Effects of Corvid 19 in the Kenyan Economy
Kenya reported its first corvid 19 case on thirteenth March 2020. The news was received in fear and disbelieve since it was not expected so soon. The virus has caused rapid corvid 19 economic effect to the Kenyan economy as discussed below.
Debt Accumulation
Most Kenyan business survive on loans that they repay later on interest which is a major boost to the Kenyan Economy. These loans come from banks, saccos, mobile apps Chamas among others. The repay date is always per month, per annum or as per agreed terms given by the lender.
However, most businesses and firms closed down due to lockdown and fear of getting the virus. The debtors have not paid interest as agreed for the last four months since business is poor leading to debt accumulation.
Even after lock down there is no hope of reimbursing the unpaid months. Businesses are not doing well as corvid 19 cases keep rising day by day. Now do you think the debtors will pay of feed their families?
Employment
Employment is a major source of income In Kenya. It helps in growth and development of Kenyan economy. Due prevention measures taken by the government to try and curb the virus from spreading most companies closed down. Other companies had to reduce the number of workers due to low output and social distance. This has led to rise in the rate of joblessness.
Housing
The housing sector in the recent year has made Kenyan economy grow. Also, many Kenyans have venture into it with a vision of making enormous profits. Due to corvid 19 the business has down due to lack of potential buyers.
Business survival
Businesses are closing down each and every day. This is because they cannot make enough profit to pay the rent areas, replace stock and pay their employees. Corvid 19 has pulled down Kenyan economy so fast.
Conclusion
The pandemic is here to stay so we shall have to mitigate ways of surviving in it and bring back our Kenyan economy. It is sad to see how or Kenyan shilling is weakening day by day against the dollar. Let us all keep safe, wash hands, wear masks and keep distance.