By VICTOR PRINCE
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has been urged to address persistent trade and logistics challenges that continue to undermine the competitiveness of Kenya’s flower and avocado exports.
The CS toured Mount Elgon Orchards Ltd, where he met with the farm’s management, including its Chairman Kiprono Kittony, to discuss some of the key challenges facing agricultural exporters.
Among the issues brought to the attention of the Cabinet Secretary was the high cost of airfreight, which remains a major concern for Kenya’s horticultural exporters, particularly those dealing in highly perishable produce.
The cost of transporting fresh flowers and other horticultural products by air can significantly affect the final price of Kenyan produce in international markets, making it harder for exporters to compete with producers from other countries.
Kittony, who also serves as Chairman of Kenya Airways, is pursuing practical solutions aimed at addressing the high cost of airfreight and improving the efficiency and competitiveness of Kenya’s agricultural export logistics.
Regulatory burden remains a concern
The meeting also highlighted the growing regulatory burden on agricultural businesses, with exporters raising concerns over the proliferation of permits, licences and regulatory requirements.
While regulation is important for maintaining standards and protecting consumers, excessive and overlapping requirements can increase the cost of doing business and create disincentives for investment in the horticulture sector.
The industry is therefore calling for a more streamlined regulatory environment that allows farmers and exporters to focus on production, value addition and accessing international markets.
VAT refunds and market access
Another major issue raised during the engagement was the delay in VAT refunds, which continues to put pressure on the cash flow of businesses operating in the export sector.
For exporters, timely VAT refunds are particularly important because of the capital-intensive nature of farming, packing, cold-chain management and international logistics.
The meeting also drew attention to high tariffs imposed on Kenyan avocados entering the Indian market, a barrier that limits the competitiveness of Kenyan fruit in one of the country’s potential export destinations.
Addressing such market-access barriers will be critical if Kenya is to expand its horticultural exports and secure better returns for farmers.
A call for practical solutions
The engagement comes at a time when Kenya is seeking to strengthen its agricultural exports and increase the contribution of horticulture to the national economy.
The flower and avocado industries have significant potential to generate foreign exchange, create employment and support thousands of farmers and workers across the country. However, industry players say this potential can only be fully realised if the cost of production, compliance, logistics and access to international markets are addressed.
The discussions at Mount Elgon Orchards provided an opportunity for the industry to present some of these challenges directly to the government and seek practical interventions.
Mount Elgon Orchards said it appreciated CS Kagwe’s engagement and commitment to finding solutions that can strengthen Kenya’s agricultural exports and improve the benefits accruing to farmers.
The company described the visit as an important step towards closer collaboration between government and the private sector in addressing the challenges facing Kenya’s horticultural industry.
For the sector, the expectation is now that the issues raised will translate into concrete policy and administrative action, particularly on airfreight costs, regulatory requirements, VAT refunds and access to overseas markets.
As Kenya positions itself for greater participation in global horticultural trade, resolving these barriers could play an important role in making the country’s flowers and avocados more competitive while improving opportunities and returns for farmers.