CONTACTS: +254 726879488 (Mobile)
+254770 455 116 (Office)
Get real time updates directly on you device, subscribe now.
By Steve UMIDHA
Kenya’s horticulture sector remains one of the key players in the country’s economy, offering a diverse range of fruits and vegetables to global markets.
Yet, the sector is still grappled with several challenges that threaten its growth potential, unpredictable tax policies, high cost of production, price discovery mechanisms as well as wobbly investment atmosphere.
These were some of the issues raised during this year’s 8th Edition of the Agro-Food Pack Exhibition in Nairobi, with leaders calling for urgent reforms if the sector is to live up to its potential.
“A lot needs to be done including taxes reforms, and I mean predictable tax policies not only in the sector but across board,” said Kenya Association of Manufacturers CEO Anthony Mwangi.
Indeed, Kenya’s horticultural sector experienced significant growth last year, driven by increased exports of vegetables, fruits, and cut flowers, according to data from the Central Bank of Kenya (CBK) in Nairobi.
In the first 10 months of 2023 alone, Kenya exported a total of 580,648 tonnes of horticultural produce, surpassing the previous year’s total export volume of 572,290 tonnes.
During this period, vegetable exports reached 245,194 tonnes, while fruit exports amounted to 224,643 tonnes, and cut flower exports totaled 110,811 tonnes. This marked a notable increase compared to 2022, when vegetable exports were 194,627 tonnes, fruit exports were 208,666 tonnes, and cut flower exports were 127,406 tonnes.
In the aftermath of the COVID-19 pandemic, emerging market and developing economies like Kenya continue to grapple with economic scarring, social tension, and reduced policy space.
Policy actions are already urgently needed to boost growth in the near term and support the ongoing green transition.
At the same time, high public debt and persistently high inflation have constrained policy space, posing difficult policy trade-offs.
The business leaders are now proposing a predictable framework for prioritization at the national government, packaging, and sequencing of macrostructural reforms to accelerate growth, alleviate policy trade-offs, and support the green transition in the country.
Dickson Sitei CEO of Kajiado Investment Authority for instance, noted that by prioritizing the removal of the most binding constraints on economic activity, bundling reforms (governance, business deregulation, and external sector reforms), and appropriate sequencing of other reforms (such as labor market and credit sector reforms) can help front-load reform gains.
Global inflation and uncertainty in demand have put pressure on prices, particularly affecting flower exports. Despite these challenges, industry experts remain optimistic about a potential 10 percent increase in horticultural exports for 2024.
Horticulture continues to be a vital contributor to Kenya’s economy, alongside other key sectors such as tourism and tea, underlining its importance as a foreign exchange earner for the country.
Get real time updates directly on you device, subscribe now.
Financial Fortune is a digital financial news website and print business magazine published in Nairobi by Fortune & Transit Publishers Ltd and covers the financial services sector through news, views and extensive people coverage since 2018.
Recover your password.
A password will be e-mailed to you.