50% of Kenyan Businesses Have Managed Well Amid Covid-19 Effects

A new survey conducted by global software provider SYSPRO Africa shows that 50 percent of Kenyan businesses have managed well in 2021.

The report covered the period between September and November 2021 across a range of global manufacturing and distribution businesses.

Of the surveyed businesses, 7 percent had already recovered while another 8 percent projected full recovery in the fourth quarter of 2021. A further 25 percent of the businesses have been thriving well with only 16 percent barely surviving.

The Head of Customer and Ecosystem Enablement at SYSPRO Africa Doug Hunter noted that since the onset of the Covid-19 pandemic, many businesses have diversified and adapted the technology to keep up with the changing global market policies.

“While we have seen an expedited global move towards diversification particularly in digital transformation in the manufacturing and distribution sector, Kenya’s uptake has been much slower. The mentality however remains the same: Innovation is essential,” said Hunter.

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Many businesses (51 percent) noted that they did not get any support from the government in the past eighteen months. Consequently, 38 percent of these entities stated that they benefitted from the tax deductions.

Some (13 percent) said they got support from the government while 5 percent reported they had gained business experience and skills from various free online courses.

While the pandemic pushed several businesses to the wall, it also enabled others to upscale their digital technology including hybrid work strategies. This was evidenced by the 30 percent who reported increased return of investment

“It is not how much you spend that matters; it is how you spend it. User experiences can also influence how technology is used and eventually affect the return on investment,” reads part of the report.

With the momentum displayed by Kenya’s international peers, the onus is fast becoming one of digital renovation. The world is moving into a digital space so companies must ready themselves for this new era of online agility.

At the same time, the businesses have projected a 23 percent recovery in the first half and 20 percent in the second half of 2022.