Bailout will save manufactures from virus shocks

On May 27, the US hit the grim milestone of more than 100,000 Covid-19 deaths. On this same day, Kenya also reached its own grim milestone of 123 new Covid-19 cases in a single day. These two tragic occurrences show that Covid-19 will be like a prolonged drought stretching into many months, and not like an intense hurricane that lasts for a few days or weeks. This drought of a pandemic is killing lives, economies, dreams, businesses and jobs.

KPMG and Kenya Association of Manufacturers recently conducted a joint survey on the impact of Covid-19 on Kenya’s manufacturing sector. The survey unearthed some staggering results. Before the virus, the biggest priorities of local manufacturers were to increase revenue, domestic market share and profitability. Now, after the ravages of this pandemic, the biggest priorities of manufacturers are reducing costs, retaining jobs and improving cash flow.