid 19

    Nairobi Hospital Vs Jubilee Insurance Standoff Solved

    Diary of an EMS First Responder: THE CHILLY RESCUE

    Diary of an EMS First Responder: THE CHILLY RESCUE

    Trending Tags

    • Commentary
    • Featured
    • Event
    • Editorial
  • Politics
  • Business
  • World
  • Tech
  • Lifestyle
  • Entertainment
  • Grandpa Musings
  • Patawera
  • Sports
  • Live Score
  • News
    DUKE OF EDINBURGH, PRINCE PHILIP DEAD AT 99

    DUKE OF EDINBURGH, PRINCE PHILIP DEAD AT 99

    Rest Well, Mama Sarah Obama

    Rest Well, Mama Sarah Obama

    EAST AFRICA NEW FEMALE LEADER! TANZANIA’S LATEST PRESIDENT!

    EAST AFRICA NEW FEMALE LEADER! TANZANIA’S LATEST PRESIDENT!

    The Bulldozer Succumbs

    The Bulldozer Succumbs

    It Rains Everywhere: Insurance Sector Bowing to Covid 19

    Nairobi Hospital Vs Jubilee Insurance Standoff Solved

    Diary of an EMS First Responder: THE CHILLY RESCUE

    Diary of an EMS First Responder: THE CHILLY RESCUE

    Trending Tags

    • Commentary
    • Featured
    • Event
    • Editorial
  • Politics
  • Business
  • World
  • Tech
  • Lifestyle
  • Entertainment
  • Grandpa Musings
  • Patawera
  • Sports
  • Live Score
No Result
View All Result
Fursa Africa
No Result
View All Result
Home Business

The Kenyan Economy on the trail of COVID-19

The Kenyan Economy on the trial of COVID-19

Fursaafrica by Fursaafrica
June 18, 2020
in Business
0 0
0
The Kenyan Economy on the trail of COVID-19
70
SHARES
72
VIEWS
Share on FacebookShare on LinkedinShare on TwitterShare on Whatsapp

In December, the World Health Organization (WHO) announced cases of pneumonia of unknown cases were detected. It was later announced as a corona virus outbreak. The virus continues to evolve with research ongoing to understand its dynamics. In terms of growth economically, it has impacted in disruption of global supply chains, mostly the tourism sector and other sectors of the economy have been adversely affected economically.


In financial markets the Nairobi Security Exchange (NSE) has been halted after its share index fell by more than 5%, wiping out investor’s portfolios due to panic selling. Foreign traders disposed of their equity holdings to purchase gold and fixed income securities. The banking and financial sector will also see a significant drop in revenues with SMEs being particularly vulnerable to the crisis and unable to service loans or conduct meaningful transactions. It is likely that there will be a significant increase in non-performing loans. The economic impact is certain to be very significant, there will be hundreds of businesses (mainly SMEs) that will close down and never revive because of this crisis and it will take a while and much more Government fiscal intervention to bring the economy back to life.

READ ALSO

How to Invest With as Little as KSH. 5,000

Advantages of Hiring an SEO Firm

The aviation industry estimates that airlines globally are set to loose in passenger revenues. If corona pandemic is pro-acted, the Kenya Airways (KQ) estimates in loosing at least Kshs. 800 million per month, noting that the situation could change more dramatically in the coming days as more restrictions are implemented in global travel. These measures include salary deductions, sending non-critical staff on annual leave immediately, and cancelling of their flights putting 50% of aircraft on long term storage.

Business in the ports of Mombasa has been significantly affected. Ships scheduled to dock have been cancelled following the outbreak. This has largely affected the cargo throughout in the port. It has resulted in businesses losses that have acutely felt in the supply chain, with the Standard Gauge Railway (SGR) registering a decline of 60%. The decline in cargo is a big blow to Kenya as it is expected to collect more revenue from SGR and pay the Kshs. 10 billion monthly loans to China Export and Import Bank.

Bulk of Kenya’s exports to other countries is adversely affected by corona. This will affect export earnings negatively due to weak demand. The low supply of imports from China and South Korea in terms of electronics, clothes and furniture many of which are imported from China are likely to decrease.

Covid-19 has affected the country’s exports of horticulture and agricultural goods. The horticulture and floriculture exports play a key role in earning foreign exchange, and along with the full decline of tourism and the hospitality sector, Kenya’s reserves of foreign currency are expected to be depleted at a faster rate putting some pressure on the Kenyan Shilling. The country’s fresh produce export market has dropped following the lock-down in some European markets. The floriculture industry is being particularly hard hit with large farms laying off workers and struggling to service their loans despite a general off-season for farms running at 30-40% of capacity. Coffee and tea exports are on the decline as well due to weak demand and low commodity prices in target markets.

