Business Recovery @ KEPSA

 

Business Recovery @KEPSA

The current KEPSA data on business performance indicates an interesting trend that is still very much tied to the woes of the COVID-19 pandemic. The report that 51 % of businesses are operating at less than 50% levels is very similar to the concept of Radioactive material “half-life” in physics. To give this a business interpretation, it has taken seven months for half the companies to recover 50% of their operations. It should therefore take another seven months for 50% of the remaining companies to arrive at 50% operations. Following this logic, it should take another 14 months for 80% of the companies to recover 50% of their operations. That is assuming there are no major shocks in the economic environment. However, that timeline is just past the planned BBI referendum and into the 2022 General elections.  

While I am not surprised by the 12% that have yet to open, I am more intrigued by the 7% that are doing better business than before the pandemic. While it is indeed possible that COVID-19 posted a boom for them and that they are in the internet, online or service sector businesses, I am more inclined to believe that they have taken advantage of the environment the pandemic has facilitated and become more efficient and focused in their business development strategies by rationalizing their need for idle infrastructure, bloated staffing, offloading prestige oriented capital investments and redefining productivity by shedding fat and ensuring that production remains lean and fit!

Allan Bukusi

Reference: Business Daily