Despite virus gloom, some sectors booming

The Covid-19 pandemic is having a devastating impact on the Kenyan economy.

While the government is trying to implement emergency measures to contain its spread, individual and business life is slowly grinding to a halt.

Some companies have sent workers on unpaid leave while other workers have already been laid off. The situation is worsening as people embrace social distancing and increasingly become paranoid.

Moreover, the revenue being lost right now is not going to be recovered when situation stabilises.

While all sectors have been badly affected by Covid-19, there are some that are booming in this crisis. These include companies producing detergents, soap and hand sanitisers.

Similarly, protective gear producers have seen an upsurge in demand for their products. Providers of online services — money transfers, data services and movie streaming — are in business. Video conferencing providers are also flourishing.

Pharmaceutical companies are playing a big role in the crisis, be it the provision of drugs or researching for a vaccine. Others include suppliers of testing kits.

Healthcare providers like hospitals will record increased patients from coronavirus symptoms and other infections.

Online delivery service providers are doing fine as social distancing has discouraged many from physical contact and products and services have to be delivered to them.

Providers of food and food preservation appliances like freezers and fridges have experienced increased demand.

Sectors negatively affected include tourism, as global movement is restricted. In the investment banking sector, thousands will lose their jobs amid a slump in business and deals.

Most banks will lose money as individuals and businesses struggle to pay back loans. The Nairobi Securities Exchange market is at an all-time low, with trading being halted from time to time.

The traditional retail sector is feeling the heat, with people confined to their homes. In education, schools, colleges and universities are closed.

Hotels can only provide takeaway services while conventions and conferences have been cancelled. In the sporting arena, live games have been called off.

The oil and gas sector is experiencing decreased demand as people work from home. The global price of crude oil has plummeted.

Entertainment and gambling joints, together with theatres, have been closed. Gyms and fitness centres are also closed.

Construction has been stopped as every possible anti-corona measure is considered. In the transport sector, negative effects are being felt as Kenyans are advised to work from home. The airline industry is grounded as international flights are restricted.

The negatively affected sectors will need a rethink of strategy to kick-start after this pandemic.

The obvious strategy in these sectors will be to reduce costs of operations and be ready to return when conditions improve.

Some manufacturing companies in the world have changed their lines of production since the goods they produce are no longer in demand.

Chinese car manufacturer BYD has opened up production lines for surgical masks and hand sanitisers.

LVMH, the company behind luxury goods like Louis Vuitton, Dior and Givenchy, is also producing hand sanitisers. The affected sectors will probably struggle even if they re-open, but they will rise in the long run.