Pandemic had a mixed impact on the manufacturing sector

 7.6 per cent to Kenya’s GDP, as a result of a 0.1 per cent contraction amid the pandemic, after a growth of 2.9 per cent in 2019. Nevertheless, the industry’s value of output in 2020 increased by 2.8 per cent to Sh2.4 trillion, with intermediate consumption reaching Sh1.6 trillion as a result of a 3.6 per cent increase last year.

It comes as no surprise that the pharmaceutical products saw a sharp expansion of 5 per cent, from 1.6 per cent in the previous year, as the pandemic broaden the public’s reliance on health facilities and products in the country on account of COVID-19. In its report, the KNBS said the production of tablets increased by 8.2 per cent, while capsules and syrups also reported an expansion of 1.2 and 1.1 per cent respectively,

Meanwhile, a host of industries did take a hit during the pandemic, with operations in sectors such as beverages, motor vehicles, leather and rubber being disrupted, causing huge job cuts and low production. For instance, reduced production of malt, spirits and soft drinks resulted in a 13.4 per cent contraction in the beverages and tobacco sub-sector, from a growth of 6.1 per cent in 2019. The report noted that these factors had an adverse impact on employment and credit to the manufacturing sector, with credit to the industry by financial institutions declining to Sh1.1 billion in 2020, from Sh1.7 billion in the previous year.