Impact of the COVID-19 pandemic on micro, small, and medium enterprises (MSMEs)- Kenya report

As the economy gradually re-opened in Kenya, micro, small, and medium enterprises continued to feel the effects of the COVID-19 pandemic and earn less than they used to. The relaxation of restrictions restored transportation routes and enabled the easier flow of goods across locations, which improved supply chains. However, the adverse economic impact of the pandemic has reduced the purchasing power of customers significantly and forced them to spend more cautiously. This presents a challenge for entrepreneurs, who have been dealing with depressed demand for goods and services and low revenues on one hand and struggling to meet the rising expenses of their business and household on the other. This report unravels the impact of the pandemic on micro and small enterprises and highlights their coping strategies. It also provides recommendations for policymakers, financial institutions, and donor organizations to help these enterprises build resilience and recover.