Strong shilling and Red Sea crisis blamed for Q1 2025 decline
Kenya’s horticulture sector recorded a dip in export earnings in the first quarter of 2025, despite an increase in the volume of produce shipped abroad. Data from the Central Bank of Kenya (CBK) shows the country earned 40 billion shillings (about 309.4 million U.S. dollars) between January and March, an 11.2 percent fall from the 349 million dollars registered during the same period in 2024.
The performance marks a continued slide for one of Kenya’s top foreign exchange earners. In 2024, horticulture exports brought in 1.06 billion dollars, down from 1.21 billion the previous year.
Interestingly, the volume of horticultural produce exported grew in the quarter, rising to 216,429 tonnes from 206,714 tonnes recorded in Q1 2024. The growth in quantity, however, was not enough to offset the drop in revenue, with a stronger Kenyan shilling and logistical hurdles in key trade routes weighing down earnings.
According to Principal Secretary for Agriculture Paul Kipronoh Ronoh, the appreciation of the shilling made Kenyan exports less competitive in the global market. “Change of export routes also has not only lengthened transit times for those highly perishable products but also increased airfreight costs,” he said.
The disruption in the Red Sea, a critical shipping lane for Kenyan produce heading to Europe and Asia, has forced exporters to seek alternative, longer routes. This has raised costs and exposed the sector’s vulnerability to global maritime instability.
Kenya’s top horticultural exports; cut flowers, vegetables and fruits continue to find strong demand in Europe, with the Netherlands and the United Kingdom being the main markets. In Asia, exports are largely destined for China, India, and Kazakhstan.
While exporters navigate volatile currency conditions and shifting logistics, industry stakeholders are calling for greater policy support and investment in supply chain resilience to cushion against external shocks.