As the world grapples with the Covid-19 global pandemic, the government has set in motion a raft of measures designed to not only arrest the spread of the coronavirus disease in Kenya but also ameliorate its negative financial and economic impact on the population.

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Many governments in the developed world are at different stages of deploying a variety of financial and social assistance mechanisms to help its citizens and business communities, who are struggling through the shocks associated with the pandemic.

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But many low- and middle-income countries, such as Kenya, lack the fiscal wherewithal or latitude to offer impactful interventional support to those most vulnerable to the related shocks. It will be interesting to see how the government manoeuvres the balance between its aggressive tax collection strategy and the need to provide incentives to cushion the vulnerable citizens from the impact of Covid-19.

DEPRESSED BUSINESS

The manufacturing and services sectors are staring at a depressed business outlook with a number of companies already contemplating layoffs or some element of downsizing. The informal employment sector, which largely relies on the multiplier effect of formal employment, seems likely to be hit hardest as a result of these developments.

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