Kenya’s horticulture earnings fall Sh12bn

Greenhouses at a large scale horticulture farm in Nyeri on March 18, 2019. PHOTO | JOSEPH KANYI | NMG

What you need to know:

  • The Directorate of Horticulture says Kenya earned Sh116.8 billion between January and October, down from Sh128.8 billion last year.
  • The drop marks the steepest decline in earnings for the horticulture industry in the last couple of years.
  • According to the regulator, avocado accounted for the bulk of the produce that was intercepted as traders exported immature fruits.

Horticulture earnings dropped by Sh12 billion in 10 months to October, attributed to lower quality produce that attracted reduced prices at the global market amid competition from Latin countries.

The Directorate of Horticulture says Kenya earned Sh116.8 billion between January and October, down from Sh128.8 billion last year.

The growth in volumes, which was 16 percent higher in the review period was not enough to offset the decline in value as Kenya’s produce was low priced when compared to those from Mexico and Peru.,

The drop marks the steepest decline in earnings for the horticulture industry in the last couple of years, raising concerns over quality standards, especially in the avocado sector where some farmers have been harvesting immature fruit.

“The decline can be attributed to quality and high competition from Mexico and Peru,” said the directorate.

The trend on dipping earnings were also witnessed in June where income from the produce declined by Sh6 billion with the directorate blaming the drop on low-quality avocado that were exported to the international market.

According to the regulator, avocado accounted for the bulk of the produce that was intercepted as traders exported immature fruits, which impacted negatively on the earnings.

The directorate last week said it was banning export of avocado from November 16 to curb the export of immature fruits.

In the review period, the value of fruits dropped to Sh16 billion from Sh17 billion previously with flowers recording a 15 percent decline to Sh78 billion.

The earnings from the vegetables increased to Sh22 billion from Sh19 billion previously.

The European Union still accounts for the largest portion of Kenyan horticultural exports, taking in 45 percent of the exports majorly comprising cut flowers, French beans, snow peas and Asian vegetables.

The leading export destinations are Netherlands, United Kingdom, Germany, Austria, Italy, France, Belgium, Middle East and the Far East.

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