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Kenya: Sector Braves Crisis to Post Growth

The horticulture industry expects record returns this year following higher export volumes and better value in the first quarter of the year, compared to last year.

The results for the first quarter are all the more impressive considering the sector suffered from the post election violence in which many workers were displaced from the regional hub of Naivasha.

The flower farms in the area were forced to house employees within the plantations to ensure production continued. That effort appears now to have paid off in a big way.

High value

Results on the first quarter released on Tuesday by Kenya Horticulture Development Program showed a 50 per cent rise in export value while volumes increased by 30 per cent.

Miraa shipments, mainly to Somalia and United Kingdom, outperformed last year's first quarter exports by Sh2.2 billion.

The proportion of high value vegetable packs of over Sh200 per kilogram relative to low value products of under Sh80 per kilogramme went up from 55 per cent to 89 per cent of total fresh vegetable exports, reflecting a marked increase in quality.

KHDP attributed this to the fact that the customs department picks up some dry legumes under the same codes as fresh beans and peas.

Jane Ngige, the chief executive of the Kenya Flower Council, attributed the good performance to reliable rainfall and the support the industry got from communities around the flower farms during the political violence.

She however said the violence led to increased production costs, especially relating to workers' welfare. Data on the value of losses was however not available.

"The better performance despite first quarter difficulties shows that there is something the industry is doing right," she said.

Good relations with surrounding communities, guided by the industry's code of conduct is seen as having given the workers and the community a sense of ownership in the industry."

We were amazed at the extent the workers were ready to go to protect the industry during the violence. It's partly because of the way we treat them," she said.

The growth was also attributed to the global interest in Kenya's horticultural products of high quality and their efficient delivery.

The council said that in January it embarked on a communication exercise assuring the international market that the violence would not affect the delivery of the produce.

The KHDP data shows that sales of flower cuttings, the highest value floriculture product that sells for an average of Sh865 per kilogramme, increased more than those of cut flowers.



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