Ten Kenyan businesses likely to benefit from outbreak

Reports about the consumerist boom brought on by the novel coronavirus abound. Yes, people are stocking up on products such as hand sanitisers, face masks, dry foods and household disinfectants, but Covid-19—which has infected more than 100,000 people worldwide and poses a threat to human lives, especially in cities where outbreaks are rampant—could, despite appearances, be really bad for business. Herein is a list of some local businesses likely to benefit from the outbreak 

Disinfectant manufacturers

Since the confirmation of the first case of coronavirus in Kenya, disinfectants and hand sanitisers have been flying off the shelf.

A spot check in most supermarkets in Nairobi showed that all supermarkets had run out of hand sanitisers.

Globally, consumer demand for hand sanitisers has grown by 1,400 per cent between December and January.

Dry foods suppliers

Sales of dried beans, canned meat and powdered milk are on the rise across the globe following the coronavirus spread.

Researchers say these items are always on demand during crises because they are non-perishables and people can feed on them for months on end.

Thus suppliers, distributors and retailers in the food chain are making a kill out of buyers. Kenyans are already rushing to stock up on dry cereals and flours.

Face mask makers

Public health officials are warning that restrictive trade measures tied to medical supplies could worsen the shortfall and risk making poorer nations more vulnerable to the coronavirus’ spread.

Masks are flying off the shelves in Kenya with suppliers making a handsome profit in the process.

Pharmaceutical sector

The cost of over-the-counter pain relief medication has jumped across the world as drug-makers demand price increases on the back of raw material shortages triggered by the coronavirus outbreak.

Following the announcement of the first case of coronavirus in Kenya on Friday and two on Sunday, pain killers will be in high demand thereby lining the pockets of pharmaceutical players. 

e-Commerce boom

As more and more people prefer to work in the comfort of their homes and as people heed the advice not to congregate in overpopulated places such as malls and supermarkets, online shopping is likely to spike as it it limits human contact.

This will, however, test the effectiveness of delivery services and the capacity of online shops to satisfy a diverse market.

Industry

With oil prices tumbling due to slumping demand from China, which consumes more than 25 per cent of the world’s oil production, prices of petrol are likely to come down further much to the benefit of motorists, transporters and certain industries.

Forex bureaus

With demand for the dollar reducing heavily, some countries, especially in the developing world including Kenya, are seeing their currency strengthening in the short term.

One unfolding real-time effect is a US dollar shortage that’s already manifesting on parallel forex markets with the informal dollar dealers.

Kenya has recently benefited immensely from the tumbling dollar while Nigeria and South Africa are also seeing their currencies bolden in the midst of coronavirus escalation.

Stock markets

The stock market lost Sh120 billion in paper cash on Friday after the first coronavirus case was reported in Kenya.

However, certain players will leap big from the outbreak. There seems to be selling of stocks en masse before the market stabilises and this gives an opportunity for traders to make good money.

Independent traders and brokers are seeing this as an opportune moment to shelve off some stocks at favourable prices. Demand and appetite for treasury bills has also gone up.

Telecoms sector

As people seek updates on the spread of the virus, the telecommunications sector is likely to see a spike in sales of airtime and data bundles.

Whenever a crisis ensues, most people want to keep in touch with their loved ones to monitor vulnerability to scourges.

Mobile service providers will see revenue from SMS, talk-time and data bundles rise as more and more people seek to connect virtually instead of physically. 

Transport

Following a directive by President Uhuru Kenyatta on Sunday for all schools to close after the number of those infected with the outbreak rose to three, transporters are likely to see a spike in travel as children in boarding schools make their way home, thus making good money in the short term.

As people move to protect themselves from the outbreak, travel to rural areas is also likely to spike.

E-commerce channels will also depend on transporters to deliver essentials to customers as more people avoid malls and supermarkets. 

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