中国云南农事达

Kenya’s flower export ranks third in the world

Nairobi, the capital of Kenya, has a fragrant name – Flower City under the Sunshine. This beautiful country ranks first in exporting flowers to Africa and third in the world.
For most people, what makes Kenya famous around the world is its tropical grassland scenery and a wide variety of wildlife
Animals and plants, as well as beautiful seaside scenery. But in fact, Kenya has another beautiful face: a country full of flowers. Today, Kenya is the number one flower exporting country in Africa and the third in the world. No wonder people give the capital Nairobi a fragrant name “Flower City under the Sunshine”.

Kenya’s flower cultivation has a history of over 30 years. Kenya has multiple plateaus with an average altitude of 1500 meters, abundant sunlight, and a mild climate. The highest temperature throughout the year is 22-26 ℃, making it particularly suitable for the growth of various flowers. In the past five years, Kenya’s floral industry has maintained a high-speed growth of 20% annually. In 2005, Kenya exported 88000 tons of fresh flowers and earned 300 million US dollars in foreign exchange. Currently, flowers in Kenya have occupied 31% of the European flower market.
60% of enterprises are foreign-funded
Isangata, former chairman of the Kenya Agricultural Products Export Association and now an investment consultant for the flower industry in Kenya, told reporters that due to the continuous increase in flower production costs in developed countries in the late 1990s, developed countries began to shift towards developing countries with abundant resources, suitable climate, low labor and land costs, thus driving a group of emerging flower producing countries. Kenya is one of them.
With its unique natural conditions and cultural connections with some European countries, Kenya has naturally become the preferred investment destination for European flower giants. He said that there are currently over 100 flower companies in Kenya, and due to the low domestic consumption level, their flower products are mainly used for export. Among these enterprises, 60% come from abroad, and flower industry giants from countries such as the Netherlands, the United Kingdom, Germany, and France have invested over 10 million US dollars in Kenya, occupying half of the country’s flower industry.
At least $420000 needs to be invested
Does Kenya’s flower industry often invest millions of dollars?
Mr. Isangata told reporters that investing in the flower industry in Kenya is not cost-effective. He introduced that establishing a small-scale flower enterprise would require approximately 30 million Kenshin shillings, equivalent to 420000 US dollars, while investing in enterprises mainly exporting roses would require four times the aforementioned amount of funds. He said that in the flower industry, small companies can also make big profits, and the key is to see whether they have sufficient understanding of the industry and can effectively save costs.
Large flower enterprises that have settled abroad occupy 55% of Kenya’s flower planting land, while the remaining 45% is scattered among farmers. In order to save costs, small and medium-sized companies usually provide suitable flower seeds for farmers in different regions at different times according to their needs, and provide certain training. Finally, they purchase flowers from small and medium-sized landowners, bundle and package them together.
Must understand the culture of the exporting country
It is necessary to understand the sales situation of flowers and the culture of the exporting country. The variety of fresh flowers exported from Kenya is diverse, but roses are still the most popular in the European market, accounting for 73% of the export volume, carnations are 5%, in addition to lilies, birds of paradise, and so on. Due to frequent fluctuations in flower prices, flower companies in Kenya typically have a detailed sales chart for the first two to three years, dividing a year into 52 weeks or even more, with sales for that week and average prices displayed on it.
From the table, June to September is the off-season for flower sales in Kenya every year. Mr. Isangata explained that because these months are summer in Europe, the local flower production in Europe can basically be self-sufficient. In addition, July is a vacation time for most European office workers, and the consumption of flowers is relatively low. Therefore, during this period, the demand for imports was not very high.
Expanding into the North American market
Mr. Isangata reminds investors to note that currently, Kenya’s export of flowers to Europe has zero tariffs. However, in order to cater to African flower growing countries such as Zimbabwe and Uganda, the European Union will impose certain taxes on flowers from Kenya starting from 2008.
The reporter learned from Naivasha, the main flower producing area in Kenya and 80 kilometers away from Nairobi, that Kenya is planning to expand into the North American flower market. Industry insiders believe that the United States will be another potential large market for Kenyan flowers. The cultivation of fresh flowers in Kenya relies entirely on manual operations, and flower companies also have the Kenyan awareness of protecting the environment and conserving natural resources. If the current trend continues, Kenya’s “green” industry has a promising future.
News extension: Kenyan flower farmers can speak English
As an investment advisor, Mr. Isangata highly praised the investment environment in Kenya.
He said, firstly, Kenya’s political situation is stable and there is no risk of investment failure due to local political turmoil; Secondly, Kenya has a superior geographical location and is a hub for goods in the entire East African region. It can radiate to neighboring countries such as Uganda, Tanzania, Congo, and Sudan. Kenya is also a member state of the Southeast African Economic Community and the East African Economic Community, with preferential tariffs or even tariff exemptions implemented among member states.
In addition, due to Kenya’s over 30 year history of flower cultivation, local flower farmers have accumulated considerable experience in flower cultivation, and most of them can speak English. Moreover, Kenya’s transportation infrastructure is relatively well-established among African countries, with the second largest deep-water port in Southeast Africa, ensuring smooth transportation channels.

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