This archive report was first published on 7 May 2020.
As the COVID-19 pandemic continues to spread globally, Kenya's economy is feeling the pinch. According to the World Bank, the country's GDP growth in 2020 is projected to be 1.5 per cent.
One of the sectors most affected is the hospitality industry, with many businesses forced to close down or send their staff to work from home. The transport sector is also experiencing a decline, with fewer people traveling due to government directives such as curfews and social distancing.
Real estate consultancy firm Knight Frank has reported a 68 per cent decline in demand for office spaces in the first quarter of 2020. This decline is attributed to corporates placing major decisions on 'pause' while they assess their position.
Ben Woodhams, Knight Frank Kenya's managing director, stated, 'We have been monitoring the market closely and our agents and occupier services teams are working hard to ensure we provide the necessary assistance to all our clients as we are in a rapidly evolving situation. These are challenging times and we must all innovate to ensure business continuity.'
Pharmacies and leisure traders selling exercise equipment have seen a steady stream of shoppers, while online shopping and deliveries have increased as stores collaborate with delivery partners to offer customers convenience.
Hotels have been forced to close down business, with the sector relying heavily on meetings, incentives, exhibitions, and conferences. The ban on international flights has hit the sector hard, leading to a decline in sales of houses and rental prices in Nairobi.
According to Knight Frank Kenya, there is a decline in international rental inquiries and by extension the expatriate market, as some international prospective tenants have stopped their search and gone back to their home countries for the time being.
Majority of the large projects will remain at a halt due to delays in the global supply chain.
