• Kenya banned all public events in March after confirming its first case of coronavirus
Image: SOLOMON MUINGI
Over the years, weddings and social events have boomed over the Easter season across April and May. However, the coronavirus pandemic upended them this year.
The virus has had a profound impact on businesses that rely on weddings, events and other public gatherings.
Artisanal and small-scale mining have not been spared. Their industry has suffered massive losses.
“Jewelleries are for decorations. The ban on social gatherings has nullified the reason for buying them,” Kenya Chamber of Mines CEO Moses Njeru said.
Kenya banned all public events in March after confirming its first case of the coronavirus in a woman who had returned to the country from the US.
Njeru said the ban on weddings has trickled down to miners, who sell gemstones to jewellery-producing companies.
He said the quick spread of the coronavirus resulted in panic shopping, with many buyers spending more on food items and less on jewelries and other luxury items.
“When the end market is affected, the effect goes down to the producer. Nobody knew how long the pandemic would last, and therefore, fewer people bothered to buy gifts,” he said.
Most miners sell their minerals to middlemen, who later export to Thailand, India and Hong Kong for use in decorations. With most countries imposing lockdowns to stop the spread of the virus, production has been scaled down and mines closed.
Research has found that an estimated 800,000 Kenyans depend on artisanal and small-scale mining, contributing to 0.8 per cent the GDP.
The government projects to increase the mining sector’s contribution to 10 per cent of GDP by 2030 through value addition and the implementation of new policies.
However, Njeru downplayed the projection, terming it a dream. He urged the Ministry of Mining to fast-track the licensing process and protect investors from intruders if the growth is to be achieved.
“Kenya has a capability to produce more that 10 per cent. This can only be achieved if we listen to what the market wants,” he said.
Sylvester Masila, a gemstone dealer, said understaffing in the mines and less market intake has affected productivity.
“The restrictions make it difficult to travel to overseas, where we sell the precious stones. The prices have also gone down because there’s less demand,” he said.