The Kenyan flower industry faced several challenges in 2024. Fortunately, the sector maintained its stability in production and marketplace, but the demand was not optimal and the revenues were much lower than in previous years. The reason? Inadequate freight capacity, high freight costs and increased taxes. Producers were hit hardest, though widespread closures were avoided. Moreover, the false coding (FCM) pest has been and still poses a threat to the industry. Despite these obstacles, the sector has shown resilience, embracing innovative solutions and advocating for supportive policies to sustain its critical role in Kenya's economy. While everything seems to be on course ahead of Valentine's Day, the biggest challenge is freight space and cost. This is explained by Clement Tulezi, CEO of the Kenya Flower Council, who also highlights the association's ongoing efforts to address these challenges, enabling the sector to thrive.
Clement Tulezi at the IFTF 2024 in Vijfhuizen, the Netherlands.
Height freight costs and taxes
Limited freight capacity and associated high costs have been major factors squeezing the revenues of growers and exporters. But why are these costs so high? Tulezi explains: "Since mid-October, the industry has been facing a capacity shortage in air freight. Every week, we lack about 30% of the needed capacity; this is around 1000 tons, and that is big. In turn, this has driven costs up significantly, reaching $5.30 per kilogram. We also hoped to gain traction with sea shipments, but the ongoing war has disrupted traffic through the Red Sea, forcing everything to be transported by air. This is a very difficult period for growers and exporters.
As for taxes, we have witnessed an ad hoc introduction of taxes and levies. Top of the list is the Unique Consignment Reference (UCR) charge, introduced mid-year 2024, and the increase of KEPHIS levies. The UCR particularly has remained a significant burden for exporters, who are struggling to absorb this additional huge cost on top of other over 50 taxes and levies. Exporters are literally surviving through it. Fortunately, we haven't seen widespread farm closures, one or two small farms, perhaps, but the industry is hurting"
Dealing with the freight and tax obstacles
To tackle the challenges mentioned above, we are talking to the government growers. "We are in ongoing discussions with the national government regarding air freight. We have shared our proposals with the government that we believe provide practical avenues to improve the air freight situation. Not much has happened, but we remain optimistic. As for the tax issue, we have provided input in the current business reforms advanced by the government. On whether these will amount to anything tangible, we wait to see."
False Codling Month
As if the other challenges weren't enough, growers are also battling the persistent threat of False Codling Moth (FCM). Declared a quarantine pest by the EU in 2017, FCM has continued to plague the Kenyan flower industry. Despite ongoing efforts to manage it, over 40 interceptions were recorded in 2024 alone. Tulezi explains that the pest's persistence is due to its endemic nature within Kenya's environment. "The conditions here are ideal for its development, and it can easily survive on more than 80 different plant species, including roses," he says. The pest moves in unpredictable ways, which makes eradicating it particularly challenging. However, the industry remains proactive, with the Kenya Flower Council spearheading training sessions for growers and being part of the development of a common FCM systems approach. And the interest in the training is high "Between November and December 2024, a series of training sessions were held to educate growers on how to identify and prevent FCM contamination. The strong turnout at these sessions indicates the seriousness with which the industry is addressing the problem." Tulezi emphasized that by mid-2025, every farm must be fully compliant with the guidelines, or else they risk being excluded from the export market. "By the end of April 2025, we need to demonstrate that these numbers are coming down. If not, it will be very difficult for farms to continue exporting," he warns. In addition to educational efforts, the industry is exploring a range of innovative solutions, including chemical treatments approved for use and mechanical interventions like drones, cameras, and traps. "The aim is to improve scouting and inspection within greenhouses and during post-harvest processes, ensuring that FCM-free flowers reach international markets."
Not giving up
Despite the numerous challenges facing the industry, the Kenyan flower sector remains determined, as Tulezi emphasizes. "The flower industry is crucial to Kenya, accounting for over 70% of all fresh produce exports. This means that a vast number of people are directly or indirectly involved in the sector." While government support has been limited, the Kenya Flower Council continues to work tirelessly to overcome the hurdles. Tulezi further explains, "This is a business we've nurtured over the years, and it supports thousands of livelihoods, both directly and indirectly. Additionally, flowers are one of the few export commodities we have - without them, Kenya's export economy would be severely weakened. We understand this and are committed to finding solutions to ensure that this vital sector continues to thrive. We are working with both the government and stakeholders to navigate these challenges and ensure we maintain our market share."
Valentine's Day 2025
Valentine's Day is around the corner, meaning busy times for the growers as Valentine's Day alone accounts for 35% of the flower sector's annual exports. "Mid-January, the first flowers left the farms and the Valentine's Day exports will continue till February 10th."However, logistics is still the main challenge, especially concerning freight space and cost. "On a typical day, Kenya exports about 60 million flower stems, but during Valentine's season, that number surges to approximately 100 million stems per day. The loss of 30% of freight capacity during this critical period makes the situation even more complicated. Despite these hurdles, the demand is there, and the market is responding. If a solution to the freight issue can be found, there's a lot of potential for us to compete, Tulezi says. "Fortunately, we now have good quality flowers. The rains have ensured an ample supply of water, and the overall production has remained high. The quality of flowers continues to improve each year, making Kenya a strong competitor on the global stage."
However, as Valentine's Day approaches, negative stories about flower cultivation often surface, which deeply saddens Tulezi. In the upcoming article, we will highlight how the Kenyan flower industry has evolved over the years and showcase the ongoing efforts of the Kenya Flower Council to improve every aspect of the sector, mainly touching on sustainability. Today, the Kenya Flower Council also sent out a press release that they fully support the French Agency for Food, Environmental, and Occupational Health & Safety (ANSES) decision to investigate pesticide exposure among floriculture professionals. This initiative represents a critical step toward highlighting the progress, sustainability efforts, and transformative investments already achieved by Kenya's floriculture industry.
For more information:
Kenya Flower Council
info@kenyaflowercouncil.org
kenyaflowercouncil.org