Reports & Analyses

COVID-19 in Kenya – one year later

This month marks one year since the WHO declared COVID-19, a global pandemic. In a year, the virus has disrupted the world and Kenya, changed consumer habits, and remade entire sectors.

Since February 2020, Kasi Insight has tracked COVID-19’S impact on Africans by fielding more than 70 surveys comprising of 45 questions in 8 countries, gathering over 1 million responses on topics related to economic conditions, business, health, and finances.

Our year in review curates the data that has defined how the pandemic has altered African’s way of life in a very unique way and their views of their world.

BRANDS

Consumer confidence dropped to a historical low in March but has since recovered

Between February and March 2020, consumer sentiment dropped from +6 to -32. This was the largest drop in sentiment (down 38 points) ever recorded since we started tracking consumer confidence in 2016. Now in March 2021, sentiment has recovered and is back close to pre-COVID-19 levels. The index is hovering around 0. This indicates consumers are still cautious when it comes spending and brands must adapt to this new normal.

The disruption of consumer daily routine continues one year after

By April 2020, 81% of Kenyan had changed their lifestyle and daily routine because of the pandemic. 10 months later, 63% of Kenyans are still seeing their daily routine being disrupted. Unlike trends seen in the developed markets, stay at home and online shopping didn’t become the new norm, people just changed the way they shop offline. Brands should understand this new normal and what it means for their marketing, positioning and distribution.

In a digital world, traditional media like TV and radio took back the spotlight

The pandemic’s viral nature and global scope meant that information became critical in preventing and fighting the disease. When it came to what media Kenyans considered to be reliable, 40% felt TV was the most reliable source of information, followed by the Internet. TV and Radio are also the preferred channels for brands to communicate during the pandemic.

RETAIL

Kenya retail category momentum index captures monthly shifts in purchase intention for specific categories during the pandemic. The index is computed by taking the % of people purchasing more minus % of people purchasing less.

The massive category disruption started with Covid-19 and continues a year after

COVID-19 resulted in massive category shifts with new categories popping up under the essentials. As early as April, Kenyan consumers rushed to stockpile personal hygiene (+34), cleaning products (+25) in line with the global trend. Conversely, demand for Beauty products (-19), entertainment (-16) dropped significantly. Fast forward a year on, demand for discretionary items has recovered.

Alcohol beverages demand – Beer had the biggest shift in demand

Back in April 2020, out of the seven alcohol products we tracked, demand for alcohol beverage dropped. Beer lead the drop (-16) and Whiskey (-9) as the country was starting a lockdown and public gathering/partying were suspended. 10 months later, demand for alcohol beverages is back on positive territory with beer leading the way (+31).

Covid-19 accelerated demand for mobile money and negatively impacted day to day banking

Back in April 2020, out of the seven product we tracked, demand for financial products also shifted as a result of the pandemic. Mobile money surging (+52) while day to day banking dropped (-34). In April, lockdown and restrictions pushed consumers to prefer cashless transactions as much as possible to avoid infection. In November 2020, demand for mobile money has dropped significantly. However, it remains strong (+14) while day to day banking has recovered and leading ahead of mobile money (+27).

HEALTH

Vaccine perception is evolving

 In Kenya, 3 in 10 respondents said they will take the vaccine as soon as possible back in August 2020, the acceptance rate has improved 2% to reach 32% in December 2020. The return to normal is going to depend on vaccination and more work needs to be done to improve vaccine acceptance.

A second wave that is worse than the first

Back in March 2020, 16% of Kenyans said they knew personally someone diagnosed with having Covid-19. That percentage has since increased to 42% in December 2020. Kenya is going through a second wave that is more viral and deadly because of the new variants. Kenya has confirmed at least 113,236 cases and 1,913 deaths since the beginning of the pandemic.

Mental health challenges

Sadly, the pandemic has also increased various kinds of abuses. In fact, the 52% of Kenyans cite gender-based violence, child and drugs abuse, protests, and an increase in government corruption as issues they have witnessed over the past 6 months.

FINANCE

Concerns of COVID-19 impact on the economy

Back in February 2020, 50% of Kenyans were very concerned with the pandemic’s economic impact. The government has been active in managing the pandemic with various lockdowns and curfews, but the second wave seems to be hitting the country ever harder

Looking ahead staying well and healthy is the priority

Africans were hit financially first by COVID-19 as travel bans, supply chain disruptions and restrictions meant that people and businesses couldn’t operate. With a deadlier second wave, Africans are now looking at their health as a weapon against the virus. Almost 50% of Kenyans cite stay well and healthy as their priority over the next 3 to 6 months. One additional side effect of the pandemic is the toll on mental health, not surprisingly managing stress comes second when it comes to priority followed by making more money.

#Coronavirusafrica #COVID19 #Kenya #Cameroon #Nigeria #Ghana #IvoryCoast #Tanzania #SouthAfrica #Ethiopia #Egypt

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