13 per cent of companies shutdown through the COVID-19 pandemic or an equal one enterprise for each ten shut are but to renew operations.
That is in keeping with a brand new survey by the Kenya Personal Sector Alliance (KEPSA) performed throughout September and October which reveals a low restoration of macro-economic situations on the again of an ease to COVID-19 restrictions.
In keeping with the survey which featured 428 respondents throughout numerous financial sections, about 50 % of enterprise had been shut on the again of the outbreak of coronavirus.
23 per cent of the companies shut operations for lower than a month, one other 50 per cent closed store for 1-3 months whereas the remaining 27 per cent had been shut for 4 to six months.
Solely 37 per cent of the shut enterprise have since reopened leaving the continuity of the opposite 13 per cent in jeopardy.
The enterprise closures have largely hit out at micro-business with 75 per cent of enterprises with one to 10 staff having closed store following the arrival of the pandemic.
Compared, 73 per cent of small enterprises, 69 per cent of medium companies and 61 per cent of huge corporations have remained open all through the pandemic.
Companies within the tourism and schooling sectors have been the worst hit with 92 per cent and 57 per cent of the enterprises within the classes having shut down respectively.
33 per cent of companies in tourism are nonetheless shut whereas solely half of the companies within the schooling sector have reopened.
The enterprise closures have preceded business broad job cuts with 39 per cent of the surveyed corporations indicating that they had let go a part of their employees base.
Enterprises in wholesale & retail, tourism, schooling and development have led in job cuts with 75, 67, 57 and 46.8 per cent of entities within the segments indicating to have declared redundancies.
In the meantime, companies in finance and insurance coverage have reported zero layoffs whereas 13 per cent of enterprises in vitality and manufacturing has pointed to new hires within the interval.
The findings from KEPSA mirrors the darkish facet of the present state of the economic system with 51 per cent of corporations indicating they’ve barely recorved to half pre-COVID-19 ranges.
Quite the opposite, the Stannbic Financial institution Purchasing Managers Index (PMI) in October confirmed personal sector exercise at its highest on file with the continued ease of COVID-19 restriction measures aiding larger output and a resumption in hiring.
In the meantime, the substantive hit on tourism and schooling sectors was recorded within the Kenya Nationwide Bureau of Statistics (KNBS) quarter two GDP print which confirmed Kenya’s first economic contraction since September of 2008.
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