A representative from Kenya Flower Council confirmed to Fortune Magazine on Saturday, May 7, that dealers in floriculture are on track to surpass last year’s annual revenues of Ksh110.8 billion.
Without revealing the specific projected figure, the organisation’s Chief Executive Officer, Clement Tulezi, explained that the boost in revenue was influenced by a rise in demand.
He also explained that the flower market has been influenced by a rise in prices caused by an increase in production costs due to a shortage in fertiliser supply brought about by the war.
Tulezi further told the publication that the increase in revenues is expected to cushion local farmers from the impending fall of output.
Kenya is considered the largest producer of flowers with Valentines’ being the best season for farmers as they make 35 per cent of the total revenue while Mother’s Day weekend comes in second.
According to the Kenya National Bureau of Statistics (KNBS), the export of flowers and other assorted goods such as vegetables and fruits had seen a 5 per cent growth in 2021 as compared to 2020 even as the country recovers from the effects of Covid-19 pandemic.
With the growth, horticulture remains the biggest export earner for the country, having surpassed tea in 2018 and has been on an upward trajectory.
“During the review period, horticultural output – key among them the cut flowers – benefited from better export prices offered in the export market,†read a report by KNBS at the time.
An increase in revenue had also influenced the spike in flower production locally, a trajectory likely to be affected by the poor fertiliser supply.
When the Ukraine-Russia war started, Kenyans were cautioned to brace themselves for higher living costs due to increase oil costs.
It was also estimated that foreign investors would increasingly sell off their shares further battering an economy that has barely recovered from the pandemic.
Source: KENYAGIST.COM
