This archive report was first published on 15 July 2020.
Published on July 15, 2020, a report co-authored by Facebook and the World Bank highlights the devastating impact of the COVID-19 pandemic on Kenyan small and medium-sized enterprises (SMEs).
The report, dubbed Global State of Businesses Report: How Small Businesses in Kenya have been impacted, reveals that Kenya has been the most affected by job losses due to the pandemic, with 65% of operational SMEs on Facebook in Kenya reporting a reduction in their workforce.
This is a stark contrast to other countries in the region, with 45% of operational SMEs in South Africa, 45% in Nigeria, and 47% in Ghana reporting similar job losses.
Furthermore, the report notes that small businesses in Kenya have seen a significant dip in revenue generation, with 75% of Kenyan SMEs on Facebook reporting lower sales this year compared to last year.
“The only way for SMBs in Kenya to survive the pandemic is to pivot to digital,” the report suggests, citing the example of Ireland where 65% of operational businesses on Facebook reported that 25% or more of their sales were made digitally in the past month.
According to the survey conducted between January and May 2020, more than a quarter of SMEs said they closed during this period due to COVID-19, with the figure rising to over 50% in some countries.
Small businesses in the tourism and hospitality sectors have been particularly hard hit, with 54% of tourism agencies and 47% of hospitality and event SMEs reporting that they were closed at the time of the survey.
However, the report also notes that both male and female-owned small businesses operational on Facebook in Kenya feel optimistic about the future of their business, with 65% of female-owned and 66% of male-owned businesses confirming their optimism.
