COVID-19: Lack of freight holds back Kenya's flower industry

Kenya's flower industry is facing significant challenges as it grapples with the impact of the COVID-19 pandemic. The lack of available freight capacity is hindering the industry's ability to meet the growing demand for cut flowers in the international market. According to a report by the Kenya Flower Council, export demands have surged to 3,500 tons per week, highlighting a promising uptick in demand. However, the current freight capacity is only at 1,300 tons for all commodities, including flowers, vegetables, and fish. This disparity in capacity is posing a major hurdle for Kenyan flower exporters. Alex Owiti, a Communication Consultant for the Horticulture Industry in East Africa, shed light on the challenges faced by the industry during a recent interview with CNBC Africa. Owiti emphasized that before the COVID-19 outbreak, Kenya was able to export nearly 5,000 tons of flowers weekly. However, the current situation has seen this figure decrease to approximately 3,500 tons due to limitations in available freight capacity. With only two regional freight airlines in operation, each capable of transporting up to 40 tons, Kenya's capacity falls short compared to competitors like Ethiopian Airlines, which can transport up to 110 tons. The insufficient capacity of the existing freight airlines is further exacerbated by their limited capability for long-haul journeys. The interview highlighted the potential solution of Kenya Airways shifting its focus to cargo flights. While this shift could offer some relief, the current fleet's capacity limitations remain a challenge. Kenya Airways currently operates two cargo flights with a capacity of up to 40 tons each, along with Dreamliner flights converted for cargo use with capacities under 20 tons. Owiti expressed doubt about the feasibility of Kenya Airways bringing in additional freighters, citing financial constraints. When discussing potential government support for exporters, Owiti pointed out that high freight charges were a significant concern for investors. The increased freight charges have tripled, making it financially burdensome for exporters to transport their goods. The lack of capacity to transport the increasing demand further compounds the challenges faced by exporters. Owiti stressed that a reduction in freight charges could alleviate some of the financial strain on exporters and facilitate business operations. In addition to the freight challenges, exporters are grappling with other obstacles, including limitations in production capacity. The inclement weather conditions, marked by heavy rains and floods, have disrupted transportation from farms and affected the quality of produce. The financial hardships exacerbated by delayed VAT refunds and the overall economic impact of COVID-19 have added to the industry's woes. The COVID-19 pandemic has also led to a shift in consumer demand towards essential goods, impacting the flower industry. The decline in flower prices, with the value of a stem dropping significantly, has underscored the shift towards essential items like fresh foods and vegetables. The combination of challenges faced by the industry has created a complex operating environment, requiring strategic solutions and support to navigate the unprecedented circumstances.