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- 70% of Kenyan exports have been affected by border closures
A steady recovery is being seen in horticulture, especially the flower sector in the international market, but faced with a new challenge, says the Kenya Flower Council (KFC).
“Demand is beginning to grow – a sign that the flower industry could get back on track. This improvement now poses a new challenge. The available freight capacity cannot accommodate the rise in volume demand,” says Clement Tulezi, the council’s chief executive.
Besides the inadequate freight capacity, Tulezi says airlines have increased their rates tremendously, and are charging more than doubled the initial cost from Nairobi to most market destinations.
“Exporters are unable to meet these exorbitant prices. Yet, they have to service orders for the European Mother’s Day this week,” Tulezi said in a statement issued on Monday.
Prior to the Coved-19 outbreak, the capacity available per week was approximately 5000 tons but as of today, the capacity is at 1300 tons for all commodities. These include flowers, fish, vegetables.
Yet, the current demand for exports is 3500 tons per week.
According to Okisegere Ojepat, chief executive of the Fresh Produce Consortium of Kenya (FPC-K), then, they used to have six airlines taking cargo-only flights out of Nairobi accounting for about 60 per cent of their air cargo, while cargo carried in the bellies of passenger flights accounted for another 40 per cent.
“That 40 per cent has stopped, but so too have the majority of cargo flights. Where we had cargo flights coming in and out that could carry 1400 tonnes a week, we now have enough to transport just 360 tonnes,” says Ojepat.
The flower industry employs more than 150,000 people directly and over one million indirectly, according to KFC.
In 2019, the value of exported flowers declined by eight per cent (KSh 9 billion reduction) to stand at KSh104.4 billion down from KSh113.2 billion recorded in 2018 despite an increase in flower export volumes increasing from 161.2 million kilos in 2018 to 173.7 million kilos in 2019.
“Exporters now require urgent support to keep transport going ad inject new life into the Kenya flower industry. We can work with the bigger freight forwarders in Nairobi to attract some capacity, but it comes at a cost higher than the industry can afford. A cost-sharing model to lessen the burden on exporters will go a long way in helping survive this catastrophe & save lives,” says Tulezi.
Kenya’s COVID-19 cases have risen to 208, recoveries (40), deaths (9) as of Monday 13, April.
The country has temporarily suspended all international flights with the exception of cargo flights.
