The Kenyan flower industry has faced significant challenges in 2024, from soaring freight costs to increased taxation, affecting both growers and exporters. Despite these hurdles, the sector has shown remarkable resilience, ensuring continuous production and maintaining its presence in the global marketplace. However, the limited freight capacity and the persistent threat of False Codling Moth (FCM) have further strained operations, impacting revenues and increasing operational costs.
Rising Freight Costs and Taxes
One of the biggest concerns for the Kenyan flower industry is the rising freight costs and unpredictable taxation policies. The industry has been experiencing a severe freight capacity shortage since mid-October 2024, with a weekly deficit of approximately 1,000 tons. This shortfall has driven up costs, reaching an unsustainable $5.30 per kilogram.
Further exacerbating the situation is the instability in sea shipments, particularly due to disruptions caused by conflicts in the Red Sea. As a result, growers and exporters have had to rely solely on air freight, significantly increasing their operational expenses.
Adding to these financial pressures are the introduction of new taxes, including the Unique Consignment Reference (UCR) charge, and increased levies by Kenya Plant Health Inspectorate Service (KEPHIS).
These unexpected costs have made it difficult for exporters to remain profitable, with many struggling to absorb over 50 different taxes and levies. While widespread farm closures have been avoided, the industry continues to suffer under these financial burdens.
The Kenyan flower industry is actively engaging with the government and stakeholders to find solutions to these pressing challenges. Industry leaders have submitted proposals to improve air freight capacity, though concrete action remains pending. Additionally, discussions are ongoing regarding taxation reforms to ease the burden on exporters and improve the overall business environment.
Battling the False Codling Moth Threat
The persistent False Codling Moth (FCM) remains a serious challenge for the Kenyan flower industry. The pest, classified as a quarantine species by the European Union (EU) in 2017, continues to cause significant disruptions, with over 40 interceptions recorded in 2024 alone.
Due to Kenya’s favourable climate, FCM thrives on more than 80 plant species, including roses. FCM’s unpredictable movement makes eradication difficult, necessitating proactive measures to control its spread. The Kenya Flower Council (KFC) has intensified efforts by organising training sessions for growers, focusing on early detection and prevention strategies.
© Agroberichten Buitenland | Simon Hinkley & Ken Walker, Museum Victoria, CC BY 3.0 AU
To combat the pest, the industry is also adopting innovative solutions such as chemical treatments, drones, cameras, and mechanical traps to improve scouting and inspection processes. Compliance with these measures is crucial, as failure to meet the required standards by mid-2025 could result in restricted market access for non-compliant farms.
Despite numerous obstacles, the Kenyan flower industry remains determined to thrive. As one of Kenya’s leading export sectors, contributing over 70% of all fresh produce exports, it supports thousands of livelihoods both directly and indirectly.
While government assistance has been limited, industry stakeholders are committed to sustaining the sector by fostering innovation, advocating for better policies, and improving market competitiveness. The Kenya Flower Council continues to push for practical solutions to ensure the long-term viability of the industry.
A Determined Industry Moving Forward
Over Valentine’s season, growers ramp up production, as the holiday accounts for nearly 35% of annual flower exports. Between mid-January and February 10th, shipments surge, with daily exports increasing from 60 million to nearly 100 million flower stems.
However, limited freight capacity remains a pressing issue during this critical period. A 30% reduction in available freight space has complicated logistics, making it challenging to meet the heightened demand. Nonetheless, the market remains strong, and if viable freight solutions can be implemented, Kenya will continue to compete effectively in the global flower trade.
The good news is that flower quality has significantly improved, thanks to ample rainfall and favourable growing conditions. As a result, the industry remains confident in its ability to supply premium flowers, further strengthening Kenya’s position as a top exporter.
The Kenyan flower industry is navigating a tough period, but its resilience and adaptability are evident. Despite rising freight costs, increased taxation, and the False Codling Moth threat, the sector continues to innovate and push for supportive policies. With strategic government interventions and industry-led solutions, the future of Kenya’s flower exports remains promising.
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