A wave of job losses that has hit Kenya in the last one year worsened by the Covid-19 pandemic shows no sign of stopping. This is the fifth month since the virus was first reported in Kenya, quickly moving from a health to an economic crisis that is leaving a trail of shattered livelihoods to levels not seen before in decades. Latest government monthly data on health, labour market, transport costs and housing details a rising number of Kenyans out of work owing to the virus. Covid 19 Time Series
Six out of 10 households blamed the virus for their unemployment, says the Kenya National Bureau of Statistics (KNBS) survey for the month of May. With fallen incomes, Kenyans are struggling to pay rent, transport and put food on their table, adds the survey. Estimates show that more than one million Kenyans are now out of work with the economic recovery from the virus shock expected to take years. At the onset, the pandemic’s impact on jobs was first felt in the tourism industry, which has lost Sh80 billion in revenue, according to official data. Hotels were among the biggest casualties of the deadly virus with their mainstay – tourism, events and conferences – drying up owing to restrictions in travel and other measures meant to curb its spread. “We lost 50 per cent of our revenue of Sh160 billion with the second half of the year being as good as zero,” said Tourism CS Najib Balala last month. Barely into this month, InterContinental Hotel fired all its employees, saying it was ending its Kenyan operations citing the coronavirus pandemic. Employees were given a notice of redundancy, with the firm moving to terminate its Nairobi hotel lease. It is not the first or the last prime hotel that might shut. Serena Hotels had in May sent its entire staff on unpaid leave with Managing Director Mahmud Janmohamed describing the business as being in a “desperate situation”. Owners of the iconic Fairmont Norfolk also announced they were shutting indefinitely and would fire all employees. The owners announced that the Fairmont Norfolk and Fairmont Mara Safari Club would cease operations. Despite international flights resuming earlier this month, aviation still ranks high among the worst affected sectors of the economy. The International Air Transport Association (IATA) forecasts that airlines could post a 20.1 per cent drop in profit margin this year, losing […]
