Kagwe calls for reforms in flower industry

Agriculture Cabinet Secretary Mutahi Kagwe. [File, Standard]

Agriculture CS Mutahi Kagwe has highlighted the need for urgent reforms in the horticultural sector to improve the performance on a global scale and improve its impact on the economy.

The CS said lowering transportation costs, zero-rating packaging materials, and reducing the cost of freight are key to encouraging local processing.

Kenya exports to over 60 countries, earning over Sh100 billion annually, making it the third-largest exporter of cut flowers worldwide.

According to the CS, however, behind the success, there are pressing concerns that are slowly dimming the fortunes of the sector.

'We have rising production and freight costs, arbitrary cess fees by counties, and burdensome export levies that are being imposed. And these are just some of the major bottlenecks," he said.

Kagwe further stressed the importance of addressing the cost of airfreight, often charged in foreign currency, strengthening cold chain logistics, and supporting compliance with tough international standards like the EU's new false codling moth regulations.

"Kenya is not just a part of a global flower business. Kenya is a dealer in the business," Kagwe said, adding "We have to maintain and even improve our position."

While Kenya has done well in Europe and is starting to make inroads in the Asian markets, and despite being a floral powerhouse globally, access to the US flower market remains limited.

It emerged that US consumers are increasingly valuing traceability, fair labor, and environmental sustainability - all areas where Kenya's flower industry, through initiatives like the Kenya Flower Council's sustainability standards, has made significant strides, thus priming the country's product for that market.

The sector is the largest employer in the government of Kenya. The more jobs we create the more we earn in terms of exports," Kagwe added.

He spoke at the start of a three-day flower expo in Nairobi. Kenya is hosting the three-day international flower trade expo that seeks to champion sustainable Floriculture (IFTEX).

The event at Oshwal Religious Centre, Nairobi, brought together flower growers, suppliers, exporters and stakeholders in the Floriculture industry across the world.

The CS performed the official launch of the event, which will run until Thursday.

The exhibition's theme is "Supporting Sustainable Floriculture in Kenya."

It aims to create a networking platform to engage with buyers both locally and internationally, and was organized by HPP Worldwide with the support of Kenya Flower Council, Kenya Plant Inspectorate Service (KEPHIS) and Agriculture and Food Authority (AFA).

The meeting comes at a time when Kenya's flower industry is blooming on the global stage, but key players are warning of challenges threatening its growth including climate change and a weakening global economy.