Competing Kenyan horticultural associations to merge

The rivalry between Kenya's horticultural associations is set to come to an end following plans to merge the Fresh Produce Exporters Association of Kenya (FPEAK) and the Kenya Flower Council. The merger is expected to come into effect early next month.

The two bodies have for years been locked up in intense competition, leading to fragmentation of the sector which now faces several challenges in the world market. Stringent standards from an increasingly environmentally-aware consumer Europe with regard to agronomic practices, sanitation, labour practices and the current carbon miles threat of air freighted products are some of the challenges.

The merger, players in the industry say, will help the two address these challenges under one roof and abolish the duplication of roles that have significantly impeded the growth of the sector. Under the newly established umbrella body, to be named the Kenya Horticultural Council, two units will be created to cater for the domestic market, which is fast growing, while another will cater for international consumers.

Though the sector earned the country US$ 710 million in 2006 and recorded a growth rate of 14 percent, much more has to be done to increase market accessibility to the European Union and to emerging markets.

The move, officials say, will make the industry more vibrant by consolidating the roles played by the two groups and increase efficiency and competitiveness in the sector which employs about 4 million people in the rural areas. One of the challenges facing the umbrella body would be to lobby the government to establish a competent structured authority that would act as a one-stop-shop for all levies and as a certification centre.

Exporters of cut flower and horticulture currently have to transport their commodities to different institutions for certification and payment of various levies, making the process tedious. “Duplication of issues and multiplicity of levies in the sector has hampered the growth of the industry by reducing competitiveness, said Dr Stephen Mbithi, FPEAK chief executive officer.

Mbithi decries the high number of levies exporters have to pay and called on the government to pass the finance bill that seeks to abolish some of the levies. For instance, he noted with concern that there are 65 levies a horticultural exporter has to pay before exporting their produce.

He, however, hailed the recent plans by Kenya Plant Health Inspectorate Services (KEPHIS) to decentralize certification and inspection centres to ease the process exporters undergo.

East African Business Week