This archive report was first published on 6 July 2020.
Monday, July 6, 2020, marked a significant moment in Kenya's response to the COVID-19 pandemic. As the country struggled to contain the spread of the virus, a different story was unfolding - one of resilience and adaptability.
Carol Musyoka, a keen observer of the Kenyan entrepreneurial spirit, noted that the pandemic had brought out the best in Kenyans. In a webinar on personal finance management, she witnessed a large attendance of over 1,200 people, eager to learn how to navigate the challenging economic landscape.
Speakers at the webinar emphasized the importance of cutting back on unnecessary expenses and measuring one's personal financial runway to ensure survival. One speaker was particularly blunt, advising against investing in non-essential purchases, especially those that do not generate cash.
As Musyoka walked along the newly expanded Ngong Road, she observed a stark contrast between the luxury cars on display at used car yards and the solitary security guards waiting for customers. This scene, she noted, was a testament to the fact that Kenyans were already making decisions about unnecessary expenditure, including vehicular purchases.
Another speaker at the webinar warned against starting businesses without thorough research and feasibility studies. This advice was particularly relevant in the context of the pandemic, where many Kenyans had lost their jobs and were forced to seek alternative sources of income.
According to data from the Companies Registry, private company registrations had dipped to around 480 per week in March, but were now ticking up to around 550 per week. Business names, which represent sole proprietorships, had also increased, from an average of 1,400 per week to around 1,000 per week.
These numbers were a significant increase from the same period in June 2019, when there were 1,039 business names and 818 private companies registered. While it was difficult to determine the exact drivers behind this surge in business registrations, it was likely that previously employed persons were moving into the entrepreneurial space.
Other anecdotal evidence of the resilience of Kenyans included the number of private car owners selling fruits and vegetables from the boot of their cars on various roads in Nairobi's suburbs. Whatever the case, the Kenyan spirit had never been so evident.
As the government continued to demonstrate its commitment to ease of doing business, the challenge was now to ensure that these fledgling entrepreneurs could create a marketplace devoid of baffling tax encumbrances and byzantine county administrative licenses.
