This archive report was first published on 22 April 2020.
Kenya's Private Sector Unites Amid COVID-19 Crisis ¶
The COVID-19 pandemic has brought unprecedented disruption to our daily lives, with far-reaching social and financial consequences. Business closures, job losses, halted classroom studies, and overwhelmed healthcare systems are just a few of the devastating outcomes.
As the crisis deepens, some companies have implemented pay-cuts and forced unpaid leaves in their business continuity plans, while others have seen their export and import sectors come crumbling down due to border closures.
According to the Kenya Private Sector Alliance (KEPSA), the crisis will have a severe impact on economies worldwide, with Kenya's 2020 GDP growth rate expected to drop by 51% from 6.1% to 3.0%.
Among the economic sectors experiencing reduced demand are manufacturing (non-essential), education, tourism, and leisure, while essential services like agriculture, healthcare, and ICT have seen increased demand.
KEPSA has warned of massive job losses, with a likely range of 1.5M to 3.4M jobs in the short term, dependent on the impact in agriculture and tourism.
However, amidst the chaos, the business community in Kenya is taking the moral high ground, uniting to help mitigate the negative effects of COVID-19 on vulnerable communities.
As Vimal Shah, Chairman of Bidco Africa, notes, 'We understand our obligations to the communities where we live and work, and during this time, we have stepped up our efforts to ensure they deal with the challenges of food and hygiene.'
Logistics and courier companies are partnering with supermarkets to offer free and increased delivery of essential items, while donating hygiene products and food stuffs to feed children whose only source of meal was the school feeding programs.
The launch of the Business Community PartnerUp platform by Sustainable Inclusive Business is bringing organizations together to express their needs or share their initiatives towards a common force for good.
As Karin Boomsma, Director of Sustainable Inclusive Business, notes, 'For instance, farmers struggling to keep afloat in the current crisis, can now sell through organizations which are in return using the produce to feed vulnerable families.'
The COVID-19 pandemic has given us a chance to critically look at our economic structure, appreciate its strengths and weaknesses, and partner for the betterment of our society.
