Kenya’s flower industry reports losses as war disrupts exports

Kenya’s flower industry is losing up to $1.4 million per week as the war in the Middle East affects demand and shipping, Associated Press reported on 25 March.

Growers said exports have fallen due to lower demand and cargo disruption to both the Middle East and Europe. The sector is valued at more than $800 million annually, according to the Central Bank of Kenya.

At Isinya Flower Farms, about 56 kilometres south of Nairobi, exports have dropped by more than half. Marketing manager Anantha Kumar said shipments had fallen from around 450,000 stems per day to between 150,000 and 200,000, with around half of crops going to waste.

Direct exports to the Middle East account for about 30% of output at the farm and around 15% nationally, while Europe remains the largest market at about 70%. However, cargo disruption has also reduced shipments to Europe, leading to lower volumes and higher costs.

Kumar said freight costs have increased sharply due to reduced cargo availability, with fewer flights and higher prices making exports harder to sustain.

The Kenya Flower Council said the industry had lost more than $4.2 million over the past three weeks. Chief executive Clement Tulezi said the losses were caused by delays, longer transport routes and higher freight charges.

He said prices had reached $5.8 per kilogram, the highest level in a decade, adding that the increase was unsustainable.

Tulezi said about $2.1 million of the losses were linked to a lack of flights, with the remainder due to delays in deliveries. He warned that if the situation continues, weekly losses could increase further.

Growers said a prolonged conflict could further weaken the sector, raising concerns of a downturn similar to the Covid-19 period.

The industry employs up to 500,000 people directly, and the ongoing impact could lead to job losses. World Bank trade data shows Kenya is among the world’s top  five exporters of cut flowers.

The Kenya Flower Council said it is lobbying the government to introduce direct cargo flights to Europe to maintain access to key markets.

Associated Press, World Bank, Maghrebi.org