This archive report was first published on 6 August 2020.
Published on August 6, 2020, a report by Facebook in collaboration with the World Bank and Organisation for Economic Co-operation and Development (OECD) revealed that the COVID-19 pandemic has had a devastating impact on small businesses in Kenya.
According to the report, only 62% of small and medium-sized businesses (SMBs) on Facebook sampled in Kenya remain operational or are engaging in any revenue-generating activities. This is a stark contrast to the 100% of SMBs that were operational before the pandemic.
The report, which was derived from the Future of Business Survey conducted between January and May 2020, sampled 30,000 small business leaders in over 50 countries, including Kenya. The survey found that 65% of sampled businesses in Kenya have had to reduce their workforce due to the pandemic, while 75% of local businesses have registered lower sales compared to last year.
Furthermore, 47% of the sampled businesses in Kenya expect to experience cash flow challenges in the next few months. Digital sales have become increasingly important for SMBs, with 46% of Kenyan SMBs surveyed reporting that they make 25% or more of their sales digitally in the month of May.
Despite the challenges, a majority of the sampled local SMBs, 65%, reported being optimistic for the future. Globally, the survey indicates that more than a quarter of SMBs closed between January and May 2020, with the figure rising to more than 50% in some countries.
