Recent data released by the Central Bank of Kenya (CBK) highlights a remarkable uptick in Kenya’s horticultural exports for July, breaking the 29-month record, owing to a surge in demand from international markets.
The figures reveal that July witnessed the export of 65,172 tonnes of horticultural produce, indicating a substantial 19.3 percent rise compared to the 54,604 tonnes exported in June. This achievement represents the most significant export volume of fresh fruits, vegetables, and cut flowers since February 2021 when the industry recorded sales of 71,685 tonnes.
Among the horticultural categories, fresh vegetables took the lead, accounting for 28,259 tonnes, followed closely by fresh fruits at 27,339 tonnes and cut flowers at 9,574 tonnes. Avocados emerged as Kenya’s primary fruit export, followed by pineapples, mangoes, raspberries, passion fruits, and lemons. The notable export vegetables included chillies, basil, peppermint, fine beans, mixed vegetables, snap peas, and herbs.
Notably, over 65 percent of Kenya’s cut flowers are exported to the Netherlands, while the remainder is sold directly to wholesalers, supermarkets, and grocers. The surge in export volumes, combined with a weaker local currency, resulted in a 3.8 percent increase in earnings, totaling Sh12.5 billion – the highest since March 2021 when exporters earned Sh13.5 billion.
Horticulture stands as one of Kenya’s primary sources of export revenue, generating Sh152.3 billion in earnings in 2022. Other significant contributors to Kenya’s export earnings include tea and coffee. These exports play a crucial role in bolstering the country’s foreign currency reserves, particularly the US dollar, at a time when foreign exchange reserves are dwindling, with remittances from the diaspora being the largest source.
The resurgence in demand, especially from European markets, is expected to revitalize the horticultural sector’s earnings, which experienced a decline in the previous year. According to the Economic Survey 2023 released by the Kenya National Bureau of Statistics (KNBS), the value of horticultural exports decreased from Sh157.7 billion in 2021 to Sh146.1 billion in 2022, primarily due to reduced demand for cut flowers and vegetables in the international market during the review year, as explained by KNBS.