Rising fuel prices, wages could squeeze earnings

Farmers in the hub of Kenya’s thriving flower industry fear the rise in fuel prices in east Africa’s biggest economy could harm one of the country’s top exchange earners by raising flight and other input charges.

Flower farmers are also concerned that the cost of production, which has spiked already, could soar further if unions win their quest for higher wages for workers.

A grower in a leading flower farm in the country whose roses are sold in flower shops in Europe, said flight charges were up by 50 percent compared with the same period last year, which is considered a low season.

“During the low season, between May 16 and September 14, flight charges come down significantly. This has not happened this year, and compared to last year, the flight charges have gone up by 50 percent due to the rise in oil prices globally,” he added

Kenya’s fuel prices have risen due to higher international oil prices, piling pressure on inflation. On other imported inputs,he said the prices had risen by 10 percent compared to last year.

“Three-quarters of the flower farms are making very small profits,” he said.