Kenya's flower exports now feel the heat of rising freight costs

Workers at the Maridadi flower farm in Naivasha. [File, Standard]

Kenya’s flower industry, long celebrated as one of the country’s biggest export success stories, is staring at fresh uncertainty as rising freight costs, global geopolitical tensions and increasing production expenses pile pressure on growers and exporters.

The sector, which has over the years positioned Kenya as Africa’s leading flower exporter, is now warning of possible job losses, shrinking export volumes and closure of small and medium-sized farms if urgent interventions are not implemented. According to the Kenya Flower Council (KFC), the industry is currently operating under one of the toughest business environments witnessed since the Covid-19 pandemic.

The flower sector generated about $845 million (Sh110 billion) in export earnings in 2025, contributing approximately 1.5 per cent directly to Kenya’s GDP.

Beyond the numbers, the industry supports more than 200,000 direct jobs and sustains over one million livelihoods across the value chain — from flower farms and packhouses to transport, cargo handling and export logistics.

Women continue to form the backbone of the industry, accounting for more than 60 per cent of the workforce.

For decades, Kenya’s flowers have remained highly competitive in the global market, with the country exporting to more than 60 destinations worldwide.

The European Union remains Kenya’s biggest market, taking up nearly 70 per cent of flower exports, while demand from the Middle East and Asia continues to grow steadily.

The industry’s success has largely been driven by Kenya’s favourable climate, high-altitude conditions and advanced logistics network that allows flowers harvested in Naivasha to land on supermarket shelves in Europe within 24 hours.

But that efficiency is now coming at a much higher cost. Speaking to the press during the prelaunch of the international floriculture trade fair scheduled for next month, Lina Jamwa, KFC’s membership engagement and communications manager, said “air freight charges have risen sharply from approximately $3.10 (Sh450) per kilo to nearly $5.00 (Sh700) per kilo within a short period, a spike the industry says is now threatening the sustainability of flower exports.”  

“For a sector that relies entirely on air transport due to the highly perishable nature of flowers, exporters say the increase has become a major blow to operations.

Industry players now estimate that freight alone accounts for between 40 and 60 per cent of total export costs during peak seasons, placing nearly $4 million (Sh560 million) worth of flower exports at risk every week,” she added.

At the same time, growers are grappling with rising fertiliser prices and increasing farm input costs.

The council says fertiliser prices have increased by about 25 per cent within a week, while overall production costs have risen by between 20 and 30 per cent across many farms.

Some exporters are also reporting revenue losses of up to 75 per cent following shipment delays and disruptions in cargo movement.

The sector is further struggling with delayed VAT refunds amounting to more than KES 10 billion, a situation growers say has worsened cash flow challenges at a time when many farms are already operating under tight margins. Industry projections now show that if the current situation persists over the next one to two months, Kenya could lose up to 20 per cent of its flower export volumes.

That could translate into export losses exceeding $15 million (Sh2.1 billion) every month, alongside possible job losses estimated at up to 50,000 workers.

Smaller farms are expected to bear the biggest impact, with fears that some could shut down completely if the operating environment does not improve.

Still, even amid the uncertainty, the industry insists Kenya remains a trusted global supplier. According to the founder Dick Van Ramsdock, founder of the International Floriculture Trade Fair (IFTEX), the current international and economic turmoil, the consequences of which we feel, it is impressive to see how the Kenyan flower sector continues to grow. 

The sector says years of investment in sustainability, innovation and ethical production continue to strengthen buyer confidence in Kenyan flowers.

“The industry has automated the issuance of phytosanitary certificates and plant import permits through the integrated export-import certification system,” said Dr Isaac Macharia, director of phytosanitary and biosecurity services at Kenya Plant Health Inspectorate Service (Kephis).

Through the Flowers and Ornamentals Sustainability Standard, commonly known as FOSS, Kenya has increasingly positioned itself as a leader in sustainable floriculture.

The certification framework focuses on ethical labour practices, worker welfare, water conservation, renewable energy adoption and climate-smart farming.

According to industry data, more than 92 per cent of member farms have adopted integrated pest management systems, while over 85 per cent now use efficient irrigation technologies.

As global consumers increasingly demand sustainably produced flowers, Kenya says it is shifting from being just a flower exporter to becoming a global benchmark for responsible floriculture.

To cushion the sector from the ongoing crisis, the Kenya Flower Council is now pushing for urgent government intervention, including the release of pending KES 10 billion VAT refunds, temporary tax relief on fertilisers and review of statutory levies affecting exporters.

The industry argues that protecting floriculture is not just about supporting flower farms but also safeguarding jobs, foreign exchange earnings and rural livelihoods that depend on the sector.

“Even as global uncertainty continues to disrupt supply chains, Kenya’s flower exporters maintain that the country remains competitive, reliable and open for business, with roses constituting 69 per cent of the country’s total flower exports” said Isdorah Odundo, Principal Market and Product Development Officer, Agriculture and Food Authority/Horticultural Crops Directorate.

The stakeholders maintain that the cost of intervention today is far lower than cost of sector collapse tomorrow.