A new report shared by Agusto & Co. Limited, a leading Pan-African credit rating agency, on Wednesday, May 6, has categorized the 7 biggest winners in the country following the COVID-19 pandemic.
"Kenya’s Big 4 Agenda will be sacrificed as more resources are channelled towards curtailing the spread of the coronavirus. Gross Domestic Product (GDP) growth is also expected to fall below 2% should the Covid-19 pandemic and attendant lockdown be sustained beyond the second quarter," reads a section of the report.
Classified under various industries and the projected impact, the report seen by Kenyans.co.ke listed the big winners as follows:
Information & Communication
The current stay-at-home directive has changed this particular industry, forcing it to evolve earlier than expected.
The period has seen a major spike in phone calls, messages, use of the internet and heavy media consumption.
Healthcare
"In March and April 2020, demand for essential and pharmaceutical goods surged as Kenyans continued to buy items both for precautionary and reactionary motives," reads an excerpt from the report.
Based on the Ministry of Health's projection of an increase in confirmed cases following the roll-out of targeted mass testing across the country, the pharmaceutical industry is expected to peak
On April 2, Health CS Mutahi Kagwe announced that Kenya had embarked on the process of hiring 5,000 health workers.
Wholesale & Retail Trade – food & other essential goods
Agusto & Co. Limited classified this particular sector as one that would face little to none of the negative impacts of Covid-19.
The report further predicts the surge in demand for these items to hold until the second part of the year.
"We expect the real impact of COVID-19 on manufacturers of essential and pharmaceutical goods to be felt from the second half of the year as household and business income and spending starts declining," the report reads in part.
Electricity & Water Supply, Wholesale & Retail Trade (non-essential goods) and Financial & Insurance activities are also listed as sectors that will not be adversely affected by the global pandemic.
Losers
However, agriculture, manufacturing, tourism and financial services are expected to experience high levels of disruption.
"With limited international and regional flights and weak demand (and low commodity prices) in major markets in Europe and Asia, Kenya’s tea, coffee and cut-flowers exports are challenged, leading to mass layoffs within the sector.
"Farms may also struggle to service their loans with most farms currently running at a capacity of less than 50%." the projection further reads.
The credit rating agency recommended the immediate implementation of stimulus packages (domestic and international), to cushion the adverse impact of the slow growth on businesses.
