Freight, the taxation regime, and the EU plant health regulation were predicted to be the biggest challenges for the Kenyan floriculture in 2021, according to Kenya Flower Council’s (KFC) CEO Clement Tulezi. “When I was predicting that earlier in the year, I was not wrong. These three have remained the major challenges, and not much has changed since, unfortunately.” In this article, Tulezi goes over the current state of these challenges, as well as a new challenge the Kenyan flower industry is having to deal with and how Tulezi’s association is helping to find solutions and improvements.
20-25% of daily harvest thrown away
According to Tulezi, their top priority at the moment is freight. “In 2020, we temporarily lost demand for our industry, and the airlines found better business elsewhere because of Covid. As a result, the freight costs have gone up, and this situation has persisted. We are still short on capacity. There are still many cancellations. Almost every two days a flight to Nairobi is canceled, meaning that the capacity has not improved. The sector falls short of 1500 tons per week. As a result, the majority of growers and exporters are throwing away 20-25% of their daily harvest. Meanwhile, the demand for Kenyan flowers is good. These growers have invested a lot into their production, for which there is actually enough demand, but there is no space to transport it.”
In addition, the costs of transporting the Kenyan flowers have remained very high. “Moving produce from Nairobi costs on average $2,60 per kilo, whereas this only costs $1.50 for the Ethiopian market. When all other factors are held constant, how can the Kenyan market compete in the same market?”