Export earnings from fruits have overtaken those from coffee for the first time, official data shows, reflecting growing demand for Kenya’s avocado in traditional markets within the 27-member European Union and the United Kingdom.
Fresh data obtained from the Kenya Revenue Authority show earnings from exports of fruits amounted to $157 million (about Sh20.41 billion under prevailing conversion rate) in the half-year period ended June 2024.
The provisional data, collated by the Central Bank of Kenya, shows the value of fruit exports grew by nearly a fifth (18.94 percent) in the review period from $132 million (about Sh17.16 billion) a year ago.
Income from sales of fruits abroad has now surpassed coffee whose income was $148 million in the January-June 2024 period compared with a year ago.
The Agriculture and Food Authority did not immediately offer an official response to our questions on drivers of growth of fruit exports amid struggles in the coffee sub-sector.
A senior official within AFA, who is not authorised to speak to the press, however, said the growth in earnings for fruits is majorly being driven by rising demand for avocado in European countries such as Netherlands, Germany, and Belgium as well as the UK.
“Avocados are the primary reason we are seeing growth in fruit exports. Of course, there are emerging markets like China, but our biggest consumer and driver of sales so far this year remains Europe. What is driving the growth for avocado is the EU market and the UK,” the AFA official told the Business Daily.
The largely small-scale farmers-driven avocado farming has in recent years catapulted Kenya to amongst the top five producers, behind leaders such as Mexico, Colombia, and Peru.
Analysts see avocado exports becoming a key contributor to Kenya’s foreign exchange, citing growing global demand for the fruit whose popularity is rising by the day.
Okisegere Ojepat, chief executive of Fresh Produce Consortium of Kenya, says emerging Middle East and Far East markets have considerable potential to drive sales of avocado going forward in addition to the EU and the UK.
“Kenyans in the last five years have really planted more avocado fruits and the demand across the world is increasing, and so we’re going to see a sustained growth in exports despite the logistical challenges because of insecurity around the Red Sea,” Mr Ojepat said on phone.
“If all factors are held constant, we are going to see annual growth of between 12 to 15 percent in avocado exports, and we may start to report double-digit profitability. We are in the tropics and our fruit is preferred in terms of unique taste despite competition. There are many people looking at Kenya as their source of the fruit.”
Returns from the fruit, informally referred to as Kenya’s green gold mine in some quarters, are now threatening to overtake coffee going forward despite the latter being a priority for the Ruto administration.
Sales at Nairobi Coffee Exchange and exports are declining despite reforms led by Deputy President Rigathi Gachagua. Billions of shillings have been pumped into the reforms, including a Sh2 billion budget for the current year ending June 2025.
Part of the reforms has seen farmers sell cherries through Capital Markets Authority-regulated brokers and payment cleared through a Direct settlement System run by the Co-operative Bank of Kenya in a bid to enhance transparency and accountability.
The data, nonetheless, shows that earnings from the export of Kenya’s coffee to key markets such as the US, EU bloc, and Republic of Korea cumulatively dipped in the half-year period.
Coffee earnings for the January-June period fell 11.38 percent from $167 million (Sh21.71 billion) a year earlier, according to the provisional trade data, falling behind fruits.
“The success of the industry hinges on adherence to quality standards and inclusive policies,” Dr George Njenga, director of Strathmore Research and Consultancy Company wrote in an article in the Business Daily in February.
“The efforts by both government and private sector initiatives are crucial in ensuring that Kenya’s avocados remain a sought-after commodity in the international market.”
