This archive report was first published on 19 May 2020.
As the Covid-19 pandemic continues to disrupt local, regional, and international commerce, governments worldwide have been forced to intervene, setting aside trillions of shillings to keep entire industries and companies afloat.
According to the International Labour Organisation (ILO), the pandemic has had a devastating impact on the global workforce, with 1.6 billion workers in the informal economy facing the immediate danger of having their livelihoods destroyed permanently.
More than 436 million enterprises are at high risk of serious disruption, with 232 million among them in wholesale and retail, 111 million in manufacturing, 51 million in accommodation and food services, and 42 million in real estate and other sectors.
As a result, the ILO has called for urgent measures to protect jobs and cushion companies and enterprises.
"The ILO calls for urgent, targeted, and flexible measures to support workers and businesses, particularly smaller enterprises, those in the informal economy, and others who are vulnerable," said Guy Ryder, ILO Director-General.
Several governments have responded to the situation by introducing stimulus packages aimed at cushioning businesses and injecting cash into economies.
One of the largest stimulus packages was announced by the US government, which has committed $2 trillion (over Sh200 trillion) to redeem its crashing economy.
The package, known as the Cares (Coronavirus Aid, Relief, and Economic Security) Act, has enabled thousands of businesses to stay afloat while millions of workers receive something to live on.
Similarly, in East Africa, Kenya has taken the lead in measures to cushion businesses amid the pandemic havoc.
The Central Bank of Kenya (CBK) has released Sh15.4 billion to support tourism, real estate, trade, and agriculture sectors, which have been heavily hit by the Covid-19 pandemic.
CBK Governor Patrick Njoroge noted that micro, small, and medium-sized businesses (MSMEs) need to be supported, and the MPC is working on a scheme that would pump about Sh100 billion into the economy to support small businesses through the pandemic.
President Kenyatta has also announced a 100 per cent tax relief for persons earning gross monthly salaries of up to Sh24,000, as well as a reduction of income tax rate and resident income tax.
Other East African countries, however, have yet to commit as much resources to support businesses, focusing instead on releasing cash and food aid to support vulnerable families.
