Title:
INFLUENCE OF COVID-19 ON PERFORMANCE OF SMALL AND MICRO ENTERPRISES IN KENYA: A CASE OF KENYA WOMEN FINANCE TRUST IN GARISSA TOWNSHIP SUB COUNTY, KENYA

Authors:
Tom Ongesa Nyamboga*, Hussein Abdi Ali, Kenya

Abstract:

Kenya’s Small and Micro Enterprises (SMEs) sector has been hit hard by Covid-19 pandemic. Covid-19 is now not only a health crisis but an economic risk that has disrupted billions of lives and endangered global economy. The pandemic has led to economic devastation of SMEs globally, Kenya included. The study’s objective was to assess economic impact of Covid 19 on performance of SMEs in Garissa Township Sub County. A mixed research design was adopted for this study embracing both quantitative and qualitative data. The study used a descriptive research design. The study’s target population was composed of women SMEs funded by Kenya Women Finance Trust (KWFT). A census method was adopted to collect data from all group leaders of 20 SMEs funded by the Microfinance Institution in the region. Primary data was collected by researcher administered questionnaires. The collected data was sorted out and coded according to the research objectives. The study utilized both descriptive and inferential statistics to analyze data, by the aid of SPSS version 24 computer software. ANOVA and Regression analysis were computed to find out the relationship between research variables. The study’s findings established that shortages of business stock had a positive relationship with performance of SMEs while other variables under this study had no significant relationship with performance of SMEs. The findings of this study will be very significant to policy makers and relevant actors in taking measures that would steer SMEs towards sustainable trajectories. The study recommends SMEs to be assisted by extending liquidity to Micro Finance Institutions and work with them to increase availability of credit to SMEs.