Challenges in the Horticultural Sector: Why Karuturi Needs to Resume Operations

Over the years, the horticultural sector has been the core of Kenya’s economy providing not only employment opportunities but revenue for the country as well.

The subsector is one of the top foreign earners in the country generating approximately one billion US Dollars annually.

Horticultural crops that are mainly grown in Kenya include flowers, fruits, vegetables, and potatoes among others.

Floriculture is a subsector under horticulture that mainly deals with the cultivation of flowers, a key component in the horticultural sector.

Currently, the floriculture subsector contributes more than 1 percent of the national Gross Domestic Product (GDP) with the whole horticultural sector being among the fastest growing sectors in Kenya.

Kenya has a long history of growing horticultural crops for both domestic and export markets. The ideal tropical and temperate climatic condition has greatly helped in helping the sector blossom.

Stats show that about two million people are employed in the horticultural sector with the majority of them (80 percent) being small-scale growers. The sector has been key in alleviating poverty and providing higher incomes to small-scale farmers around the country.

Despite the numerous advantages that accompany the horticultural sector in Kenya, the sector faces numerous challenges that are threatening to bring it to its knees.

Some of these challenges include:

A stiff competition from other international market producers such as Netherlands and Israel. This has ended up affecting the prices of our products, especially flowers at the international market.

Inadequate refrigeration materials for these products. Most of these products are delicate. Flowers and fruits, for instance, are perishable. Lack of proper storage facilities has led to farmers and organizations running into losses.

Poor infrastructure such as roads. Most of these products are grown in rural areas that are often impassable especially during rainy season. The products end up being damaged and, therefore, by the time they reach the market, they fetch little or no cash at all.

High cost of doing business in Kenya. Kenya still ranks the highest among countries where the cost of doing business is very high. This has ended up affecting existing investors and scaring away prospective ones.

Inadequate support from the government. There is a general inadequate support from the government into the horticultural sector. Most investors have been left to fend for themselves and struggle to recover in case of losses.

Poor marketing strategies in the sector is also a major challenge that is costing both existing and those willing to join the sector.

Last week, the country was treated to a ‘fight’ between the flower grower, Karuturi, and CFC Stanbic Bank. CFC Stanbic had kicked off the process of auctioning the properties of Karuturi, the move the High Court stopped on Tuesday.

Karuturi has a history of being among the largest employers in the country having been employed more than 2,000 workers. The company also prides itself on having constructed 2,200 gated community houses for its stuff. The company also had set up a 100-bed capacity hospital for the communities in Naivasha as well as primary and secondary school.

Records also show that the least paid worker at Karuturi was earning 10,000 shillings, 4,000 shillings above the average pay in the region.

News that Karuturi was going down is not only terrible news to employees but to the economy as well. Already the hospital has closed down and the school is half closed and the future for thousands of people is just unknown.

There is a need for Karuturi to resume operations, not for its own sake but for the sake of the people who depend on it and for the country as well.