This archive report was first published on 19 May 2020.
Kenya's manufacturing sector is reeling from the effects of the COVID-19 pandemic, with many businesses experiencing a significant drop in earnings.
At Crown Paints, the CEO Rakesh Rao has seen sales tumble by over 40% in just two months, with the company's warehouse filling up with paint faster than orders are coming in.
'We were okay until March, but after the lockdowns in Uganda and Rwanda, our customers stopped orders due to uncertainty,' Mr Rao said in an interview.
He added that priorities have shifted, with most customers focused on essentials like food and conserving cash.
Other manufacturers, such as Kenpoly, which sells plastics, are also feeling the pinch, with sales representatives reporting a significant drop in business.
However, some companies, like those producing hand sanitizers, are seeing an increase in demand, with the industry valued at Sh500 million per month.
Despite this, the sector remains under pressure, with many businesses struggling to import goods due to lockdowns and supply chain disruptions.
According to a survey by the Kenya Association of Manufacturers, 77.97% of its members source their inputs or export to China, making it difficult to import goods during the lockdown.
The association has raised concerns about delays in disbursing VAT refunds, which could further exacerbate the situation.
As the pandemic continues to affect the sector, manufacturers are calling for support to help them stay afloat.
