SUMMARY OF THE IMPACT OF COVID-19 ON DUKAS

In addition to threatening public health, the effect of Covid-19 on businesses and the economy is substantial. The pandemic has brought with it unforeseen variables that Dukas were not prepared to handle. Dukas are small retail shops, and they supply about 80% of consumer goods playing a very important role in Kenya's economy.

Immediately after Covid-19 hit, things were messy for Dukas. The following are some things that happened;

1. Soon after the government announced a lock-down of the Nairobi Metropolitan area, prices of Fast-Moving Consumer Goods (FMCGs) shot up. This hike in prices was followed by a shortage of some of FMCGs such as sugar.  

2. About 25% of shopkeepers I was interacting with closed down due to a shortage of operating funds. 

3. Suppliers who were selling Dukas commodities on credit before the pandemic adopted a no credit policy. 

4. Shops operating around learning institutions and hostels were closed temporarily while the ones who continued opening their doors reported a 60% reduction in daily sales.

5. Dukas in slums who attempted to put in place preventive measures as advised by the Ministry of Health had it rough too. Shop keepers who tried to implement guidelines such as social distancing and wearing of masks, lost customers. The customers saw the shopkeepers as being full of themselves and moved to other shops.

6. However, something POSITIVE happened. Some shopkeepers in Thika came up with an ingenious way to make an extra coin. Shop keepers with MPESAs have commercialized Fuliza. They charge a customer the Fuliza interest rate plus a fee of Ksh. 50 for using MPESA attendant's phone to Fuliza.

We do not know how long the economic impacts will be felt, but surviving Dukas are quickly adopting which is good news to Kenya's economy.