Corporate News
Piracy knocks fresh produce exports
A worker at Oserian Flower Farm in Naivasha grades roses that are later exported to Europe. Rampant piracy in the Gulf of Aden has nearly doubled the cost of exporting Kenya’s fresh produce pulling the country’s growers into the long drawn campaign to rid the key Indian Ocean route of Somali fighters.
Posted Monday, January 25 2010 at 19:33
If the insurers declare the troubled gulf a war zone, any attacks on vessels will be deemed as an act of war that is not insurable under most insurance rules, meaning most vessels will either pull from the route or connect the region with the rest of the world through the long routes.
“The half hearted response to piracy in the region is based on the perception that it only targets international vessels where the truth is that our goods get caught in the middle and our producers – usually the source poor small scale farmers contribute the ransom through increased charges,” said Dr Mbithi.
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