Kenya's horticultural sector, the largest exporter of cut flowers to Europe, has felt only a slight impact of the post-election violence that has killed 500 people, a leading industry official said on January 9. The sector, which has only taken root in Kenya in the last decade, earned the country $709 million in 2006, making it the second highest earner after tourism.
"We certainly are not one of the sectors seriously hit by the unrest," said Stephen Mbithi, chief executive of the Fresh Produce Exporters Association of Kenya (FPEAK). "The major production areas for horticulture were not affected. Not a single horticultural farm was attacked."
Riots and ethnic clashes erupted in east Africa's biggest economy after President Mwai Kibaki's disputed polls win. They have mainly centred on areas around Eldoret and Kericho in the Rift Valley, Nairobi's slums, Mombasa on the coast and Kisumu in the western region of Nyanza.
Two growers in Eldoret were unable to truck their produce for two days because of the unrest, resulting in a $274,900 loss, Mbithi said. But he said the town accounted for less than 5 percent of Kenya's overall production."If we add all the knock-on effects and in a worst case scenario, if this thing continues for a few days in the same pattern, then we anticipate to have a loss but not beyond 2 billion shillings ($30 million)," Mbithi said.
The industry, which also produces vegetables and fruit, brought in a total $750 million in 2006. Mbithi said he expected earnings for 2007 would be around the same level."It was a good year," he said, adding an earnings forecast of between $750 million to $920 million in 2008 depending on the weather.
"We don't see any reason why it should go down. Our biggest worry was the economic partnership agreements (EPAs) but that's out of the way now," he said, referring to new trade deals between African producers and the European Union. Kenya signed an interim pact with the EU in November before the expiry of a preferential trade deal that would have seen tariffs slapped on exports to the bloc.
