Kenyas earnings from the United States horticulture market is set to rise to Sh10billion on direct Nairobi to New York flight scheduled to start in October.

Kenya Flower Council chief executive Clement Tulezi said in an interview that the country is currently earning less than a billion from the US market.

Earnings from the Horticulture sector hit Sh115 billion last year from Sh101 billion announced in 2016. Companies licensed to export the flowers also increased to 386 from 356 in 2016.

The total export volumes increased by 26,303 tons to159,961 tons in the said period while the value rose to 82.25 billion from 70.8 billion.

“We also expect that the direct flights would increase our Share of the US market from the current 0.4 per cent to 10 per cent,” Tulezi said.

Outgoing head of the horticulture directorate Zakayo Magara said in a separate interview that the flight will open up the flower sector to a market of over 1 billion people.

FLOWER EXPO

In the forthcoming seventh edition of the International Flower Trade Expo planned to kick off on Wednesday in Nairobi, atleast 10 US firms will be present as buyers.

Speaking to the Star, IFTEX chief executive Dick Van said the US firms will be scouting for deals ahead of the Nairobi-New York flights. He said the flights will cut the long process of getting the flowers to US via Amsterdam.

Over 90 per cent of all flowers grown in the country will be exhibited at the trade fair.

While Kenya has remained a dominant player of flower exports Tulezi noted that they are currently facing competition from markets such as Rwanda,Uganda, Zimbabwe and Ethiopia.

He said that the view of Kenya as a middle income economy is bringing up new challenges as the country no longer enjoy trade benefits like low taxes on exports as compared to markets such as Rwanda which is considered a low income economy.

To stay ahead of the curve, the council is calling for tax relief and government incentives on selected segments of the sector.

NEW MARKETS

Currently about 38 per cent of all cut flower imports into the European Union comes from Kenya. The main markets are Holland, United Kingdom, Germany, France, and Switzerland.

The council said that there are ongoing plans to expand into the Asian markets of India, Malaysia and Hong Kong.

Also, as part of staying ahead of the game, the council said that they are continuously adopting self regulation by introduction of new Standards.

In February, the Kenya Horticulture Council adopted the KS1758 standard for flowers and ornamentals as a an additional quality control measure.

The standards require growers, propagators, breeders, consolidators, shippers, and cargo handlers to observe hygienic and safety requirements during the production, handling, and marketing of flowers and ornamentals.

Source: The Star

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