Fresh produce exporters in Kenya are staring at higher costs and delayed market access as retailers in the European Union (EU) step up bans on air freight to cut their carbon emissions.
Several giant retailers in the EU bloc, including Lidl have cut back on air freight to source stocks such as fresh fruit and vegetables for their stores—a measure aimed at reducing the carbon emissions associated with the transport of fresh produce.
Okisegere Ojepat, chief executive at the Fresh Produce Consortium (FPC) on Monday said exporters are, however, struggling to meet the tighter checks due to a lack of locomotives to transport their goods through the standard gauge railway.
“We are not ready to meet this requirement at the moment. First, we do not have ready aggregation centres and there are no locomotives equipped with the requisite cold storage to transport our produce to the port for sea export,” he said.
This comes at a time when the Kenya Railways Corporation is financially struggling with official records showing its losses stood at Sh33.56 billion in the fiscal year ended June 2023—ranking it as the highest loss-making parastatal.
The shift to sea exports deals a blow to fresh produce exporters who rely on air transport to quickly reach the market.
According to a 2021 study by the Fresh Produce Exporters Association of Kenya, some 98 percent of Kenya’s fresh produce is shipped by air.
“It is critical for Kenya Railways to get enough financial support to help them purchase enough locomotives that are equipped to transport fresh produce. The government should also expedite the creation of centres to aggregate produce,” said Mr Ojepat.
Major European retailers, which buy the largest share of Kenya’s fresh produce, have started to restrict the transportation of the produce by air in favour of sea.
In 2022, the UK’s largest food services company, Compass Group UK & Ireland, banned the use of air freight to transport fresh fruits and vegetables as part of its efforts to cut its carbon footprint by 2030.
Other retailers from major importers of Kenya’s fresh produce such as the Netherlands have also put in place similar restrictions with other retailers expected to follow suit amid the rising pressure on firms to cut their carbon footprint.
Mr Ojepat said the State should accelerate the establishment of aggregation centres that are accessible to the SGR to allow quick rail access to the Mombasa port for shipping.
“With the establishment of aggregation centres, farmers from regions such as western, Nyanza, and central will consolidate their produce on the meter gauge railway before connecting to the SGR.”
Fresh produce such as cut flowers, fruits, and vegetables are a major source of foreign exchange for Kenya, generating Sh152.3 billion in earnings in 2022.
