As the year 2020 snails to an end, it has surely been a turbulent year. Millions of Kenyans have lost jobs with the World Bank saying at least 2 million of them were pushed into poverty. Companies have shut down and the majority have reduced operations.
This year alone, at least 14 listed companies have issued a profit warning, painting a picture of just how the year has been on businesses around the country. Although there are hopes of a vaccine, the year 2021 is still not a sure bet for investors in Kenya.
Below is a list of companies that have told their investors to expect a drop in their annual profits:
Absa Bank Kenya
East African Breweries Limited
Kenya Power and Lighting Company
East African Cables
Nairobi Business Ventures
Nation Media Group
TPS Eastern Africa
Standard Chartered Bank Kenya among others.
This year has been unfavorable for the hospitality industry. According to the report done by the Central Bank of Kenya, the bed occupancy at the majority of hotels in Kenya stood at 24 percent. The number of visitors coming to Kenya dropped by over 83 percent.
So many hotels have either shut down, laid-off employees, or opted to widen the net of their business by going into the restaurant business such as the Sarova Hotels.
The banking sector has also been hard hit. During the month of March, the Central Bank of Kenya directed that all commercial bank restructure their loans to cushion customers against the effects of Covid-19. This has health a heavy blow on banks.