Working Capital Management in Times of Crisis in Kenya: Strategies for Resilience

Abstract

This study examines the role of working capital management in sustaining businesses, specifically during times of crisis like economic downturns or pandemics such as COVID-19. The study emphasizes the need for proactive strategies that can effectively manage uncertainties, preserve liquidity, and ensure business continuity despite disruptions in sales, supply chains, and credit risks. Drawing on a comprehensive literature review, the study highlights the importance of organizational resilience and proactive approaches to working capital management in addressing challenges during crises. Additionally, the paper thoroughly examines strategies including cash management, inventory management, and accounts receivable management, emphasizing the importance of thorough assessment, proactive planning, and strategic decision-making. In summary, the study underscores the importance of efficient working capital management as a key factor in enabling companies to successfully overcome crises and emerge stronger and more resilient.