Top 10 Events That Shaped Kenya’s Economic Activities In 2020

By Juma / Published January 5, 2021 | 8:00 am




The year 2020 goes down in the annals of history as one that redefined the world. It is the year that a pandemic hit the world, getting the whole world unaware while sweeping almost everything along the way. Will the world ever be the same again after 2020?

Here are 10 events that shaped Kenya’s economic activities in 2020:

Covid-19

This was the mother of all problems in 2020. The young people would call it the Bazuu. With its origin in Wuhan, China, the virus spread like bushfire around the world, infecting and killing people en masse. Currently, the United States is leading in terms of infections.

In Kenya, the virus was more of an economic problem than a health crisis as you will see. People were actually more worried about their income than contracting the virus. The virus changed the face of Kenya forever, for the first time, demolishing the illusional middle-class.

READ: 32.0% Of Kenyans More Likely To Move From Their Current Homes Due To Covid-19

Curfew

On Sunday, Kenyans were up in arms when President Uhuru Kenyatta decided to extend the curfew by 90 more days to March 2021. The curfew has been running since March 2020, kicking off from 10 pm to 4 am. Initially, it started at 9 pm to 5 am.

Curfew was a new thing for most Kenyans. According to the majority of Kenyans, the curfew has done more harm than good. It has hindered the movement of people and goods at night and it has hit hard on businesses such as bars and clubs.

READ: Co-curricular Activities In Schools Banned, Curfew Extended To March

Tax Cuts

President Uhuru Kenyatta announced tax relief with the aim of cushioning Kenyans against the heat from the Covid-19 pandemic. Although many Kenyans feel the tax cuts had little effect on their income, businesses feel it was worth it.

During the year, the Value Added Tax (VAT) was reduced from 16 percent to 14 percent. Income Tax was reduced from 30 percent to 25 percent. Kenyans earning 24,000 and below were exempted from paying taxes, (PAYE).

READ: Uhuru To Kenya: VAT To Remain At 14%, Curfew Extended By 60 Days

Massive Job Losses

The year 2020 was the year that a record number of Kenyans lost their jobs.  As businesses failed to remain afloat because of the pandemic, they opted to lay off their workforce. People lost their jobs en masse and the trend might continue to year.

Stats from the Kenya National Bureau of Statistics (KNBS) showed that at least two million Kenyans (2,000,000) lost their jobs between the month of March 2020 and October 2020. According to the World Bank, at least 1.8 million Kenyans went into poverty.

READ: COVID-19 Has Pushed Millions Of Kenyans Into Poverty

Building Bridges Initiative (BBI)

The Building Bridges Initiative (BBI) is one of the political events that hit Kenya in 2020. The proponents of the document that is said to have taken at least 10 billion shillings to prepare, believe that it is the solution to all problems facing the country.

BBI proposes a change on the Kenyan Constitution, including more positions in Parliament including the position of the Prime Minister. In 2020, talk about the document divided the country into political factions; those for and those against.

School closure

MAGOHA

In 2020, President Uhuru Kenyatta ordered the closure of all learning institutions to cut down on the spread of Covid-19 among learners. The closure saw parents stay at home with their children for nine months melting a whole academic year.

During the closure of schools, at least 300 private schools shut down permanently leaving about 56,000 learners with no school to go to. The pandemic forced a change in the school calendar where learners will sit their national examinations in March.

KRA Revenue Shortfall

In 2020, the Kenya Revenue Authority (KRA) fell short of revenue collection by 125 billion shillings. This hit hard on the spending of the government with civil servants having their salaries delayed. At some point, the Treasury Admitted that Kenya was broke.

The shortfall in revenue meant that the country had to borrow to sustain its operations. Currently, the country is seeking to borrow at least 400 billion shillings from both the World Bank and the International Monetary Fund (IMF).

Churches and Funerals

pastors covid

For the first time, churches in Kenya shut countrywide and people were advised to stay at home. Due to the curfew, night church meetings (keshas) that played loud music were stopped. Later, people were allowed to worship but with strict following of Covid-19 protocols.

Funerals changed. At the advent of Covid-19, families were required to bury their loved ones within 24 hours. The number of people at a funeral was limited to 15 people. The number was later revised to 150.

Mask

Face masks coronavirus

This might seem like a small thing but a mask defined Kenya. All over a sudden everyone was required to wear a mask to stop the spread of Covid-19. The price of masks was high at first. The cheapest was going for 5o shillings while the highest from 1,200 shillings.





About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

View other posts by Juma


More Articles From This Author






Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (154)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (237)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950