The Kenyan Export Horticulture Industry

Horticulture is critical to Kenya’s food security and economy.  The horticulture industry is the fastest growing agriculture sector growing by 10% per year during the early 2000s. Exports of cut flowers, foliage, tropical fruits and fresh vegetables, primarily to the United Kingdom and other members of the European Union (EU), represent the second most important source of foreign earnings (after tourism). Exports include cut roses, pineapples, bananas, papayas, Asian vegetables, snow peas, and green beans. Trade with the EU has benefited from lack of tariffs, increasing demand, and sufficient northbound air cargo but has required strict adherence to quality, labor, environmental, and food safety standards.  Export horticulture employs over two million Kenyans. The horticulture industry faces many challenges. The Cotonou Agreement expired and negotiations for an Economic Partnership Agreement have been continuous especially over requirements for Kenya to provide duty-free access to its markets. Recent violence in Kenya has disrupted production and transportation. EU demand has fallen with the global economic recession. Future depend is expected to slow as EU populations and incomes plateau. Kenya is facing stiff competition in the EU market from the US, Israel, South Africa, Columbia, and Mexico.   Large exporters and growers are replacing the traditional smallholder operations that have supplied export markets. Single women without benefits now dominate the labor force, raising ethical issues. EUROPGAP requirements on traceability and process standards are placing new burdens on exporters and causing further barriers to smallholder participation. There has been a trend toward increased processing, packing and product variety further limiting smallholder opportunities. High fuel costs and European concern about food miles and global warming are challenging shipments via air cargo.  Airfreight can account for >40% of the cost of Kenyan export horticulture crops.  Will the Kenyan horticulture industry overcome these challenges and continue fostering economic growth?