The economic cost of Kenya’s COVID-19 curfew
Kenya recently put in place a partial lockdown to curb the spread of COVID-19 with a full shutdown likely to be imposed in light of increasing number of infections.
Tue, 31 Mar 2020 14:48:12 GMT
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AI Generated Summary
- Implementation of the curfew in Kenya has led to reduced business hours, impacting productivity and efficiency.
- Small businesses in the microsector, tourism industry, manufacturing sector, and finance sector are among the hardest hit by the economic repercussions of COVID-19.
- While the government has introduced support measures, challenges such as raw material shortages, reduced tourism activities, and financial strain persist.
The recent implementation of a curfew in Kenya, lasting from 7 pm to 5 am daily, has significantly impacted the country's economy. Businesses are facing reduced productivity and efficiency due to limited operating hours and the directive for employees to work from home. Caroline Gathii, a Risk Expert, highlighted the potential consequences of a total lockdown, such as further restrictions on business operations, diminished availability of products and services, and a decline in people's ability to sustain themselves. While the government has introduced measures to support businesses, including tax reductions, loan restructuring, and payment of pending bills, many challenges remain unaddressed. Small businesses, particularly those in the microsector heavily reliant on imports from countries like China, are struggling to stay afloat. The tourism industry is facing a significant downturn with minimal tourist arrivals, prompting industry players to leverage social media for engagement and promotion. In the manufacturing sector, border closures have led to shortages of raw materials, forcing some businesses to cease operations. Additionally, the finance sector is feeling the impact as economic uncertainty affects loan uptake and financial transactions. Gathii emphasized the importance of finding innovative solutions and strategies to navigate the current economic landscape and mitigate the repercussions of the ongoing crisis.