Emerging Impacts of COVID–19 on the Kenyan Food and Beverage Manufacturing Sector

Abstract

This brief presents the result of a rapid assessment on how the containment measures have affected the performance of the Kenyan food and beverage manufacturing industry and what measure companies need to support them during the pandemic. The vast majority of surveyed firms were still operating in May 2020, but most of them at reduced capacity. Many firms had to pay higher prices for raw materials and for procuring these materials. Most firms adjusted their production patterns in response to the situation, in particular by reducing production volumes of some products. Companies for the most part held on to their employees, but at times had to reduce salaries. Many increased shifts to ensure social distancing. Around 70% of companies were impacted by foreign governments’ measures, in particular through delays and additional requirements at the border as well as drops in exports. To reduce the economic impact of Covid-19 containment measures, companies most frequently called for practical and business-survival interventions, such as measures to facilitate the movement of goods, tax relief and support in the area of health and safety.