NAIROBI, Kenya, Apr 19 – It will take time for most Small and Medium Enterprises (SMEs) to resume profitability in the current economy that has been hurt by the coronavirus pandemic.
This is according to Joram Mwinamo, the Founder and Leader of SNDBX, a platform that helps entrepreneurs to establish and grow their businesses.
Mwinamo said that the recovery of businesses will be pegged on several factors, among them time taken to vaccinate a large number of the Kenyan population against the virus.
Additionally, recovery for most SMEs is likely to happen at around 2023, mainly because there is an election looming in 2022 which will likely affect the Kenyan economy negatively.
“Nothing much is expected to change this year from last year’s performance. With next year being an election year, we also do not foresee major recovery because it is an election year. We are expecting to see major changes at around 2023,” he said.
The expert has therefore urged SMEs to ensure they maintain their activities at a level where they are can break even, in preparation for the recovery that will definitely come along the way.
“Also ensure you adopt practices that encourage the growth of business as well as trying to offer solutions that cater to problems surrounding the pandemic,” he added.
Data by the World Bank says that the pandemic and containment measures issued by the government to mitigate the spread of the virus are creating multiple challenges for Kenya’s private sector, with severe consequences for household jobs and incomes.
“COVID-19 poses an unprecedented shock to the economy, disrupting economic activity,” said Keith Hansen, World Bank Country Director for Kenya said in November 2020.
“The government, with the help of partners, needs to ensure that the shock remains temporary, by targeting support to the most vulnerable affected households.”