This archive report was first published on 18 July 2020.
Published on July 18, 2020, a report by Facebook in collaboration with the World Bank and the OECD revealed that Kenyan small businesses were among the worst hit in Sub-Saharan Africa. The report found that 65% of small businesses operating on Facebook in Kenya reduced their employee numbers as a result of the pandemic.
According to the report, Ghana followed closely with 47% of small businesses sending some workers home, while South Africa and Nigeria reported 45% of small businesses reducing staff due to low sales.
More than a quarter of businesses in over 50 countries closed down between January and May, exacerbating the global job crisis. The tourism and hospitality sector was particularly affected, with nearly two-thirds of small businesses globally reporting slow sales.
Kenyan small enterprises reported lower sales in the first five months of 2020 compared to a similar period last year, with 75% of businesses experiencing a decline. In contrast, Ghana reported 56% of its businesses recorded a decline in sales, while Nigeria and South Africa reported 59% and 67% respectively.
Despite high mobile and internet penetration in Kenya, only 46% of small businesses get more than 25% of their revenues from digital platforms. This compares to 68% small enterprises in Ghana and 62% in Nigeria who generate over a quarter of their sales online.
As the report notes, 'The only way for small businesses in Kenya to survive the pandemic is to pivot to digital.' In Ireland, 65% of operational businesses on Facebook reported that 25% or more of their sales were made digitally in the past month, highlighting the potential for Kenyan businesses to adapt to the digital landscape.
