CHINA'S CORONAVIRUS AFFECTS THE COST OF IMPORTS

The effect of the Coronavirus which up to date has claimed more than 3000 lives is being faced by the manufacturing and health sector all over the world. Most developing and middle-income countries such as Kenya often depend on China for material inputs. This has seen the cost of products that come from China double in price over the two months. The global pandemic has led to travel restrictions by countries all over the world. 

The effect of the deadly virus on the country's economy is likely to worsen following the decision by Kenya's leading airline, Kenya Airways to halt all its planes leading to china due to low numbers of passengers. The Virus which is said to have originated from china's industrial city Wuhan has spread to over 50 fifty countries. 

Firms have faced a shortage of imports and this has been affecting their productivity as the alternative sources of the raw materials from other countries are overwhelmingly expensive. There is a scare for a global economic recession if the virus will spread into the next quarter of 2020 and extend into other geographies. 

Small scale import traders in Nairobi Kenya have complained over the increase in the shipping cost of commodities from China. Some of them have opted to stay out of business until the Virus is contained.