Listen to This Article Enhance your reading experience by listening to this article.

The private sector has warned Kenyans are starring at possible inflation riding on coronavirus as markets grapple with a supply shortfall worth Sh366 billion ($3.66 billion) as lockdown in China starts to bite.

In report released last Friday on the impact of the coronavirus -Business perspectives on the impact of coronavirus on Kenya’s economy, Kenya Private Sector Alliance (KEPSA) warned of shutdowns, job cuts and increase in loan default rates if the situation persists.

China accounts for about 21 per cent of Kenya’s imports, “meaning Sh366 billion ($3.66 billion) worth of products may need to be sourced elsewhere or substituted by local production due to the Covid-19 disruptions.”

Global disruptions

KEPSA said major segments of the international markets have reduced production two months after the outbreak of Coviud-19.

The report confirmed sectors affected by the effects of the Covid-19 include manufacturing, finance and insurance, construction, tourism, agriculture, forestry and fishing, wholesale and retail, health and professional services sector

“The country also faces reduced imports of crucial products including consumer and industrial products, motor vehicles, machinery, electronic equipment, appliances and accessories,” read the status report in part.