Over the last years , the Kenyan flower industriousness has grow rapidly . It currently is the commonwealth ’s top industriousness after remittance , touristry and tea , and Kenya Flower Council ’s ( KFC ) CEO Clement Tulezi believes the industry to can outgo tea in the next few years . However , there are several challenges , like freightage capacity and rate , Kenya ’s taxation regime and the EU - tightened plant health regulations , the industry needs to overcome . The team of KFC is doing their utmost best to turn on the industriousness to do so , lease with all involving relevant actors for Modern and improved solution and option .
Clement Tulezi at the IFTEX 2019 in Nairobi , Kenya .
Kenya ’s cut flower industry has grownCurrently , the Kenya prune blossom industry employs 200,000 masses directly and had over 1 million hoi polloi supplying the industriousness , explains Tulezi , who is very pleased with the growth over the few last years . “ When comparing the berth with 5 years ago , the manufacture has improved significantly in all aspect ; it has become more unionized and we ’ve strengthen our system on how the grower bring forth their products in terms of sustainability and the working conditions of the workers . More and more agriculturist are now certify and the KFC Flowers and Ornamentals Sustainability Standard ( F.O.S.S ) is now one of the major standards in the world , based on Good Agricultural Practices , environmental and socio - economic precept , which control license manufacturer foster sustainable , responsible , and good production of slashed blossom and ornamental . In the come age , Tulezi has in effect hopes for the manufacture as he gestate the industry to raise even further .
The three challenges for 2021The Kenya cut flush industry is eager and quick to grow more , but several external cistron may limit this growth , Tulezi state . accord to him , the three major challenges for 2021 are lading , Kenya ’s tax revenue regimen and the EU - tightened plant wellness rule . Below , each challenge highlighted and what KFC is doing to activate the manufacture to flourish .
FreightAir consignment is one of the major aspects that is eat in on the profits of the agriculturist . “ fortuitously , demand is there , but the lack of capacity and the increased pace are the constriction . Freight has always taken up quite a chunk of the costs and now , as it increase by around 20 % , the growers definitely feel it . ” For this reason , KFC is in airless striking with consignment forwarders and is also looking for alternative to transport blossom . “ One of the thing we are take care at shipping blossom to Europe is by ocean . Colombia succeeded shipping flowers to the US and over 50 % of their produce is belong by sea . Of of course , they are closer to the US than Kenya to the EU , but we , with the support of major emptor and Kenyan self-confidence , this is a executable option . Recently , we witnessed some successful trials on some change by the Royal FloraHolland , which it took 28 days to send the merchandise from Mombasa to Amsterdam . Now , more trials across different flower type are involve . KFC is now engaging the governance to provide a ‘ green channel ’ , so that there will be no postponement at the port of going in Mombasa . The external buyers and exporter are keen and so far , the government seems to be very understanding and willing to help ”
tax revenue regimeLocally , the Kenyan USDA and sweet produce industry is dealing with an growth taxes in the supply strand . “ The politics is not collecting enough revenue enhancement to meet its budget . It has to parent the shortage locally and through national and outside borrowing ; which intend the intromission of several Modern taxis from key sphere such as agriculture , affecting many diligence , admit the undercut flower and ornamentals industry . The increase in taxes will be on Cartesian product and good such as chemicals , fertilizers , tractors and machinery , but also on service . The late gain in the Horticultural Crops Directorate from 10 cent per kilo of export reinvigorated green groceries to 0.25 percent of the Free on Board time value has pushed this levy up to 10 times . ” As a solvent , these taxes will negatively impact the industry . to boot , KFC has make a motion to royal court to take exception the imposition on 1 percent Minimum Tax by the administration . “ The gain in taxes will constrain the expanding upon of our sphere and we will lose investor , who will decide to go elsewhere . We are explaining to the government that it should not kill the goose that repose the eggs , but it should sustain it . We are crossing our fingerbreadth on the budget reading , coming soon , to see how taxes will further impact the industry . ”
EU plant wellness regulationsAnother gainsay the Kenyan growers will be get by with in 2021 is the tightening of the EU plant wellness regulations . “ False Codling Moth is a pest that often occurs in roses , but also on capsicum and many other crop . The EU is presently doing 10 percent lower limit check on all Kenya ’s roseate shipments due to the occurrence of this cuss . We are worried that this may increase a duet of clock time if the pestilence proceed to be discover in our produce . This will slow down the movement of the goodness and extra manpower will be needed , which means redundant monetary value for the exporter . ” It is a pest many rural area are cope with , but as Kenya is the fully grown exporter , we stay on the independent focus , he explains . KFC together with NPPO , KEPHIS and the raiser and exporters are doing their uttermost good to minimize the occurrence of this pest . “ We are tightening the communications protocol and guidelines and asking growers and exporters to implement to the varsity letter . ”
Expanding markets , how ’s that going?The majority of the Kenya ’s cut bloom are shipped to Europe and even though there is plenty of chance to blow up in that continent , expanding into other continent and countries has been , and still is , an important point on KFC agenda for many long time now . Over the geezerhood , Kenya entered Australia and the US , but how ’s that going at the instant ? According to Tulezi , there is still much to do . “ We used to be one of Australia ’s main suppliers of blossom , but Australia ’s zero pest tolerance directive that is effective since September 1 , 2019 , resulted in a loss of interest group from many agriculturist . We used to have 200 consignment every month and it now drop down to 70 shipment . On the positive side , due to our and the agriculturalist ’s efforts , the non - complaisance dropped as well , from over 80 % to about 35 % .
Also the supply to the US has not really took off . “ In October 2018 , Kenya Airways jump flying flower directly from Nairobi to New York . It started with 5 escape , then scaled down to 3 consignment in 2019 and dropped to zero due to the COVID-19 site . It is still a interrogative sentence mark if it will go back , and at what absolute frequency ? Cut flowers are being send in the belly of the Kenya Airways rider flight , about 30 tons ; so , if the airline starts with one flight of stairs again , it will be a Brobdingnagian challenge for us to compete in the US . But we will see what the time to come impart . ”
Positive outlookDespite the current challenge KFC and the Kenyan raiser and exporters are dealing with , Tulezi is overconfident . “ We ’ve accomplished a lot in the last number of years . We ’ve made major steps and the Kenyan flower industry have become a structured diligence . On top of that , realisation of Kenya as a major provider of quality bloom has increase sharply and we have expert hopes that it will continue in the future . Now , as KFC , we are doing our farthest better to keep to let this diligence boom . ”
For more information : Kenya Flower CouncilSuite 12 , 4th Floor , The Greenhouse Building , Adams Arcade , along Ngong RoadMobile : ( 254 ) ( 0)733 639 523[email protected]kenyaflowercouncil.org
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