The European Union (EU) parliament and Kenya's National Assembly recent ratification of the Economic Partnership Agreement (EPA) between the EU and Kenya is a game changer. This deal offers quota-free and duty-free market access. For the Kenyan farmers, particularly horticulture producers, this is a golden opportunity.
To capitalize on this opportunity, the EU has collaborated with TradeMark Africa, to implement the Business Environment and Export Enhancement Programme (BEEEP) under the EPA. This initiative is designed to support smallholder farmers and producers, helping them cultivate high quality produce sustainably and get it to market efficiently, primarily through sea freight.
The shift from air to sea freight in Kenya is driven by cost-savings, environmental concerns, and the need for supply chain resilience. Sea freight is more economical for large shipments and is seen as a greener option. The Covid-19 pandemic highlighted the vulnerabilities in air transport, prompting businesses to diversify their logistics strategies.
This is where Export Supply Hubs (ESH), also known as consolidation centers, come into play. ESH can revolutionize the export of flowers, avocados, mangoes, and vegetables to the EU and other markets. These hubs signify more than just a logistical shift; it embodies a transformation that addresses critical constraints and boosts export capabilities and competitiveness.
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