Kenyans are beginning to feel the pinch of tough measures put in place to step up the fight against Covid-19.
The shutdown of the Mombasa Tea Auction on Monday afternoon signalled the escalation of the crisis in Coast and a national economic crisis wrought by the pandemic, coming days after the tourism sector ground to a halt with the closure of hotels and evacuation of tourists.
Meanwhile, the logistics sector around the Port of Mombasa is also reeling from the effects of a ban, in early March, on ships from nations stricken by Covid-19, a decision that coincided with cancellation of direct flights from Italy, Germany, Belgium, the Middle and Far East, which account for the bulk of tourists visiting the Kenyan Coast.
The Mombasa Tea Auction is one of the largest auctions in the world, where tea from Kenya, Uganda, Rwanda, Tanzania, Malawi, Ethiopia and the Democratic Republic of Congo is traded.
A report from the auction, early this week, revealed that over three million kilogrammes or 20 per cent of the volume of tea offered for sale at last Wednesday’s auction were not sold.
Markets affected
In the past three weeks, the volume of goods from China and other markets has dropped, which has had a devastating effect on large-, small- and medium-sized enterprises that rely on supply from Asia.
Some of the most affected sectors are the motor, cosmetic, beauty and machinery industries where a crippling shortage of spares and other wares has been reported.
But perhaps the greatest hit on the coastal economy is felt in the hotel and hospitality sector, which depends on domestic and foreign tourism.
“There are virtually no guests in hotels,” said Denis Gwaro, general manager of three-star Plaza Beach Hotel said.
Kenya Association of Hotelkeepers and Caterers, Coast branch Executive Officer Sam Ikwaye said when travelling stops globally, it is the hospitality industry that feels the pinch the most.
Dr Ikwaye explained further that the key source markets for Kenyan tourism have been badly ravaged by the virus.
Kenya Coast Tourist Association CEO Julius Owino also said hotels are currently having no clients.
Coast has an estimated 40,000 bed capacity with an average of 200 hotels that employ close to 500,000 people.
PrideInn Group of Hotels Regional Manager (Coast) Victor Shitakha urged the government to consider cushioning hoteliers.
“We have been very supportive of government guidelines and in better times have been paying our taxes. Since things are getting bad, we need assistance and this has to come from our own government,” he said.
PrideInn Group Managing Director Hasnain Noorani urged the government to reduce Value Added Tax for a couple of months until businesses recover.
In Nakuru County, tens of flower farms that employ thousands of employees have shut down.
Charles Wanjau, a person living with disability, is among hundreds who were sent home by the management of a Molo flower farm which had to destroy flowers worth millions due to the destabilised market.
“The company paid us for the days we had worked and closed indefinitely,” said Mr Wanjau.
Activities at the Wakulima Market, Nakuru’s main hub for fresh farm produce, are also slowly grinding to a halt.
The market chairperson Daniel Mwangi issued an advisory to suppliers to scale down their supplies following a looming closure.
In the South Rift, hoteliers have pleaded with the government to suspend taxation in light of recent events.
Chairman of Nakuru Tourism Association David Mwangi said hotels have been hit due to lack of bookings. Hotels in the town that have closed down include Sarova Woodlands, with a capacity of 145 rooms.
Christopher Komen, the general manager of Bontana Hotel, said the government should suspend Pay As You Earn (PAYE).
Mr Komen added the government should also cater for National Health Insurance Fund for hotel employees.
Lake Bogoria National Reserve Senior Warden James Kimaru said tourism has reduced by 90 per cent.
In Naivasha, over 2,000 workers have been sent on a two-week paid leave by flower farms due to the collapse of the Dutch auction, which takes over 50 per cent of exports from the country.
In the past one week, some flower farms have resorted to destroying blooms worth millions of shillings every day as they cannot access the EU market.
Proprietor of Maridadi Flower Farm Jack Kneppers said they would be making a major decision this week.
“Early in the week, we sent 150 workers home as we monitor the situation and nothing has changed meaning we could send more home,” said the farmer who has employed 750 workers.
According to Secretary General of Kenya Export, Floriculture, Horticulture and Allied Workers Union David Omulama, over 15 farms had already sent part of their workers home.
For Mr Luke Rutoh, a professional in the construction sector, the past week has been a difficult one.
“The Covid-19 pandemic situation has messed up everything but we have to follow measures put in place to prevent any risks of infection.
There is a lot of fear and our movement has also been restricted,” Rutoh told The Standard yesterday.
He said following the uncertainties, his family did bulk shopping about two weeks ago when fears of the pandemic spread. He added that they will replenish their basic needs to avoid regular visits to crowded areas in case of further restriction of movement.
In the North Rift, families are stocking essential supplies even as farmers in the agricultural-rich region asked the government to support the sector.
But in West Pokot, residents said a complete shutdown would be disastrous.
Julius Merikit from Sigor said: “West Pokot residents consume sugar, milk and maize floor from Uganda which is usually sold at a cheaper price. Hand-to-mouth is our daily feeding routine. We can’t imagine the negative impacts of a lockdown.”
Kenya National Chamber of Commerce and Industry, Vihiga County chapter chairperson Billy Nyonje said this is the time traders are most affected and lowering lending rates in banks alone will not make them make any profit.
“Different people get their livelihood through different ways. If their freedom of movement is curtailed, many will suffer in their houses and even die due to many other causes, including stress,” Dr Nyonje said.
Wycliffe Madolio, a boda boda operator at Majengo, said business had gone down and it was becoming difficult to make enough money in a single day.
“For us who depend on daily work to earn and provide for our families, it is already tough,” Madolio said.
In Mumias town, residents urged President Uhuru Kenyatta to issue a statement on how the government will cushion Kenyans who are currently home with no work.
In Kakamega, business people have started feeling the heat following the county government’s directive to close down open-air markets.
Vegetable vendors
The worst hit by the directive are second-hand clothes dealers and vegetable vendors.
Khat trader Cecily Maina said business had slowed down since the first case of Covid-19 was reported in Kenya.
In an effort to curb the spread of the disease, the Embu County Government last week relocated traders from the congested Kamuketha market in Embu town to Embu stadium.
And on Monday, the devolved government banned trade in miraa and muguka in all market centres.
Coffee and tea farmers in Mt Kenya region are also worried that the spread of Covid-19 will have a devastating effect on their earnings.
[Reports by Philip Mwakio, Bernard Sanga, Joackim Bwana, Anthony Githaiga, Mercy Kahenda, Robert Kiplagat, Kennedy Gachuhi, Titus Too, Osinde Obare, Irissheel Shanzu, Edward Kosut, Joseph Muchiri and Frida Kingori]
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