Business activity to be largely unaffected by rising cases of Covid-19: expert 

NAIROBI, Kenya, Aug 13 – Despite the rising cases of coronavirus infection in some parts of the country, economic experts do not expect major disruptions in the private sector. 

Vinita Kotedia- Associate Analyst of Macroeconomic Analysis & Strategy at EFG-Hermes told Capital Business that expectations are for limited impact on businesses and the private sector over the remainder of the year.

She noted that when compared to last year, each segment saw a significant slowdown in economic activity, especially during the second half of 2020.

She added that the government’s decision to take selective lockdown measures and focus restrictions on counties that are most affected, rather than imposing restrictions across the whole country, has helped limit the slowdown in business activity.

For instance, in March, the government placed Nairobi and nearby counties under partial lockdown and closed schools and bars in those areas as a deadly third wave of Covid-19 gripped the country.

At the time, President Uhuru Kenyatta warned emergency measures were required to curb the highest rates of coronavirus infection seen in Kenya since the pandemic began a year ago.

Other counties that have been previously placed under lockdown are mostly drawn Nyanza and Western regions, which were the first to report the first case of the Delta variant.

Kotedia’s sentiments match those of a finding by Stanbic Bank indicating that despite the rise in cases, business conditions continue to improve, even though marginally.

In July for instance, the bank’s Purchasing Managers’ Index reported that the private sector had experience growth, although it had slowed down, compared to paces recorded earlier.

“Growth momentum in Kenya’s private sector slowed again at the start of the third quarter of the year, as surveyed
businesses reported weaker expansions in output, new orders, employment, and purchasing,” the survey said.