Kenya’s earnings from fresh produce exports in 2018 jumped to 153.68 billion shillings, a 33 percent increase over 2017 earnings.
Unveiling the statistics, Mr. Hosea Machuki, Chief Executive Officer of Fresh Produce Exporters Association of Kenya said the sector has remained resilient amid various challenges, both fiscal and operational.
“The sector has seen marked resilience and continued growth and huge potential which has enabled it to weather various challenges such as the Brexit shock and fertilizer shortages which the sector faced,” said Mr. Machuki said.
Flower exports contributed 113.16 billion shillings up from 82.24 billion shillings earned in 2017, representing 37.8 percent growth.
Fruits and vegetables earned 12.83 billion shillings and 27.68 billion shillings in 2018, up from 9.0 billion shillings and 24.06 billion shillings earned in 2017, respectively.
The cut-flower export still remains the largest earner, contributing 74 percent of the total fresh produce annual earnings, fruits at 8 percent and vegetables at 18 percent.
Related Content: Kenya Earned Sh115 Billion from Fresh Produce Exports in 2017
Challenges
In 2018, the horticulture industry was hit hard by an acute shortage of soluble fertilizer resulting from stringent and lengthy clearance process by the Kenya Bureau of Standard at the port of entry.
The sector was also hit by the imposition of 16 percent VAT on pest control products and VAT return estimated to be 3.5 billion shillings, increasing the cost of production, resulting in non-competitiveness in the international markets.
Speaking at the same event, Principal Secretary, Ministry of Trade Dr. Chris Kiptoo said the Government was working toward expanding the export market for the horticultural products besides the primary European markets.
“The government is exploring new markets like China to complement the traditional European market. Already a delegation from China will be in the country soon to evaluate the avocado market and we are optimistic soon our farmers will start export to the Chinese market. US market is also key for us, following the commissioning of the direct flight between Kenya and the United States,” Dr. Kiptoo said.
Dr. Kiptoo also noted that the Government was in discussion with the United Kingdon on the issue of Brexit to ensure that the sector is not adversely affected, irrespective of the outcome of the process.
Also Read: China’s Deal to Provide Kenyan Farmers with Over 40 Percent Fresh Produce Market