• About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud
Sunday, February 5, 2023
  • Login
  • Register
No Result
View All Result
NEWSLETTER
Kenyan Wallstreet
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
No Result
View All Result
Kenyan Wallstreet
No Result
View All Result

Kenyan Firms Face Tough Times

Jackson OkothbyJackson Okoth
April 8, 2020
in Kenyan News
Reading Time: 3 mins read
jibran 1

Kenyan firms experienced one of the worst conditions in March this year, as many suffered from pandemic-related fall in sales, shortage of raw materials and decline in the number of customers.

According to the latest Purchase Manager Index(PMI)Survey Data, the March readings fell significantly to 37.5, down from 49.0 in February 2020. This is the second-worst reading in the survey’s history.

Figures above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

Fj8qeFoXkAEPAzj
ADVERTISEMENT

“The sharp drop in the PMI doesn’t really come as a surprise. The negative impact of COVID-19 is quite broad-based and is likely to affect various sectors across the economy. However, the tourism and floriculture sectors have been hit the hardest so far, admittedly due to global cross border travel restrictions and waning luxury spending in markets such as Europe,” said Jibran Qureishi, Regional Economist E.A at Stanbic Bank.

Purchasing Managers’ Index™ (PMI™) surveys are now available in over 40 countries and also for key regions including the Eurozone. They are the most closely-watched business surveys in the world, favored by central bank officials, financial markets participants, and decision-makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends

Many Kenyan firms surveyed in March, said worries around the virus meant that customers canceled or reduced new orders, leading to a steep fall in total sales. This is the second-worst reading in PMI’s history in Kenya.

New orders from foreign clients declined at a record pace in March as the pandemic led to a marked reduction in exports worldwide. Kenyan businesses particularly noted a drop in new orders from Europe.

For the first time in 11 months, companies reported less pressure on both current workload requirements and backlogs. Input buying also reduced, leading to a solid decline in inventory levels.

The shortage of many raw materials in March is attributed to the pandemic, with firms sourcing their inputs from China, one of the most affected nations.

Thus, the price of raw materials has risen at the quickest pace since June last year. While weaker demand for inputs led to faster delivery, reduced availability meant that the rate of improvement was only modest.

Some firms raised prices to counteract falling sales revenues, but others reduced prices in an effort to revive consumer demand.

Despite increase in confirmed COVID-19 cases in Kenya, firms remain optimistic about the future. Many have cited plans to widen products and services and open new branches. Others have put their plans on hold until the virus is brought under control.

“Sourcing raw materials from markets such as China has been cumbersome. Yet, Chinese factories are likely to restart production as early as mid-April which may somewhat soften this negative impact. Arguably, there will be a notable impact on economic output this year as supply chains globally are disrupted and negative demand shocks are felt too. But of course timing will be everything. The longer the duration, the more acute or severe the impact will be,” said Mr Qureishi.

RELATED:Poor cash flow, bad weather hit businesses – PMI


Previous Post

Kenya Bans Non-Essential Movement In & Out of City

Next Post

Horticulture Sector Loses KSh8 Billion to COVID-19

Related Posts

Flutterwave Raises $250 Million in Series D Funding

Kenyan Govt Drops charges of financial impropriety against Flutterwave

February 5, 2023
NSE

NSE Amends Trading Regulations to Accommodate Block Trades

February 5, 2023

Kenya to Begin Exporting High Value-added Tea to Australia

February 2, 2023

Mawingu Secures KES 1.12 Billion to Expand Fixed Internet Services

February 2, 2023

Esther Masese Waititu Appointed as Chief Financial Services Officer

February 1, 2023

June Chepkemei Appointed as KenInvest’s Acting Managing Director

February 1, 2023

CBK Expects Stable Foreign Exchange Market on Favorable External Deficit

February 1, 2023

Kenya Power to Raise KES 31 Billion from Proposed Tariffs

January 31, 2023
Load More
Next Post
DaraQDGWAAAfjZ0

Horticulture Sector Loses KSh8 Billion to COVID-19

Follow Us

  • 163.1k Followers
  • 3.6k Subscribers
  • 1.2k Followers

WhatsApp

Subscribe

Telegram  

Subscribe

Podcasts

Upcoming Events

There are no upcoming events.

View Calendar
Add
  • Add to Timely Calendar
  • Add to Google
  • Add to Outlook
  • Add to Apple Calendar
  • Add to other calendar
  • Export to XML

Featured

No Content Available

About Us

We are a leading integrated digital content platform providing in-depth business and financial news across Sub-Saharan Africa & the globe. Kenyanwallstreet.com is a property of Hisa Technologies Ltd, a financial media & software company.

Contact Us

Kenyan Wall Street
Email: [email protected]
Website: www.kenyanwallstreet.com

Disclaimer

The information contained in this website is for general information purposes only.
Read more..

  • About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud

Copyright 2021. Hisa Technologies. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Aviation
    • Banking
    • Energy
    • Infrastructure
    • Insurance
    • Investment
    • Manufacturing
    • Markets
    • Public Policy
    • Real Estate
    • Startups
    • Technology
  • Podcast
  • Videos
  • Events

Copyright 2021. Hisa Technologies. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In