What Are the Impacts of Covid-19 to the Kenyan Economy?

Covid-19 has had a massive impact on the world. Think about it, not one thing had, up until now in our generation, managed to bring everything to a halt. Enter Corona virus and voila! The world suddenly came to a standstill.

So many economies have been affected by Covid-19, but with first world countries like the US and the US injecting billions into their shocked economies, one can`t help but wonder what will happen to the so called ‘developing’ countries. 

Let me put it in perspective, as reported by CNN, the UK is currently experiencing its worst recession in centuries, 300 years to be precise. It is not surprising that by August 2020 the UK government had spent over $208 billion (22 trillion Kenyan shillings) on its cumulative stimulus package.

The US didn’t joke either, a whooping, chest thumping $2 trillion stimulus package was availed to cushion Americans from the effects of economic slumps. 

Kenya is one of those developing countries where corruption takes a toll, a serious toll. People join the government to steal, loot from the common mwananchi.

Let’s take a quick look a look at some statistics   

Country	Stimulus Package in $
US	2 Trillion
UK	208 Billion
Kenya	522 Million

 

With the wealthy countries struggling to cope with Covid-19, it will be interesting to see how the poor countries fare in the war against the pandemic.

Top 5 Most Affected Industries By Covid-19 in Kenya

Similar to most nations, Kenya opted to close its borders and practically shut down the economy in an attempt to curb the virus. In retrospect, shutting down the economy doesn’t appear like a smart move, especially considering that several countries (Kenya included) elected to reopen their economies  even as the corona numbers continue to soar.

Below is a detailed list of Kenyan sector that have been most affected by Covid-19

1.       Tourism

Hands down, tourism has been the hardest hit sectors in the country. Besides large-scale agricultural production, Kenya is known for its ‘Safaris’ and the 7th Wonder of the world, ‘The Wildebeest Migration of Maasai Mara and Serengeti’.

With 2 entries in CNN Travel`s top three beaches in Africa, it’s crystal clear that Kenya is a vacation haven for vacation-seekers or travel enthusiasts.

 As revealed by the Star Newspaper, tourism contributed to 8.8% of Kenya’s GDP in 2018 and is responsible for over 1 million jobs in the country. And as Covid hit hard, the tourism industry had no option but to feel the heat.

A publication by UoN Research. org reveals that Kenya had 2,025,206 international visitors, a 1.2% increase from the previous year. With an annual expectation of approximately 2 million tourists, 2020 has been a shadow of the previous years, with Kenya only managing 20% of its usual guests. 

Below is a table revealing the number of tourists coming into Kenya from abroad as per the Kenya National Bureau of Statistics, 2019.

Countries Outside Africa Visiting Kenya	Number of Tourists
USA	245, 437
UK	181,484
India	122,649
China	84, 208
France	54, 979
Italy	54,607

 

2.       Education

The Education sector has experienced inconsistency like never before. School kids have broken the record for the longest holidays ever, with no Kenyan child reporting to school since the president officially announced the closure of schools in late March.

While some private schools have attempted to adjust accordingly by switching to zoom classes, less-fortunate children have had no option but to enjoy the overly-extended holidays. Props to the Kenyan government for trying to set up online learning channels. But still, a lot more needs to be done lest children in public schools continue to suffer.

Below is a table of K.C.SE candidates since 2017                

Year	Total Number of Candidates
2017	615, 773
2018	642, 204
2019	679, 222

 

With no students expected to exit high school this year, we at C.O.K (Call Out Kenya) wonder what the government will do to safeguard the welfare of the near 700,000 students expected to clear school this year. 

Universities and tertiary institutions have also been massively affected by the pandemic, with most feeling the heat including UON and JKUAT. But learning has continued in several institutions through Zoom and other online platforms.

3.       Religious Sector

During presidential briefings, you’ll often hear leaders (president included) claiming that Kenya is a God-fearing nation (The irony, yet leaders steal day and night, right?) In truth, however, Kenya is a religious country boasting an interesting blend of cultures and religions.

Whether Catholic, Hindu, Muslim or Protestant, there is no one church that hasn’t been affected by Covid. Several pastors have resorted to different techniques to make ends meet, with some of the hardest hit pastors even transforming into chefs and making food deliveries in Nairobi.

Picture this, no Sunday gatherings, no offerings and no tithes since March. Due to this, only churches with proper infrastructures have managed to stay afloat during this tricky period.

Churches are likely to continue feeling the heat even as the Corona curve flattens since people are still conscious of attending mass in large numbers.

Our Muslim brothers and sisters have for the first time in recent history skipped their mandatory Idd-ul-Fitr celebrations, a clear indication of just how massive Covid has hit the entire globe. 

4.       Entertainment

Let no musician lie to you that they haven’t felt the heat during this unfortunate Covid season. Sauti Sol admitted to losing millions in cancelled tickets and shows. Other local artists have been honest enough to admit that the lack of events has caused a serious strain in their lifestyles.

Clubs and Restaurants have also felt the heat. With it illegal to party or drink in clubs and restaurants in Kenya during Covid season, all restaurants and clubs lost 90% of their income, succumbing to new lows. In fact, 75% of Kenyan clubs had shut down due to lack of business for all those months.

The on and off alcoholic ban has also done little to cushion entrepreneurs in the entertainment industry. Bar owners have complained about losses in the tunes of millions due to idle stock lying around with no one to sell to.

5.       Sports

The sports industry has also been affected massively by Covid-19. Although not as severely affected as the Heavyweight sporting nations such as the UK, US, France and Germany, sports in Kenya has suffered greatly.

The government elected to provide a stimulus package to cushion sportsmen affected by the virus. But despite the efforts, you can`t help but pity our often underpaid sportsmen who had been rendered jobless by Covid before the reopening.

Unfortunately, Kenya`s sporting scene requires a lot of improvement before we become a world class sporting nation. Besides our athletics, volleyball and basketball (at times) teams, we don’t have a lot more to brag about.

Check out a list of the highest paid soccer players in 7 countries

 

Country	Weekly Salary in $
UK	489,635
Spain	654,000
Italy	750,000
France	732,904
Kenya	375

 

Final Takeaway

Wow, at least you’ve got to see what our Kenyan soccer stars make a week compared to the global superstars.

Let’s just hope that Kenya will pull up its socks in the fight against corruption and invest funds in some of the most affected industries.

We hope you enjoyed this read and found it informative. Till next time, keep it C.O.K. (Call Out Kenya) for well-researched, in-depth news.