Fresh produce exporters to European Union (EU) markets are counting gains as the stronger euro boosted their earnings after it hit record-highs against the shilling. The Kenyan Shilling has shed 30 per cent of its value against the euro in the past seven months — a move that has seen flower and fruit exporters gain extra 30% for every unit of produce they sell to the EU.
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This year’s Naivasha Horticultural Fair was held on 16th and 17th September at Naivasha Golf Club. The event which attracted more than 300 exhibitors is the largest exhibition of its kind in Africa and second largest in the world.
Exhibitors from all fronts of horticulture sector showcased their tools of trade and services to thousands of visitors who attended the two-day event.
Kenyan exporters are experiencing mixed fortunes from the weakening shilling as the exchange rates remain unpredictable. On one hand their exports are earning highly while trading with the major currencies, the US dollar and Euro. But on the other hand, the weak shilling has led to sharp increase in the price of raw materials which are mainly imported.
Players in the flower, tea and coffee sectors say there is nothing much to celebrate about the situation, particularly in the long term as their short term gains are eroded. “Indeed, with the loss in value of the shilling, exporters are getting more for each dollar they export. This translates to higher Kenya shillings earnings for exporters.