Essential goods manufacturers recorded rises in revenues over the month of March. The largest manufacturer of pharmaceuticals in the country had its highest ever revenue in March as the Government, households and businesses in the value chain are buying both in caution and reaction. Food and beverage manufacturers will also continue to have strong revenues until household consumption begins to fade with stretched out incomes.

The real impact of Covid-19 on manufacturing economic performance will be seen at the start of the next quarter when household and business spending is likely to drop by about 50%. The reduced incomes and money in circulation will definitely stretch demand and will reverberate to the rest of the manufacturing sector.

On the business front, the Covid-19 pandemic has clearly illustrated the need of the country to explore alternatives and diversifying the supply chains to reduce dependency on the region. The crisis will end, but we must be ready with the right interventions to kick-start the economy.

Author:Susan Mbula Muli – Lover of Social Economics

The Review

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe

Related Posts

How to Invest With as Little as KSH. 5,000
Business

How to Invest With as Little as KSH. 5,000

June 24, 2021
Advantages of Hiring an SEO Firm
Business

Advantages of Hiring an SEO Firm

June 21, 2021
HOW TO START A BUSINESS DURING A PANDEMIC?
Business

HOW TO START A BUSINESS DURING A PANDEMIC?

April 26, 2021
Advantages of House Hacking
Business

Advantages of House Hacking

April 20, 2021
HOW TO START A SUCCESSFUL SIDE HUSTLE WHILE EMPLOYED
Business

HOW TO START A SUCCESSFUL SIDE HUSTLE WHILE EMPLOYED

March 25, 2021
Huh, did you say Budgeting?
Business

Huh, did you say Budgeting?

Next Post
Smart Evolution: The Internet of Things

Smart Evolution: The Internet of Things

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

HOW TO UPDATE DETAILS IN THE NEW HELB PORTAL

HOW TO UPDATE DETAILS IN THE NEW HELB PORTAL

February 5, 2021
“What you are is God’s gift to you, what you become is your gift to God” says Peninah of Nina’s Cuisines.

“What you are is God’s gift to you, what you become is your gift to God” says Peninah of Nina’s Cuisines.

Marriage in Crisis: Are you on a Firm Foundation?

Marriage in Crisis: Are you on a Firm Foundation?

June 9, 2020
Better Than Before: Re prioritizing Family During This Pandemic

Better Than Before: Re prioritizing Family During This Pandemic

June 27, 2020
Unemployed During This Pandemic? Follow Me.

Unemployed During This Pandemic? Follow Me.

June 17, 2020

EDITOR'S PICK

Vaping Vs Smoking

Vaping Vs Smoking

April 22, 2021
Teriyaki Pork Stir Fry

Teriyaki Pork Stir Fry

July 10, 2020
Jaundice

Jaundice

April 30, 2021
IN-BETWEEN PLACES

IN-BETWEEN PLACES

About

We are focused on talking about social, political, economic issues including business, technology,
investment, entrepreneurship, leadership, lifestyle, trade, globalization, poverty, environment,
and health-related matters.

Follow us

Categories

  • Blog
  • Business
  • Entertainment
  • Environment
  • Fashion
  • Food
  • Grandpa Musings
  • Health
  • Lifestyle
  • Music
  • News
  • Patawera
  • Politics
  • Sports
  • Startup Kings & Queens
  • Tech
  • World

Recent Posts

  • HOW TO PAY OFF DEBT USING DEBT SNOWBALL VS DEBT AVALANCHE
  • HOW TO ADULT TIPS
  • What do we know about LUPUS?
  • 3 MONEY RULES

Talk To Us

News – news@fursaafrica.com

Corporate- info@fursaafrica.com

Advertise- advertise@fursaafrica.com

Mobile-  +254735 649 821 | 0722 471 686

 

 

  • Advertise
  • Corporate Communications
  • News

© 2020 Fursa Africa Group - Maintained by Team Web Africa.

No Result
View All Result
  • News
  • Politics
  • Business
  • World
  • Tech
  • Lifestyle
  • Entertainment
  • Grandpa Musings
  • Patawera
  • Sports
  • Live Score

© 2020 Fursa Africa Group - Maintained by Team Web Africa.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In