This year’s IFTEX trade fair theme was “Positioning Kenya’s Floriculture in the global market.” This theme was in line with The Kenya Vision 2030 development blue print which envisages the creation of a globally competitive and prosperous country with a high quality of life for all citizens by the year 2030. The Agriculture sector efforts are therefore anchored on increasing productivity, commercialization and competitiveness of agricultural commodities and enterprises. The floriculture industry is a good example of how this strategy is taking shape.
Speaking during the opening ceremony of IFTEX 2016, Dr. Richard Lesiyambe, Principal Secretary, State Department of Agriculture said, “I am happy to note IFTEX creates a platform and a conducive environment for over 200 exhibitors who include breeders, propagators, growers, exporters, suppliers and other flower industry related players and stakeholders both from Kenya and all over the world, who take time to discuss the development of trade in this important industry. Over 5,000 visitors visited the stands this year. These visitors came from the EU, Russia, USA, Middle and Far East and China, in addition to others from Rwanda, Ethiopia, Zambia, Zimbabwe, Uganda, South Africa and Tanzania. This forum is therefore an opportunity for the Kenyan floriculture sub sector players to contract business transactions, exchange information and share experiences that are beneficial to their businesses”.
The floriculture sub sector in Kenya is a major foreign exchange earner and employs over 500,000 people directly and more than 6 million people indirectly. The sub sector has also recorded the highest growth rate of between 10% and 20% annually over the last 15 years. In Africa, Kenya is the leading flower growers and exporters.
Indeed, in the year 2015, Kenya exported flowers worth 630 million USD as compared to 550 USD Million in the year 2014 which is about 69% of the total horticulture export earnings of over 910 Million USD in the same year. Statistics show that Kenya contributes to over 35 % of the world flower trade and competes with countries such as Ecuador, Colombia, and Ethiopia in the world flower business. The rose flower is the top Kenyan variety, leading in exports, followed by carnations, statice, alstroemeria, eryngiums, arabicums, cut foliage, chrysanthemums, solidago, and a range of summer flowers among others and the main export destination is the EU with a 36% market share of imports.
The major market for Kenyan flowers is Europe with new emerging markets in Japan, Middle East and Russia. It is gratifying that this sub sector is fully capable of supplying any flower buyer with quantity, quality and variety of flowers all year round. Stakeholders should continue putting more effort towards a sustained growth of the industry and continue engaging the Government in efforts to make flowers more competitive in the international market.
In recognition to the role played by this sub sector in the Kenyan economy, the government is undertaking a number of initiatives to develop the industry.
The government has establishment an Agriculture Development Fund that is envisaged to support the development of agriculture crops in general and horticulture crops in particular.
The government is continuously reviewing policies and regulatory framework to ensure a conducive environment for investors and facilitate further growth of the sub-sector and the flower industry in particular.
In recognition to the role played by institutions, the government will continue to facilitate the competitiveness of Kenya’s horticultural sector, and promote international, regional and local trade by continuing to strengthen the Horticultural Crops Directorate which is pivotal in International Market promotional activities, the Kenya Plant Health Inspectorate Service, whose services have been upgraded to ensure electronic licensing and improved laboratory facilities and services, the Pest Control Products Board, the Kenya Agricultural and Livestock Research Organisation and other relevant institutions to enable them play a greater role in improving standards and service provision in the subsector. To ensure that Horticulture subsector has a coordinated approach to issues affecting horticulture, especially with regard to market requirements and compliance, the Government has established the Horticulture Competent Authority Structure and National Traceability System in which the private sector institutions such as the Kenya Flower Council (KFC) and the Fresh Produce Exporters Association (FPEAK) are members.
The Government has continued to Zero rate VAT and give Duty exemptions for: irrigation, fertigation and water application related equipment, horticulture machinery for soil preparation, fertilizers, greenhouse materials, and equipment.
To reciprocate the initiatives being undertaken by Government, the private sector should engage more with both the National and County Governments under the public private partnerships (PPPs) initiative in creating innovative solutions that will go a long way in addressing challenges facing the sub-sector.