This archive report was first published on 24 August 2020.
As the Covid-19 pandemic continues to affect businesses globally, informal area retailers in Nairobi are feeling the pinch. According to a recent study, more than 80 percent of retailers in the city's informal settlements reported demand and supply challenges last month.
Conducted between July 21 and 23, the survey targeted retailers in Gatina, Gitare-Marigo, Kibera, Korogocho, Kayole, Lunga Lunga, Majengo, Mathare, Mukuru, and Soweto. The study found that a majority of retailers attribute the disruption to an increase in prices of items (53 percent) and decrease in demand for commodities (46 percent).
"Other reasons include lack of money to restock (33 percent), lack of commodities from suppliers (20 percent) and Covid-19 movement restrictions (eight percent),” the study said.
Notably, the polled retailers also reported that local communities faced challenges in accessing local markets due to low purchasing power (94 percent), costly goods (41 percent), lack of items (18 percent) and fear of contracting Covid-19 (seven percent). However, the proportion of retailers reporting that community members were facing challenges in accessing markets decreased from 75 percent in June to 50 percent in July.
As a result of the pandemic, the government imposed restrictions in March, including a night curfew and movement restrictions in and out of Nairobi, Mombasa, Kilifi, and Kwale. The movement restrictions have since been lifted.
The study further revealed that 449 retailers closed down their businesses between March and June 2020 due to Covid-19 effects, while 330 were closed last month. The increase in prices also affected them, especially coming when the purchasing power of many Kenyans has been eroded by job losses and reduced pay.
