Home Disease CoronaVirus (COVID-19) How Covid-19 is affecting Kenya economically

How Covid-19 is affecting Kenya economically

Just like the other world economies, the Kenyan economy is on a free fall following the devastating effects of Covid-19.

The Hotel Industry

Majority of the hotels in the country have closed fully or partially because of lack of guests. With the tourism industry almost coming to a halt, most of the hotels, travel agents and airlines are bound to take stringent measures to survive. Many have sent their employees home even on empty pockets.

With the current dusk to dawn curfew, night clubs have also been forced to close down.

The transport Industry

Several people are working from home as directed by the Ministry of Health to combat the spread of Covid-19. The booming transport industry is reporting losses as a result of the decrease in the number of commuters.

Export Markets

With a significant percentage of flights cancellations, Kenyan exporters are reporting huge losses. Fresh produce like flowers, fruits and vegetables are the worst hit. The ripple effect is being felt by even the small scale farmer who sells to exporters.

Import markets

Low volumes of cargo are already being experienced at the Port of Mombasa with a warning that if the pandemic is not contained worldwide, things could get worse.

The Stock market

The stock market is facing challenges as many traders are opting for safer investments such as government bonds. The prices have shown a downward trend since the reporting of the first Covid-19 case in Kenya.

Real Estate

Massive job loss is a factor that is likely to affect the real estate industry. Tenants are likely to default in rent payments. Shifting to low-cost houses or moving back to the village will soon be an option for those who cannot afford to live in their current homes.

Purchase of land as an investment or for settlement is now not a priority at the moment. Those in distress may end up selling their plots at rock bottom prices since the demand has gone down.

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