Economic Impacts of Covid-19 in Kenya: An Assessment of Hospitality and Lodging Sectors in Tranzoia and Nandi Counties

Abstract

The hospitality industry is one of the most vital economies to Kenya. However, the rapidly evolving global Covid-19 epidemic has challenged this sensitive industry with unforeseen circumstances. Therefore, the objective of this study was to assess economic impacts of Covid-19 on hospitality and lodging sector in Tranzoia and Nandi Counties. The study was guided by the critical theory and the critical political economy theory. A descriptive survey design was employed. This study targeted 30 restaurants and 30 lodgings from Nandi and Tranzoia Counties. Stratified sampling and simple random sampling techniques were used to select a sample of 15 restaurants from each County. Questionnaires were the main data collection instruments in the study. Collected data was coded into Statistical Package for Social Sciences (SPSS) version 20.0 and analysed descriptively. ANOVA and T-test was used to determine for significant difference (p˂0.05) between or among the groups. Results indicated that there was a sharp decline in the number of employees during the Covid-19 pandemic in both the restaurant and lodging sectors. Employee’s dismissal was the most resorted measure to reduce restaurant and lodging operational cost. Both sectors did not follow the Covid-19 protocols strictly and most of their employees were not trained on how to handle potential cases of Covid-19. There was a significance different between lodging business monthly income before and during Covid-19 crisis in Nandi and Tranzoia counties. Results further revealed there was a drastic drop in the lodging occupancy rate and this was attributed to severe Covid-19 containment measures put in place by the Kenyan government. However, the occupancy rate improved in 2021 after lifting major containments measures. Finally, in both sectors guest health safety measures, adaptability, leaderships and finally use of technology to minimize human to human interactions are key learning areas from Covid-19 pandemic. Employees should be trained on the importance of properly following Covid-19 Containment procedures, and the national govt should reduce taxes, provide grants and loans to help businesses recover from the pandemic.