This archive report was first published on 18 July 2020.
As the world grapples with the Covid-19 pandemic, Kenya is facing a daunting economic reality. Six months after the first reported case, the country has confirmed over 12,000 cases and 222 deaths, with the global toll standing at over 14 million cases and 600,000 deaths.
Published on July 18, 2020, the economic impact of the pandemic is already being felt, with the Treasury lowering its 2020 growth forecast from 6.2 per cent to 2.5 per cent. The aviation, hospitality, tourism, and horticulture sectors have been particularly affected, with the export sector also experiencing significant disruptions.
The pandemic has had a devastating impact on the livelihoods of vulnerable Kenyans, with approximately 14.3 million people affected. The informal sector, which employs 84 per cent of Kenyans, has been severely impacted, with many individuals struggling to meet their basic needs due to reduced income.
The closure of borders has also affected trade, leading to disruptions in the supply of staple foods from Uganda and Tanzania. The agriculture sector, already struggling with locust invasions, is facing significant challenges, with concerns over food shortages, particularly for maize, Kenya's staple food.
The pandemic has also highlighted the need for a more inclusive and sustainable economic model, one that prioritizes environmental and social resilience. As Kenya responds to the spread and impact of the coronavirus, it has the opportunity to chart a new path forward, one that builds a better future for all Kenyans.
Ultimately, the recovery efforts must prioritize decarbonization and the protection of Kenya's natural capital, ensuring that everyone in the country has the opportunity to thrive. This requires a clear recovery path that recognizes the critical role of environmental and natural capital, as well as attention to peace, good governance, gender equality, and human rights.
By Rogers Dhliwayo, Economics Advisor at the UNDP Kenya Country Office, and Julius Chokerah, Development Coordination Officer/Economist at the United Nations Resident Coordinators' Office, Kenya.
