Lessons from Kenya: Response to COVID-19 Crisis

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Kenya’s response to the global pandemic is a blueprint for African leaders. Kenya has created new jobs, manufacturing companies, and is positioning itself to become a regional hub for providing essential health materials to Africa. 

As we move into a world structure where digital technology will disrupt business processes, work culture, talent recruitment, and roles, the government's strategic direction, and response during the COVID-19 crisis will affect future economic growth. The Kenyan government is thinking in the right direction.


Kenya is fast becoming a regional hub for PPE production and within three-months created seven (7) factories focused on manufacturing PPE materials. Kenya's current production valued at $14 million has employed thousands of people and added over 3,700 new employees to their workforce recently. 

 

The Kenyan government is making access to health facilities locally available by building regional health centers in 47 counties. The Kenya Medical Research Institute (KEMRI) is manufacturing Covid-19 rapid testing kits to aid state assessment facilities. The private sector raised funds to pay health care workers while the government focuses on patients of COVID-19. 

 

The president and his deputy have taken an 80% salary cut and provided tax cuts for VAT (16% to 14%); income tax and corporation tax (30% to 25%); and given a 100% tax relief for individuals with a monthly income of less than $225.

 

The Kenya Association of Manufacturers launched a digital directory for locally manufactured goods to help customers shop online. MSMEs can use the portal to directly contact local suppliers to source raw materials with payment possible via cashless platforms.

 

Bringing this back home:

At an early age, I watched my mother become her government. She created boreholes in our house so we could have water. She bought power generating sets so we could have electricity. Residents of our estate fixed the road so we could save our cars from the constant jams in potholes for over two decades. Despite taking the responsibility of the government, citizens pay taxes and levies such as the recent Stamp Duties on rent. NIPOST has also suddenly resurrected to request a stake in logistics businesses that it had no influence building or organizing. 

 

The time for adding taxes and levies is not during a crisis. While the world is changing, there is a vacuum Africa can fill. With the current problems between China and the West, can our government focus on creating systems to become the next manufacturing hub? Should we be thinking like Ethiopia (https://www.weforum.org/agenda/2018/05/ethiopia-africa-fastest-growing-economy/) and become a hub for manufacturing at low cost? We have an opportunity to create new structures and reinvent the future.


There is no problem with creating avenues to make more money, but we should create sustainable wealth rather than increasing taxes at every opportunity.


The universe is crying out that we should stop and re-think.

 

Sources:


https://atalayar.com/en/content/innovative-industry-aids-kenya%E2%80%99s-covid-19-response

https://www.health.go.ke/government-starts-manufacturing-mask-and-ppe-to-prevent-coronavirus-nairobi-friday-april-3-2020/

https://www.weforum.org/agenda/2018/05/ethiopia-africa-fastest-growing-economy/



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