Horticulture earns Kenya Sh115 billion

A worker from Naivasha based Van Den Berg prepares roses for export. [Photo by Antony Gitonga/Standard]

Kenya beat a prolonged drought and high production costs in the horticulture industry to post export earnings of Sh115.3 billion last year, new data shows.

This is compared to Sh101.5 billion in 2016, representing an 11 per cent increase.

Data from the Fresh Produce Consortium of Kenya (FPC Kenya), formerly Kenya Association of Fruits and Vegetable Exporters, shows that cut flower exports contributed the biggest chunk of overall earnings, bringing in Sh82.2 billion, up from Sh70.8 billion earned in 2016.

This represents an 11.6 per cent growth.

Okesegere Ojepat, FPC Kenya's chief executive, said at an industry round-table meeting in Nairobi yesterday that cut flower exports remained the biggest foreign exchange earner, contributing more than 70 per cent of the total fresh produce annual earnings.

The country exported 159,961 tonnes of cut flowers last year.

Fruits and vegetables, some of the other big earners in the European market, raked in Sh9 billion and Sh24 billion respectively.

The volumes exported amounted to 56,945 tonnes and 87,240 tonnes respectively.

“Despite the political and economic storm witnessed in 2017, the industry performed fairly well and earned the country some good foreign exchange. We have witnessed the same resilience that enabled the sector to weather the Brexit shock that was witnessed in 2016,” said Mr Ojepat.

He said apart from the severe drought and a prolonged electioneering period that brought about a general economic tumble, the fresh produce sector also experienced other challenges, including lack of Government-supported extension services to farmers.

Brokers and other middlemen at the same time created cartel-like structures that exploited farmers.

“We also have insufficient cooling facilities as well as a weak compliance with food safety requirements that lock us out of the international market. On top of that, taxation from the Government is a bit stringent for the industry and offers little encouragement in the entire value chain,” said Ojepat.