Nairobi's economic output has been significantly affected by COVID-19 according to a UN-Habitat analysis on the economic and financial impacts of COVID-19 on major cities in Africa.

Most cities are projected to experience economic contraction which will impact tradable activities, particularly manufacturing and services.

The data shows that Johannesburg and Lagos, are expected to experience negative growth of -2.6 per cent and -5.9 per cent respectively.

Nairobi's economic output which is forms a significant portion of Kenya's GDP (20%), is expected to contract by 5% in 2020, from pre-Covid economic growth projections of 11.6 per cent to 6.6 per cent.

Dar-es-Salaam which was projected to have the highest growth of 14.8 per cent during the year will only reach 10.7 per cent according to the projections, while Kampala’s growth is also estimated to shrink from 7.6 per cent to 4.9 per cent.

Urban economic contraction will directly reduce municipal revenues which, in turn, lead to less financial resources to deliver urban services.

According to a sample survey of five slums in Nairobi on 22 April 2020, 81% of the residents already suffered a complete or partial loss of their jobs and incomes due to COVID-19.

About 65% of the capital's almost 3.2 million people live in informal settlements occupying less than 15% of the city’s total land area.