Market Trends of Kenya Floriculture Industry
Rising Export Potential of Floral Products
- The floriculture industry in Kenya is well-developed. The country's favorable conditions, including fertile soils and ample sunlight, make it a strategic hub for exporting high-quality flowers to Europe, the Middle East, and Asia. Similarly, the well-established support service sector, global distribution capabilities from Mombasa, and a willingness to adopt innovations and technologies have positioned the Kenyan floriculture industry for success and growth. Kenyan flowers are exported to over 60 nations, with popular flowers, being roses, carnations, lilies, leaf cuttings, and decorative plants, are primarily. In Kenya, most of the floriculture products are produced to meet the needs of exports.
- Additionally, Kenya is one of the major exporters of cut flowers worldwide. This sector in Kenya represents the third-largest foreign exchange earner. Additionally, the country sells 70 percent of its flowers to European countries. The country also supplies more than 35 percent of the fresh-cut roses and other flowers to the European Union. The main export markets include the Netherlands, followed by the UAE, United Kingdom, Kazakhstan, Saudi Arabia, Germany, and Norway, with an export share of 39.2%, 15.0%, 15.2%, 7.9%, 6.4%, 4.5% and 3.9%, respectively. Similar to this, approximately half of all exported flowers from Kenya are being sold in Dutch auctions.
- Moreover, In 2022, the SEA Initiative was launched to facilitate the export of high-quality flowers from Kenya to Europe using sea freight. This method provides significant carrying capacity, leading to cost savings and a reduced carbon footprint compared to air freight, thus benefiting the export market. Roses have the potential for expansion, owing to reasons such as large production acreage, stable production throughout the year, and the fact that cultivators have a high standard of SOP for producing high-quality, along with high demand from international markets. For instance, the export value of cut roses increased from USD 460,467 thousand in 2022 to USD 470,117 thousand in 2023. Therefore, the rising production coupled with the favourable export capabilities are driving the exports of flowers thereby driving the market growth during the forecast period.
Increasing Support from Government and Public Sectors
The flower industry is well developed in Kenya, with farmers using the latest technologies such as greenhouse technology, micro irrigation systems, etc., which will benefit production. Along with this, there are about 220 flower farms in Kenya, about 70 of which are located near Lake Naivasha. Thus, the floriculture industry earns a good amount of foreign exchange. So, the Kenyan Ministry of Agriculture is focusing on driving the adoption of floriculture through various policies, regulations, and operational directions. The government along with the private sectors are providing credit facilities to support the huge amount in cultivation, along with favourable policies to increase production. For instance, in December 2022 the credit offered by private sector banks to agriculture was 119.1 billion KSH (USD 900 million) which grew to 145.9 billion KSH (USD 1,100 million) in December 2023, according to the Central Bank of Kenya. This attracts foreign investments, which increase production and thereby increase the exports of floriculture products.
In addition, the government of Kenya is prioritizing the creation of smallholder farmers' aggregation and logistics facilities and investment in their market infrastructure. Similar to this, the government is focused on increasing trade relationships to support the exports thereby aiding the sector growth in the coming days. For instance, in 2022, Kenya, as a part of its efforts to diversify exports, established a direct link between farmers and the United Arab Emirates and the other five Gulf Cooperation Council (GCC) member countries by removing tariffs and logistics constraints.
Furthermore, the market is implementing advanced technologies and infrastructures for floriculture. In Kenya, the different ministries favouring floriculture are Water and Irrigation, Health, Environment, and Natural Resources, Local Government, Cooperative Development and Marketing, Trade, and Regional Development Authorities. The other public sectors such as the Kenya Flower Council (KFC) play a vital role in promoting and maintaining the reputation of Kenya's flowers both locally and internationally. The development, and implementation of certification programs such as Fairtrade, KS:1758, Kenya Flower Council's Flowers and Ornamental Sustainability Standard (F.O.S.S), also known as KFC Silver, and Rainforest Alliance, are becoming essential for empowering customers and promoting sustainable floriculture. Therefore, the initiatives from the government, along with the favourable credit facilities from the private sector, are contributing to the market's growth.
