Like other African countries, Kenya has seen far less cases of the novel Coronavirus, with only 50 people infected (30 March, 2020). Nevertheless, the country is not immune to the wider impacts of the global pandemic. With an economy that relies heavily on exports and tourism, Kenya is exposed to a significant economic impact in the coming months.
Kenya’s government has reacted quickly to these economic threats. President Uhuru Kenyatta has taken an 80% pay cut and is encouraging other government officials to do the same, to “share the burden occasioned by the global health pandemic”. The President also announced a complete tax relief for Kenyans earning gross salary of less than Sh24,000 and reduced income tax down from 30 percent to 25 percent.
In order to prevent the spread of the virus, the government has also imposed a curfew from 7pm to 5am. Despite being a necessary measure, the curfew has been said to be difficult for many Kenyans who work in the evenings. The ministry of agriculture has announced that it will provide additional food for those living in low-income areas.
One of our Sales Associate, Keziah Khalinditsa, explains the situation.
Kenya’s economy is driven by the agricultural sector, particularly horticulture, tea and coffee exports. At Nairobi’s weekly auction, the value of coffee declined by eight percent in comparison to the previous trading. “The weakness of coffee prices is due to the global spread of the coronavirus that is curbing demand for commodities, which includes coffee,” said Nairobi Coffee Exchange.
Around 70% of Kenya’s flowers are sold to Europe, where demand has dropped significantly. Many of ecoligo’s customers are in the floriculture industry and report an impact to their business. Nevertheless, they are optimistic that business will pick up again soon. Jefferson Karue from Simbi Roses, one of our customers in Thika, Kenya, explains his view.
ecoligo is in close contact to each of its clients and is committed to supporting them through the impacts of the pandemic. A guarantee fund has been launched to safeguard crowdinvestors against any possible impact and enable the continued journey towards the global energy transition. Read more here.