#01 Foreign Ground

Personal Finance & The Pandemic: Preamble

At the onset of the pandemic, I listened to an executive from the Institute of Economic Affairs – Kenya share his insights on the possible impact of the novel coronavirus. “People will begin to move upcountry…” he sort of promised. Upcountry? I went numb. What if I got laid off? What if I got sick? What if I… I begun to look for information – financial information – and at some point had a tad too much of it. I mean I was paying attention to every specialist, every analyst, every futurist. A few months into the pandemic, the truths that the IEA Executive had spoken about begun to unravel. I don’t know what has been your story this season but here are some accounts from Kenyans resident here and abroad.

Everything was fine until they cut our salaries by 30%. They, then, begun delaying transfers by 10 days, 20 days, 30 days, 60 days. Yes, 60 days! I had a loan and as soon as the funds hit my account, the bank took everything. Well almost everything… _{Musili, 30s, Compliance Expert}

I was around a doomsayer. “This thing is going to kill us. We are all going to perish. Hurry up! Pack up everything and move your family to ‘ushago’. And hurrying up I did! Bought a double dozen supply of pure cotton nappies because I thought we’d never again have access to diapers… _{Salama, 40s, SME Practitioner}

Never in a million years did I think that it was possible for an entire country to shut down. Kenya and all of its 47 counties came to a complete standstill. I was jobless and if it wasn’t for friends, I’m not sure how I would have survived the shock. I would have taken out a loan but banks hardly ever extend their facilities to the unemployed. _{Olamayian, 20s, Legal Intern}

If I knew that the coronavirus was coming, I would have closed shop, called it quits, chucked completely. Imagine taking a 33km bike trip to get supplies for customers who are also having cashflows issues. And at the very same time having to contend with a plague of rats hungrily waiting for the same ration. But it found me and fixed me in a corner. But it also freed my mind to thinking broadly and I’m now working on 4 streams of income… _{Wamaitha, 40s, Farmer}

The residents in our court tried to petition the landlord for a rent reduction. “I’ll deal with every case individually… As for you, you really can’t claim to have been affected kwa sababu serikali bado inawalipa!” Like all other Kenyans, the government gave us a tax relief in April 2020 but took it away at the very end of that year. Or rather adjusted it upwards from the start of 2021. _{Blessing, 40s, Doctor}

I can’t really say that the pandemic has put me in a tough financial space. Things have been pretty okay to be honest. _{Amani, 40s, IT Guru}

I thought there was going to be a bank run. I withdrew a significant stash to take us through the pandemic. The government stepped in a big way and gave residents a stipend equivalent to 75% of their monthly wage. We’ve also had access to loans at a 2.5% interest per annum to take us through the COVID furlough.. _{Joe, 40s, Architect by day, Business Analyst by night}

Things have been tough but they’ve also been manageable. Tough in the sense that as a stock trader I have had to settle for lower returns due to a distressed capital market. Manageable as I’m still growing my portfolio and hopefully this will translate into greater dividends and decent gains when the bourse eventually bounces back. _{Sunday, 40s, Investment Analyst}

I was in a tough financial space even before the pandemic. Although I had an income, it wasn’t enough to cater for all my expenses. When COVID hit, I saw myself getting into a deeper mess. I decided to radically cut back on my expenditure and save every possible shilling. _{Zaire, 30s, Economist}

I can’t quite say that COVID iliniaffect financially but it hit different. My mum got a significant pay cut and as much as she tried to shield us from her woes, we somewhat felt the impact. _{Kevo, 20, Aspiring Mechanical Engineer}

Some people have flourished in this season while others have floundered about. I’m grateful to be among those who have flourished. Saving most of what my parents back in Cameroon have sent in the past 4 years for schooling enabled me to setup a home furnishings store in December 2020. Business is good, life is good and I’m seriously considering settling here. _{Seydou, 30s, Finance Student majoring in Digital IT & Entrepreneurship}

It’s been a tough season financially and emotionally with all the loss around. And though my wife’s pay was reduced, we have continued to support those who are sick or grieving. The good news, though, is that my wife recently got promoted and received full compensation for the COVID cut. _{Muriithi, 40s, Wealth Advisor}

Even with a 10% pay cut, I haven’t felt the negative economic impact of COVID19 as I have been deliberate in keeping my expenses low over the years. The thing is this, my parents aren’t nearby and I’ve always been cognizant of the need to have a strong safety net. My husband recently fell ill and is currently not on a salary. And while we continue to keep things low, we are committed to living fairly decent lives. _{Victoria, 40s, Governance Risk & Compliance Specialist}

Things have been good through and through. _{Kigen, 30s, Data Specialist}

My job wasn’t affected and despite the challenges of the season, the clients we serve (investment managers for high net worth investors and individuals) ended up doing extremely well. We’ve also benefited from the government’s economic response plan; grants meant to cushion citizens and their businesses from COVID related hardships. _{Sophia, 40s, Due Diligence Analyst}

I’m financially savvy. Cautious with money. Always knowing you can have it and then lose it all. I budget to the tee. I’m big on savings (a discipline inculcated by my parents) and was able to meet my rent, fuel my car and survive without a job during the pandemic. My secret: a sinking fund that I have had since 2014 where I set aside money to cater for all my expenditure for the succeeding year. Yes my 2022 costs are fully covered! _{Jasmine, 30s, Policy & Advocacy Specialist}

I got COVID. Later got the vaccine but soon after had to go in for an emergency surgery. I’ve suddenly become sickly. Not sure if the virus weakened my immune system but it’s been rough. I’m having to pay for all these bills out of pocket. If I knew my employer was going to take this long to confirm my position, I’d have taken up a medical cover. _{Regina, 30s, Graphics Designer}

The government really stepped in to cushion businesses in the affected industries. At federal level, distressed companies were eligible for a loan of at least US$ 100,000 at 1% annual interest rate. At state level, a rent relief of US$ 25,000 was available to business persons; no one was to suffer eviction. Banks were also required to give forbearance to mortgagees who applied for it; 12 months is the period they’ve enjoyed so far. _{Austin, 50 this year, Vice President – Internal Audit}

I’d been out of work for some time but got two assignments at the very start of the pandemic. What more can I say other than God has been very gracious. He has provided for me amidst scarcity. All has been well. _{Emmanuela, 40s, Development Specialist}

I have been in the oil industry a long time but what was seen has never been witnessed before. Oil prices plummeted from an average of $65 a barrel to below $1 a barrel. Eventually the prices turned negative as the demand dried up due to lockdowns. Our company was hard hit. We were collateral damage. Savings saved the very long days. _{Israel, 50s, Finance & Commercial Executive}

I left the country to seek greener pastures and after months of waiting, I finally got a job. Day 2 and the government announces a hard lockdown. “No one is permitted to leave their residences except under strict and controlled circumstances which is one – to buy food, two – to purchase supplies, and three – to seek medical attention.” I am someone who easily make contacts but imagine trying to network in a socially distanced world. I WAS STUCK AND IN FOREIGN GROUND. _{Nyamari, 30s, Techpreneur}

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Do you identify with any of these narratives? Yes? No? Comments? Feel free to leave a message in the comment section and / or share this article with a friend. More importantly, I hope you’ve gotten the gist of this 26-part journey. A brief description of the project is detailed in the ABOUT section of the blog. Have a wonderful weekend and see you next Friday 🌻 🌻 🌻