Browsing: Kenya Flower Council (KFC)

Sunflower (Harris Seeds)- The Exchange

Kenya’s exporters of fresh produce are expected to begin paying at least four times the Agricultural Produce Cess effective 1st January 2021.

In a letter, sent on 30th December last year by the Horticultural Crops Directorate (HCD) to the industry directs all exporters of horticultural products to pay from 1st January 2021 Agricultural Produce Cess based on the free on board (f.o.b) value and not the quantity in line with the new Horticulture (Crops) Regulations.

But the Kenya Flower Council (KFC) is calling on the government to weigh the benefit against the costs of this new regulation that has already been implemented.

According to the KFC Chief Executive Officer Mr Clement Tulezi, this poses a big threat to the recovery of the country’s flower sector.

Also Read: Why over 7000 Kenyan Flower farmers are getting funded

“Hope for quick recovery of Kenya’s flower industry will diminish as government arbitrarily increases …

Selected flower farms are expected to receive a total of Sh8 million ($74,000) aid following a joint project by Civil Society Organisations under Hivos East Africa’s Women@Work Campaign and the Kenya Flower Council (KFC).

According to a statement from KFC, the farmers received food packages and mobile money transfers worth $74,000 in selected flower farms.

“A total of 7,500 workers in the flower sector are set to receive the rations as a relief measure due to disruption of income as a result of COVID-19 pandemic. Hundreds of permanent workers were sent home on paid and unpaid leave during the month of March and April, while seasonal workers have been rendered jobless. Although most flower farms, in recent weeks, have recalled their workers as exports to various markets continue to pick up, many are still at home and unemployed. The flower sub-sector employs over 200, 000 workers employed directly on the …

The grasp of the Coronavirus has been unrelenting; like the grim reaper, it continues its deadly march around the economies of the world, sucking the soul of one sector after another, leaving a trail of death and destruction.  

The flower industry has not been left unscathed, being one of the hardest hit sectors. Plummeting revenues have been the plight of flower farmers, who have been disposing of blooms meant for export that have been wilting by the day. Covid-19 has upended the flower industry and crushed consumer demand in the international market, incurring a net-loss of well over Ksh.8 billion (US$74.7 million) in just a month, with daily losses reported to be amounting to Ksh.20 million (US$187.0 thousand). Direct sale orders have plunged to below 35%, placing the livelihoods of both the 150,000 direct dependents and across the value chain, to the over four million, who indirectly

The country’s horticulture industry – its third-largest foreign exchange earner is on its knees.

The sector which garners around $1.15 billion annually – is suffering from lockdowns caused by the coronavirus in its main markets in Europe.

According to the Kenya Flower Council Chief Executive Officer Mr Clement Tulezi, sales of cut flowers in overseas markets has been below 35 per cent in the past Month.

“In the last one week, we have started to see a slight steady recovery in the international market. Demand is beginning to grow – a sign that the flower industry could get back on track.” He said.

This improvement however now poses a new challenge. The available freight capacity cannot accommodate the rise in volume demand.

“Prior to the outbreak the capacity available per week approximately 5000 tons. Today, the capacity stands at 1300 tons for all commodities – flowers, fish, vegetables etc. Yet, …