Nairobi, March 11 — As the world scare from the coronavirus also known as the COVID-19 intensifies, many businesses across the world continue to register losses due to movement restrictions that have resulted in slow or no trade at all.
The virus that broke out from the Chinese city of Wuhan in December, and has so far killed more than 4,600 people across the world and infected close to 126,000 has been the recent pandemic that the World Health Organization (WHO) declared a global health emergency on January 30.
On March 11, the United Nations health agency declared the virus a global pandemic.
But as most Asian and European countries are reeling from deaths from the disease, a few countries in Africa have reported cases of infections. But even so, many of these countries are suffering the consequences of the travel restrictions that are being imposed by governments as a way to curb the spread of the virus.
Kenya is among the countries suffering an economic loss from this disease even though the country has not confirmed even a single case. In the past month or so, about 20 suspected cases of the virus have been tested and dismissed after being found to be negative.
The hospitality sector has been badly hit in the country and also the region, as hotels register low bookings. International conferences that would normally happen in Kenya have also been banned by the government, with the Ministry of Health saying that it is for the good of the people, and for reducing the chances for the virus to spread.
On March 10, the Kenya Private Sector Alliance launched a report that examined the impact of coronavirus (COVID-19) on Kenya’s economy.
“21% of Kenya’s total imports value is sourced from China while trade between African and China is 12%. In the first two months of 2020 Kenya’s imports from China declined by 36.6%. Similarly, exports to China have been affected due to reduced demand– these include Kenyan avocadoes, tea, coffee, and other products”, part of the report read.
The Cabinet Secretary, Mutahi Kagwe, however said that the government will allow one empty plan from Italy to land in Kenya to evacuate about 800 Italians who are stuck in the country.
His Zanzibar counterpart, Hamad Rashid on Friday banned Italian tourists from the east African island saying that the move was to control the spread of the outbreak.
Italy has been the second worst hit country outside of Asia, coming second after China in terms of recorded number of deaths.
The coastal town of Malindi in Kenya’s Kilifi County near Mombasa, the hub of tourism that normally registers full hotel bookings is also deserted. The town, normally referred to as the Kenyan Italy has seen a drop in hotel bookings as well.
“In 2018 alone, the Chinese spent USD 277 billion in international tourism, and in 2019, China predicted around 166 million outbound travelers. Therefore, when the Chinese are not traveling or restricted to travel, just assume during the first quarter of 2020, that means a loss of USD69 billion and might be increased more than we can imagine, hence the global tourism industry will suffer. As far as global tourism, the industry is concerned, when the Chinese do not travel”, says Hasnain Noorani, the Pride Inn Hotels Managing Director.
“While the ultimate outcome is unknown, it is clear the economic impact will be significant as China’s travel market to Africa and Kenya in particular is one of the fastest-growing, so the losses are expected to be much bigger than those from the 2003 SARS outbreak, moreover, the spread of the illness, and the fear that has come with it, has caused companies doing business in China to close offices and factories, and restrict travel to and from the country. Airlines and cruise ships have canceled flights and tours in the country”, Noorani added.
Apart from the tourism and hospitality industry, trade in Nairobi and other parts of the country has also been affected as many traders who normally get their stock from China now have a hard time getting the products they trade in delivered to them.
However, farmers have not also been left out. Last year in April, the Kenyan government signed an agreement with the Chinese government allowing Kenyan farmers to export avocados to China. After the halting of flights to China, farmers are now recording losses as they now lack a market for their produce.
Peter Kinuya, an avocado farmer in Kiambu County says that he has started experiencing losses as his fruits are no longer going for export.
“Up until December, we had a very steady demand for avocados and China was our best buyer since the government has assisted us to get market over there. Now, I don’t know what to do because I am a farmer, and I won’t say that I have another job to feed my family”, said the 52-year-old father of five.
Elsewhere in Nairobi’s Gikomba market, traders in second-hand clothes are also feeling the effects of the virus. Monica Mueni has just arrived in the market to check for her luggage. And even though she is able to get what she says is half of what she normally gets and goes to sell in Kitui, Eastern Kenya.
“My supplier has just told me that this was what was left from the last cargo ship in December and that no other ship has arrived with the luggage since”, Mueni says.
Tabitha Wambui, Mueni’s supplier says that things are not good as everyone is now feeling the heat and looking for ways to adapt.
“As for me, I have no idea what to do because I had started this business after getting fired from my job. I have a family of three kids and two orphans and my parents are depending on me since I am the firstborn in the family”, says Wambui, a 38-year-old mother of three.
“All we do is ask God to lead the scientists to a cure for the viral disease”, Wambui concludes.
