Nairobi, Kenya — The ongoing conflict in the Middle East is having a severe impact on Kenya’s floriculture sector, with weekly losses reported to exceed $1.4 million. The Central Bank of Kenya estimates the sector’s value at over $800 million, and its operations are being severely affected by reduced demand and shipping disruptions to key markets in the Middle East and Europe.
At Isinya Flower Farms, south of Nairobi, Marketing Manager Anantha Kumar described a dramatic reduction in exports, with a 50 percent decline noted. The Middle East, while not the primary market, still accounts for approximately 30 percent of Isinya’s exports. Europe, the main market, represents about 70 percent. However, freight costs have doubled due to the unavailability of cargo freights, making business operations increasingly challenging.
The Kenya Flowers Council, a private sector organization representing the industry, has reported over $4.2 million in losses over the past three weeks, largely due to market interruptions, shipping disruptions, and increased freight fees. Kenya Flowers Council CEO Clement Tulezi warned of the potential for further losses and job losses in an industry that employs up to half a million Kenyans directly. The council is actively lobbying the Kenyan government to introduce direct cargo flights to Europe to sustain the European market and mitigate the impact on growers.
Growers like Isinya Flower Farms are now facing the prospect of weekly losses of about $1.8 million if the current situation persists. The situation highlights the interconnectedness of global markets and the vulnerability of industries to geopolitical tensions.
Source: Africanews
