COVID-19 and retailing in Kenya. What gives?
Small businesses in Kenya are facing the the most challenging times since time immemorial. Cash crunch, disappearing customers, employee reduduncies, the list is endless. The coronavirus pandemic continues to ravage businesses across the country with small businesses remainIing the most exposed, with cash flows affected severely. Some are now tinkering on the verge of defaulting on their loans. How effective have the measures by the government to cushion small businesses been and how has our employers confronted the new normal. With thousands of jobs at stake what is the way forward for the economy.
Unfortunately the developing world Africa included and Kenya included do not have social protection measures which in developed countries are called subsidies. Banks and telcos in Kenya came together and announced some measures to reduce the cost of transacting over their platforms so as reduce the cost of transferring money from the bank into the Telco wallets. The whole idea was to try to move transactions from the banking halls and physical cash into the digital platforms and make them as easy to transact on that platform as possible.
The other measure saw central bank encouraging banks to have discussions with their customers and either restructure the facilities for the existing customers or extend the repayment profile in a way that the customer can be able to be accommodated with depending on the difficulty of the customer has on repaying his loans and other credit facilities.
But there is some hope according to CGTN where some SME'S have started to get back on their feet despite of the economic downturn exp[erienced in kenya.