Flower farmers scale down production amid water scarcity

According to the Trade ministry, the Cabinet has already approved the transformation of export processing zones into special zones in a deliberate move aimed at encouraging more investment as well as retaining existing investment in the country.

If the plans go ahead, the country will be adopting a Chinese model for development by transforming the Export Processing Zones into Special Economic Zones (SEZ’s).

Under the programme, the area along the railway line and the main Nairobi-Mombasa highway will be transformed into the Athi Basin Industrial Corridor.

Trade assistant minister, Omingo Magara said the move will reduce the ‘prohibitive’ cost of doing business.

“Two major flower farms have relocated to Ethiopia due to high cost of doing business in the country,” he said.

The government says it intends to increase the volume of water reserves through long-term measures, including the building of eight dams.

at a cost of Sh60 billion.The sub sector has recorded very high growth in volume and value of cut flowers exported over the years. Remarkable growth is attributed to massive investments by both local and overseas investors, aggressive marketing by growers and availability of air freight.

Kenya is a lead supplier to the European Union, contributing over 35 per cent of all flower sales. Export volumes has grown from 14,000 tonnes in 1990 to 93,000 tonnes exported in 2008 an increase of about 700 per cent over the period.

The value of flower exports in 2008 stood at Sh40 billion.