Using data to tell a story.



SOCIO-ECONOMIC IMPACT OF COVID-19 IN KENYA



Introduction.



Since the first COVID19 case was reported in Kenya on 12th March to date (9th December, 2020) 89661 confirmed cases, 70194 confirmed recoveries and 1552 confirmed deaths have been reported. The counties of Mombasa and Nairobi have faced the most severe effects. In response to the pandemic, the government introduced a series of containment policies. Among these policies were
• On 15th March,2020 all educational institutions were closed.• Public and private sector workers were directed to work from home wherever possible
• Social and religious gatherings were also banned.• Cashless transactions were encouraged.• A nation-wide curfew was introduced where movement was only allowed between
• Use of masks, handwashing and use of sanitizers in public places.
• Entry to the country was only limited to residents and citizens with a quarantine requirement of 14 days.
• International flights were banned even though they resumed on 1st August, 2020 although the travelers were required to provide. A COVID19 negative test before entry into the country.
• Cessation of movement in and out of Nairobi was restricted in and out of Nairobi Metropolitan area, Mombasa, Kilifi, Kwale and Mandera from April until 6th July.
• In September 2020, hotels were allowed to sell alcohol but restaurants are required to close by 8pm and should not sell alcohol until end of the month.
• Bars are to remain closed until further notice.
The government also enacted measures which were aimed at strengthening the health system and delivering household assistance. These measures are
• Soap and food aid.
• Cash transfers have been delivered via mobile payment to households in low-income informal settlements in Kenya’s urban centers.
Ministry of Education also provided guidelines on how to control the spread of the virus. These guidelines are
• Daily radio programs.
• Education television broadcasts.
• KICD’s Edu TV Kenya YouTube Channels
.• Digital learning resources from the Kenya Education Cloud.
Tax relief measures were put in place to lessen the financial burden on Kenyan citizens and businesses. The measures include
​A reduction of the VAT from 16% to 14%
• A reduction of the top personal income rate from 30% to 25%
• A reduction of the turnover tax rate for micro, small and medium enterprises from 3% to 1%.
• 100% tax reliefs for persons earning up to kshs.24000 per month
• As of 1st April ,2020 there was temporary suspension of listing of loan defaulters for persons or enterprises whose loans were in arrears.
The government implemented additional economic measures. These measures are
• The CBK gave a directive taking effective, March 17th, for banks to waive fees for bank account and mobile wallet transfers
• Mobile money transfers limits have been increased
.• Authorities reached a deal with commercial banks to restructure non-performing loans cause by COVID19 layoffs.
• The government disbursed Kshs. 1 billion and $ 5 million for health and tourism sector respectively.
• The international Finance Corporation disbursed a $50 million loan to Equity Bank Kenya to support SME’s.


Impact of Covid-19 on the private sector.



The COVID19 pandemic has caused social and economic disruptions thus has greatly affected the private sector. A survey conducted by Kenya COVID-19 BPS showed the effects of the pandemic on businesses, as shown below:

  • .• More than one third of the surveyed firms were closed or partially open. More firms in Nairobi were fully open as compared to firms in other regions as compared to firms in other regions.
  • Considering the size of a firm by the number of employees, larger firms (100+) are likely to remain open as compared to micro firms(0-4) who are likely to close by choice.




• Firms have recorded a decline in sales. 93% of firms reported a decline in sales in the last 30 days compared to the same period in 2019, while only 2 percent reported an increase in their sales. Firms in the accommodation and food sectors experienced the largest decline in their sales.






• The COVID19 pandemic has affected some economic sectors more compared to others. Most firms in agriculture and mining sector have remained open while the tourism sector has been highly affected.






Impact of covid-19 on the employment sector.



After World Health Organization (WHO) declared COVID-19 as a global pandemic, the first case was declared in Kenya in 12th March, 2020. President Uhuru Kenyatta, gave directives to help curb the virus. These are some of the effects they had on the employment sector
• Reduced wages and working hours.





• Some employees in adherence to these directives have sent some of the workers at home indefinitely. The pandemic has also hit hard the economy, thus leading to closure of many businesses thus leaving the employees jobless. Here is an analysis on the comparison between the rate of unemployment before and after the entry of COVID19 in the country .i.e. The first quarter of 2020 and the second quarter of 2020





Strict definition: Under the strict terms is defined as people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work.





Under relaxed definition: all persons in the working age population who are either employed or unemployed and the potential labor force.



SOCIO ECONOMIC IMPACT ON HOUSEHOLDS



The effects on the pandemic on the employment and the private sector has greatly affected the means of livelihood and income in the households. These are the effects of pandemic on households
• Change in working hours.







• Decrease in the income earned from all sectors in the economy.





-Women have been greatly affected by the pandemic since they have recorded a decrease in their earnings as compared to men as shown below.