The effects of Covid 19 on small businesses in Kenya

The Coronavirus Disease 2019 (COVID-19) continues to spread across the world, leaving death and economic devastation in its wake. The Kenya government put in place measures to restrict spread of the disease centered around restricting or prohibiting travel and face-to-face interactions, creating significant challenges for businesses who had relied on close contact for their administration, supply chain, and/or the sale of their products. The most severe economic consequences of lockdown have largely fallen to the small business community in Kenya, which makes up 98% of the private sector and therefore has an enormous impact on the country’s economy. The precise extent to which the pandemic and the Government’s COVID-19 response measures had impacted businesses in the country was unknown. In turn, the Center for International Private
Enterprise (CIPE) and the Kenya National Chamber of Commerce & Industry (KNCCI), implemented a study to understand the impact of COVID-19 on business enterprises. The study aimed to identify challenges that businesses faced during the pandemic and ways that the government and relevant associations can further support these enterprises in dealing with the pandemic’s effects. The first phase of the study was conducted over a period of one month, from 25th November to 24th December 2020 preceded by a pilot phase between 24th September and 2nd October 2020.
Data was collected from over 100 mini markets (groceries), pharmacies (chemists), and restaurants (cafes) through a Google Forms survey administered either by phone interview or self-administration. Mini markets were selected since they represent a variety of value chains and the broader consumer economy. Pharmacies were surveyed due to the recent change in purchasing behavior of Kenyans, who
are avoiding health facilities during the pandemic. Restaurants were also included to highlight their economic vulnerability due to the pandemic[jnews_element_subscribe download_type=”button” button_download_icon=”fa-arrow-circle-down” button_download_text=”Get Full Report” file_id=”12426″ add_action=”email” button_text=”Download”]