Why Kenya must rethink its flower, perishable trade strategy

The global flower market is both vibrant and fiercely competitive, with Kenya standing as a key player. Yet behind the industry's blooming success lies a tangle of challenges — from environmental strains to economic pressures — that threaten its future. Addressing these issues with innovation and resilience is essential to sustain growth and secure long-term success.

Kenya's flower industry has emerged as a global powerhouse, contributing $3.7 billion to the Kenyan economy. However, Clement Tulezi, CEO of the Kenya Flower Council, painted a nuanced picture of the country's floriculture sector, highlighting both its achievements and challenges. Tulezi warned of significant hurdles threatening the sector's sustainability.

He was delivering the Keynote Address at the recently concluded Flower Logistics Africa (FLA) 2025 in Nairobi, which was followed by Perishable Logistics Africa (PLA) 2025.

Production costs and taxation emerged as primary concerns. "Growers are paying up to 52 taxes and levies every year," Tulezi emphasised, noting that input costs for fertilisers, chemicals, and machinery continue to rise, shrinking profit margins. Climate change and water scarcity pose additional challenges. Prolonged droughts have dried out boreholes, creating uncertainty for farmers about future production capabilities. European Union regulations present another critical obstacle. Stringent phytosanitary requirements, particularly around the false coddling moth, have led to increased shipment rejections. "Last year, 95 shipments were rejected, costing exporters 1.05 million euros," Tulezi revealed.

The industry faces intense international competition, particularly from Ethiopia and Colombia, where production costs are significantly lower. "In Kenya, a farmer pays $2.7 per kilogram for flowers, compared to $1.9 in Ethiopia," Tulezi highlighted. Logistics compound these challenges, with freight costs skyrocketing from $2.1 to $4.3 per kilo between October 2024 and January 2025.

Looking forward, Tulezi proposed some solutions as well, including transitioning partially to sea freight, promoting value addition, supporting small-scale growers, and emphasising sustainability certifications. "We believe the industry has the potential to double in the next 10 years," Tulezi concluded, "but this requires addressing current challenges and innovating across the entire supply chain."

Eliud Njenga, Managing Director of Credible Blooms, during one of the discussions, emphasised the difficulties faced during peak seasons like Valentine's Day. He explained how freight rates had surged from $3.2 per kilogram to $4.5, significantly impacting growers who had pre-committed prices. "We had a lot of offloads, and some shipments were rolled over. The increased freight rates were really hurting the business," Njenga noted.

He described the dual challenge of limited air freight capacity and escalating rates as a pressing concern for exporters.

Elizabeth Kimani, General Manager of Sian Sololo Agriculture, echoed Njenga’s concerns while adding her perspective on affordability. She acknowledged that air freight capacity had improved compared to previous years but stressed that high costs remained prohibitive for many growers. "There is a difference between having capacity and having affordable capacity," Kimani explained. She revealed that some farms opted to retain their flowers rather than incur losses from exorbitant shipping costs.

Providing another viewpoint, Claris Wanjohi, Export Manager at Wafex, discussed the challenges faced by middlemen in balancing supply and demand during peak seasons. While she agreed that capacity had improved this year, she highlighted discrepancies in growers' ability to meet pre-confirmed demand. "For us as middlemen, it was a 50-50 balance on both sides," Wanjohi stated, reflecting on the complexities of managing logistics amidst fluctuating supply.

Kenyan fresh produce exporters, which include not only flowers, are calling for immediate action to diversify international markets and improve government support, highlighting critical challenges in the current export ecosystem.

During PLA 2025, Christopher Flowers, Managing Director of Kakuzi, delivered a stark warning about Kenya's over-reliance on European markets. "70% of our exports go into Europe, with only 1% to China and about 7% to India," Flowers explained, emphasising the urgent need for market expansion.

Okisegere Ojepat, CEO of Fresh Produce Consortium of Kenya, painted an equally challenging picture, describing Kenya's current export portfolio as "very lean." He pointed out the limited range of export products, which currently include avocados, beans, passion fruit, mangoes, herbs, and flowers.

"We are currently doing much more on avocado and very little on other areas," Ojepat stated, highlighting the vulnerability of Kenya's export strategy. Ojepat was particularly critical of government processes, noting that "the private sector is willing to move faster, but government processes are going too slow." He highlighted specific challenges, including unpredictable market access, lengthy export processes, difficult access to finance and complex regulatory frameworks.

The exporters' key message is clear: Kenya must rapidly diversify its markets, improve government support, and develop more sophisticated export strategies to remain competitive in the global agricultural market. "Unless we diversify our markets, we are saying to our farmers, plant this green gold, take your valuable land, take your valuable resources and turn it into something that we can't sell," Flowers warned. Flowers specifically called for the "private and public sector working hand in glove to develop market access."

Government agencies play a crucial role in the efficient movement of export goods. For instance, the Kenya Revenue Authority (KRA) is changing export logistics through digital and procedural reforms to strengthen the country's perishable export infrastructure.

Lilian Nyawanda, Commissioner, Customs & Border Control, Kenya Revenue Authority, highlighted the critical importance of the horticultural sector while delivering her Keynote Address at PLA 2025. "The horticulture sector plays a vital role in economic development, offering substantial opportunities for both skilled and unskilled labor," she emphasised.

To address sector challenges, KRA has implemented the Integrated Customs Management System (ICMS), a technological platform designed to streamline cargo clearance processes. The system eliminates manual document submissions and integrates with multiple government platforms to expedite export procedures.

Key strategic initiatives include 24/7 operations for fresh produce exports, a green channel for the automated release of perishable goods, non-intrusive cargo inspections using X-ray scanners and real-time electronic cargo tracking. "Customs plays a pivotal role in ensuring smooth, compliant, and cost-effective movement of perishable exports," Nyawanda stated.

The commissioner also highlighted recent trade agreements with the EU, African Continental Free Trade Area (AfCFTA), and UAE, which open new market opportunities for Kenyan exporters. "These agreements present significant opportunities, but realising their benefits requires sustained collaboration between the private sector and government," she concluded.

The future of Kenya's flower industry hangs in the balance as it navigates a multitude of challenges. Addressing these issues will require a concerted effort from both the private and public sectors to innovate, diversify, and support sustainable practices. By understanding these challenges and potential solutions, stakeholders can work together to ensure the long-term viability of this critical economic sector.

The conference also partnered with African e-mobility company eBee to give away an eBee Nyuki bicycle to the lucky draw winner Alice Mungai, Director of Farm Place Exporters.

Organised by Logistics Update Africa, the annual two-day conference and networking event was supported by Kenya Airports Authority, Brussels Airport, Ostend–Bruges International Airport, Maastricht Aachen Airport, Frankfurt Airport, Etihad Cargo, Liege Airport Challenge Handling, Teesside International Airport, Fresh Produce Consortium of Kenya, TradeMark Africa, the Fresh Produce Exporters Association of Kenya, the Shippers Council of Eastern Africa, Fairtrade Africa and the Kenya Flower Council.