KEPSA says Kenya recording massive export losses due to COVID-19
The Kenya Private Sector Alliance (KEPSA) has revealed that Kenya is likely to experience a massive loss of its export markets in East Asia, Middle East and Europe. Among the exports likely to be affected the most include horticultural produce, tea and coffee, mineral ores, fruits, among other products. The country also faces reduced imports of crucial products including consumer and industrial products, motor vehicles, machinery, electronic equipment, appliances and accessories. China accounts for 21% of Kenya’s imports, thus USD 3.66 billion worth of products may need to be sourced elsewhere or substituted by local production due to the Covid-19 disruptions.
It further said the tourism and hospitality sector may see a decline of up to 40% according to a report by Mckinsey.
53% of the businesses that KEPSA surveyed were large companies with more than 100 employees.
According to the survey, 61% of the businesses reported negative business effects from the covid-19 outbreak, with financial losses incurred so far averaging below Ksh1 million. The Mckinsey’s report further warned of cross-sector impacts due to logistics challenges affecting maritime, air freight and land transport that may persist throughout the year.