Kenyan Flower Industry Eyes New Markets Amid Rising Export Costs

Nairobi: Kenya’s flower industry is shifting focus to emerging global markets as growers grapple with rising freight charges, high input costs, and supply chain disruptions that threaten export growth of the delicate sector.

According to Kenya News Agency, the floriculture sector recorded export earnings of Sh81.3 billion in 2025, up from Sh72.1 billion in 2024, cementing its position as one of Kenya’s top foreign exchange earners. The Agriculture and Food Authority-Horticultural Crops Directorate (AFA-HCD) reported that Kenya exported 457,700 tonnes of horticultural produce valued at Sh143.78 billion in 2025. Cut flowers accounted for 62 percent of the total export value, followed by fruits at 19 percent, vegetables at 15 percent, and medicinal and aromatic plants at four percent.

AFA Acting Director General, Calistus Kundu, noted that export volumes rose from 102,500 tonnes in 2024 to 130,600 tonnes in 2025, with the Netherlands accounting for an average of 46 percent of Kenya’s flower exports over the two-year period. In a speech read on his behalf by Dorah Odundo of the Horticultural Crops Directorate during a press briefing in Nairobi ahead of next week’s International Flower Trade Exhibition (IFTEX) 2026, Kundu highlighted government policies aimed at strengthening the sector’s competitiveness.

Kundu elaborated on efforts such as enforcing quality standards, streamlining licensing and compliance procedures, supporting sustainability and traceability requirements, and expanding market access through trade engagements and international exhibitions. He emphasized the support for new growers entering the export market through capacity building, promotion of Good Agricultural Practices (GAPs), and strengthening linkages between growers, exporters, logistics providers, and international buyers. He encouraged participation in the International Flower Trade Expo (IFTEX) 2026, describing it as a key platform for trade, collaboration, and showcasing Kenya’s leadership in global floriculture.

Meanwhile, the Kenya Flower Council (KFC) has warned of possible export losses, job cuts, and farm closures due to escalating air freight charges and global supply chain disruptions. Lina Jamwa from KFC highlighted the sector’s current difficulties, driven by geopolitical tensions in the Middle East, rising fuel prices, and logistical challenges. She noted that air freight costs have increased from about Sh400 (USD 3.10) to nearly Sh650 (USD 5) per kilogramme, significantly raising export expenses for the highly perishable flower industry.

Jamwa revealed that nearly USD 4 million worth of flower exports are currently at risk every week, with fertilizer prices increasing by about 25 percent within a week. Some farms have recorded revenue losses of up to 75 percent due to shipment delays and perishability. The KFC also expressed concerns over over Sh10 billion in pending VAT refunds, warning that if the situation persists, export volumes could decline by up to 20 percent, with potential monthly losses exceeding USD 15 million and up to 50,000 jobs at risk.

Despite these challenges, Jamwa stated that Kenya remains globally competitive due to its favorable climate, advanced logistics systems, and strong sustainability standards. She noted that over 92 percent of member farms have adopted integrated pest management systems, over 85 percent use efficient irrigation technologies, and over 60 percent have embraced renewable energy solutions. The industry is urging the government to release pending VAT refunds, provide temporary tax relief on fertilizers and agricultural inputs, and review statutory levies to cushion growers from rising operational costs.

Dr. Isaac Macharia, Director of Phytosanitary and Biosecurity Services at the Kenya Plant Health Inspectorate Service (KEPHIS), mentioned strengthened compliance with global phytosanitary standards through automation and improved inspection systems. He explained the streamlined issuance of phytosanitary certificates and plant import permits via the Integrated Export-Import Certification System (iEICS) and the adoption of the IPPC e-Phyto Hub to reduce delays associated with paper-based documentation.

Dr. Macharia highlighted modernization efforts in Kenya’s central reference laboratories to support rapid pest detection and identification. He emphasized enhanced pest management and export compliance measures, including the Rose False Codling Moth Systems Approach, which improved compliance for rose exports to the EU, UK, and South Korea. He urged exhibitors at IFTEX 2026 to adhere to market requirements, emphasizing compliance as Kenya’s key competitive advantage.

IFTEX Chief Executive Officer Dick van Raamsdonk noted the exhibition’s growth, with the number of exhibitors rising from 189 last year to a record 210 this year, with nearly 20 percent being new growers. He described the exhibition as a key indicator of trends in the global flower trade, despite increasingly strict carbon emission regulations in Europe and rising global trade challenges.

Kenya’s floriculture industry aims to expand into emerging markets in North America, Southeast Asia, the Middle East, and Eastern Europe to reduce reliance on traditional European markets. The sector generated about Sh110 billion in export earnings in 2025, contributing approximately 1.5 percent to Kenya’s GDP, supporting more than 200,000 direct jobs, and sustaining over one million livelihoods across farming, logistics, and export value chains, with women accounting for more than 60 percent of the workforce.