Effects of Covid-19 on Export Trade in Kenya: the Case of Leather Industry in Kariokor Market

Abstract

Shocks emerging from infectious diseases such as the COVID-19 are not new phenomena. The emergence of COVID-19 resulted in the implementation of containment measures such as lockdowns, closure of borders, cessation of movement, and curfews by respective governments across the globe. Consequently, a global economic crisis brought about by the novel COVID-19 disrupted supply chains; affecting trade locally, regionally and internationally. This research project sought to investigate the effects of COVID-19 on export trade in the leather industry in Kariokor market, Kenya. The study established the process of leather product exportation, challenges presented by COVID-19 to the leather traders in relation to leather product exportation, and adaptation mechanisms adopted by leather traders as research objectives. The study employed a descriptive research design. Interviews were conducted among 58 respondents, drawn from a population of 210 leather enterprises. In addition, four key informants were interviewed to provide in-depth information. This study established that leather traders exported products directly to consumers, or through agents such as exporters; via road or air depending on the export market destination. Leather trade in Kariokor market is labor-intensive nature, being dominated by male and a few female traders. Leather traders consisted of employers, own-account workers and wage workers; majority having completed secondary education. Employment opportunities majorly targeted the youth who worked as wage workers, thus a majority of youthful traders. Following the COVID-19 outbreak, leather traders cited COVID-19 disruptions such as increased cost of raw materials, reduced working hours, job layoffs, low consumer demand, increased delivery timelines and reduced export earnings, disruptions which affected production and exportation of leather products. Therefore, 53.4 percent of the leather traders adopted online marketing through social media as part of their adaptation mechanism, as opposed to product diversification and market diversification due to no new export markets. Despite the COVID-19 disruptions on the exportation of leather products, Kariokor leather traders remained resilient, persistent, and perseverant in trade.