Nendo, a digital growth consultancy, has released a report on the Impact of COVID-19 on consumers and corporates in Kenya. The report covered sectors including Retail, Financial services and payments, Connectivity, Education, Entertainment, Food and supplies, mobility, communications, healthcare and Income generation.
In the financial services and payments sector, Mobile money transfer has increased aided by the Central Bank’s decision to lift the ceiling on mobile money balances. Safaricom’s M-PESA Commands 99.6 Percent of Value of Mobile Money Deposits. Online banking is also expected to see an increase in demand with NCBA Loop expected to have an edge over rivals in the short and medium-term due to its ground-up design integration with mobile money and user experience. VISA and Mastercard are also likely to see greater demand. However, the non-performing loan ratio for mobile lending apps is expected to rise while the apps see dampened growth.
Inter-county logistic companies such as Sendy, which connects an ecosystem of motorbikes, pickups, vans and lorries through a mobile app has become uniquely positioned. Such services, Nendo reports, are likely to see an increase in demand as Kenyans seek logistical solutions. Rural e-commerce startup Copia is likely to see additional demand up-country with the company’s peer to peer network of agents seen as a valuable resource in sourcing and delivery of goods. In a recent Interview, Copia CEO Tim Steel attests that they have indeed seen an increase in customer numbers and orders.
In the Education sector, there’s a likely increase in demand for e-learning platforms in the wake of schools closure. Longhorn publishers has waived all fees for its class 1 to form 4 curriculum. Providers of school supplies, school uniforms and book shops will suffer less demand despite that they can be bought online. Publishers are likely to adjust their business models in print to digital content.
E-commerce players such as Jumia, Kilimall and SkyGarden are experiencing greater demand. However, their supply chains may suffer to satisfy demand depending on how soon China and Asia rebound after COVID-19. Social selling such as Jumia’s J-Force may hit its peak with the demand for affiliate marketers rising. However, freelance platforms such as Upwork are likely to see fewer requests for work. Online pharmacies such as MyDawa are likely to experience increased demand for consultations.