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Renewed Optimism Amidst Covid-19: Kenya's Businesses Adapt

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 12 May 2020.

Kenya's economy, like the rest of the world, was severely impacted by the Covid-19 pandemic. However, amidst the gloom, a renewed sense of optimism has emerged as businesses adapt to the new reality.

Since the first case was announced on March 13, 2020, several manufacturers have diverted their lines of business to produce essential healthcare provisions, such as personal protective equipment (PPEs), including gloves, masks, and full-body special protective medical wear.

According to Phyllis Wakiaga, Chief Executive of the Kenya Association of Manufacturers, several businesses have had to double their shifts to meet the increased demand for masks, sanitisers, ventilators, medicine, technology, and household essentials.

Trade and Industrialisation Cabinet Secretary Betty Maina visited Mutsi Motors and Kenyatta University to inspect prototypes of locally manufactured ventilators. The Kenyan automotive sector has offered to retool motor vehicle factories to make adaptations of ventilators, with firms like Mobius Motors and Associated Vehicles Assemblies exploring mechanisms and sourcing for funding to start local production.

Meanwhile, textile manufacturers have turned their seamstresses into mask-making enterprises, with Eldoret-based Rivatex and Kitui County Textile Centre (Kicotec) producing 30,000 masks daily. Tech giants, both local and foreign, have also stepped up efforts to ensure sustenance of the shift of majority of the workforce from offices to homes.

Safaricom saw a 70% rise in demand for home data use since the stay-at-home measures were put into action, while mobile Internet demand rose by 35%. Safaricom CEO Peter Ndegwa attributed the increase to study-from-home and increased social media and entertainment access.

Media-service providers like Netflix, DStv, Showmax, and video platforms like YouTube have also seen a surge in business as people stuck at home seek entertainment. To ease pressure on the telecommunications network, the streaming giants have implemented data traffic reduction measures by lowering live-streaming resolutions and picture resolution.

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