October 9, 2025
Kenya’s horticulture sector is a critical pillar of the national economy, contributing around 33% of the country’s agricultural GDP and supporting over four million jobs. Despite its significance and remarkable production volumes, the sector has faced persistent and growing challenges impacting its export earnings, particularly in recent years, where stringent regulatory requirements and logistical disruptions have weighed heavily on performance.
In 2024, Kenya exported approximately 402,000 metric tonnes of horticultural products, including fresh vegetables, fruits, and cut flowers, which accounted for export revenues of about Ksh 136.6 billion (roughly US$1 billion). However, while volumes of exports have generally increased, the first quarter of 2025 saw horticultural produce volumes rise to over 216,000 tonnes, export earnings have stubbornly declined. For example, earnings dropped by 11.2% in Q1 2025 compared to the same period the year before, falling from $349 million to about $309 million.
A key driver of this paradox of falling revenues despite increased volumes is the combination of two main factors: a stronger Kenyan shilling and increasing costs and disruptions in export logistics. The stronger shilling essentially raises the relative price of Kenyan goods abroad, lowering their competitiveness in major export destinations such as Europe and Asia. Furthermore, disruptions in the Red Sea shipping corridor have forced exporters to use longer, more expensive routes, increasing air freight costs and transit times for highly perishable horticultural products.
On the regulatory front, compliance with stringent sanitary and phytosanitary (SPS) standards imposed mainly by the European Union (EU) has intensified significantly in recent years. For example, the EU has raised the frequency of inspections and tightened pesticide residue limits. In 2024, Kenya experienced a sharp increase in the number of consignment interceptions due to exceeding these residue limits, which resulted in export delays and losses. In the same year, the EU also delisted over 30 active pesticide substances. In response, the Kenyan government announced a ban on 77 pesticides in June 2025. These stringent controls are critical to protecting consumer health but pose a growing challenge for Kenyan exporters, especially smallholder farmers who lack the resources to meet these stringent standards consistently.
Another notable phytosanitary challenge is the pest burden, especially regarding cut flowers. The prevalence of pests like the False Codling Moth has led to regulatory interventions, including increased export interceptions and market restrictions in Europe. For example, in 2024, 95 cut flower consignments were rejected and 48 intercepted due to FCM, leading to an estimated loss of €1.1 million. Tackling pest management effectively has become a government priority to sustain Kenya’s flower export markets.
Beyond regulatory hurdles, post-harvest losses remain a critical bottleneck. Estimates suggest that losses of fresh produce post-harvest can be as high as 30% to 40%, oftentimes due to inadequate infrastructure such as poor road networks and a lack of refrigerated storage facilities in rural farming areas. These losses diminish the quantity and quality of exports, ultimately reducing farmers’ incomes and the sector’s overall economic contribution. The cumulative effect of these stringent regulations led to a significant decline in export values. Kenya’s fresh vegetable exports to the EU dropped by 54.7% in 2024, with earnings falling from KSh 50.9 billion to KSh 23.4 billion.
In response to these challenges, the Kenyan government and stakeholders embarked on substantial reforms and initiatives. A flagship effort is the New Export Trade (NExT) Kenya Programme, which over the past five years has sought to strengthen the horticulture sector’s capacity to meet international market demands through improved business practices, infrastructure enhancements, and regulatory compliance. The program aims to double Kenya’s horticultural export revenue over the next decade, targeting a rise from approximately Ksh 156 billion currently to about Ksh 300 billion by 2035.
A mainstay of these reforms is the development of the National Horticulture Traceability System (NHTS) by the Ministry of Agriculture, through the Agriculture and Food Authority (AFA), to automate the tracking of produce from the farm to the market, ensuring compliance with quality and safety standards and improving Kenya’s reputation for reliable exports.
Kenya is also seeking to diversify and deepen its horticultural export markets. While Europe remains the largest destination, growing markets in Asia, such as China, India, and Kazakhstan, offer promising opportunities. Kenya’s Agriculture and Food Authority (AFA) and Italy’s MACFRUT also signed an MoU earlier this year, aimed at increasing Kenya’s horticultural market share and export volume in Italy. The agreement outlines goals for boosting market share by 2%, increasing export volume by over 5% by 2030, and achieving KSh 3.6 billion in exports to Italy over five years.
However, small-scale farmers remain the most vulnerable players, often facing challenges in accessing financial resources, inputs, market information and complying with strict export regulations. Without targeted capacity building and financial support, their participation in export markets remains limited, impacting the sector’s overall inclusiveness and sustainability.