COVID 19 CONTAINMENT MEASURES AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NAIROBI CBD, KENYA
COVID 19 CONTAINMENT MEASURES AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NAIROBI CBD, KENYA
Jacob Abere Moochi - Master of Finance Student, Kenyatta University, Kenya
Dr. Vincent Shiundu Mutswenje - Lecturer, Kenyatta University, Kenya
ABSTRACT
SMEs are key economic drivers in both developing and developed economies. However, despite this significance, these businesses face a myriad of challenges that affect their financial performance. Among the most recent challenges is COVID 19. As a means of curbing the virus from spreading, the government put in place various containment measures, that is lock down, social distancing and curfews. This study hypothesizes that that these measures impacted on the financial of these businesses. In this study therefore, the purpose was to determine how COVID 19 containment measures have affected the small and medium enterprises in Nairobi CBD. More specifically, the study sought; to determine the effect of lock, curfew and social distancing on the SMEs in Nairobi. The study targeted 5000 SMEs that are licensed by Nairobi Metropolitan Services to operate within Nairobi CBD. The sample size comprised of 370 SMEs. The participants were selected using stratified sampling. The businesses to partake in the study were picked through simple random sampling. Data collection was done using a questionnaire. SPSS was used to analyse data. Descriptive methods were used to describe the respondents and the various perspectives of the respondents regarding COVID 19 containment measures and the associated effects on financial performance. This was done using percentages and frequencies. Inferential analysis was used to determine the association between the predictor variables and the outcome variables. Based on the findings, the study found that lock down highly disrupted the SMEs sourcing and distribution functions. It was difficult for SMEs to sources raw material and supplies from other counties and also, it was difficult for the businesses to distribution their goods to other counties. The study also found out that the SMEs were affected by curfew. Further, the study identified that social distancing affected the businesses by limiting the number of customers that could be served at a time.
