BUSINESS

Kenyan Flower Exports Under Pressure as Freight Costs Rise

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Floriculture farmers arranging roses.
Floriculture farmers arranging roses.
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Kenya’s flower exporters are beginning to feel the full weight of a conflict happening thousands of kilometres away, as freight costs climb and shipments struggle to reach key markets on time.

New data from the Kenya Flower Council shows that air freight charges have jumped by nine per cent, rising to Ksh 545.6 per kilo from Ksh 493.6, following continued flight disruptions linked to tensions in the Middle East involving Iran, the United States and Israel.

The spike, though it may appear modest on paper, is proving costly for an industry that depends on speed and precision to deliver fresh flowers to global markets.

Exporters are now dealing with a double blow—higher transport costs and growing losses from delayed deliveries. The sector has already lost at least Ksh 623.5 million since the conflict escalated, with industry players warning that the situation could worsen if air routes remain unstable.

According to the organisation, the disruptions have interfered with global air cargo routes, forcing airlines to reroute or reduce flights, which in turn drives up costs and delays shipments.

“Of this, approximately 2.1 million dollars represent flowers that perished before reaching the market, while 2.7 million dollars reflect reduced prices resulting from delayed arrivals and compromised quality,” the council stated.

Fresh flowers are highly perishable, and even a few hours’ delay can mean the difference between premium prices and total losses. With flights either delayed, cancelled, or taking longer routes to avoid conflict zones, Kenyan exporters are finding it harder to maintain the strict timelines required by international buyers, especially in Europe and the Middle East.

Tulezi added that farms that rely heavily on Middle Eastern markets have been hit the hardest, with some reporting revenue drops of up to 75 per cent. He warned that if the situation drags on, weekly losses could exceed $1.3 million.

The Middle East plays a significant role in Kenya’s flower trade, not just as a destination market but also as a transit hub. Five Gulf countries account for about 13.35 per cent of Kenya’s flower export value, estimated at $722.9 million. Airlines based in the region are also critical in moving flowers quickly to Europe and Asia, meaning any disruption in that corridor has a ripple effect across the entire supply chain.

Flower exports during the pandemic

Similar disruptions were seen during the COVID-19 pandemic, when reduced passenger flights—often used to carry cargo—caused freight rates to surge. The current situation is raising fears of a repeat scenario, where limited cargo space pushes prices even higher.

Beyond logistics, exporters are also grappling with reduced earnings as buyers lower prices for flowers that arrive late or in poor condition.

This erodes profit margins and puts pressure on farms already dealing with rising input costs such as fertiliser, energy, and labour.

Kenya’s floriculture industry remains one of the country’s top foreign exchange earners, bringing in about $835 million in 2024 and supporting hundreds of thousands of jobs directly and indirectly—from farm workers in Naivasha to logistics handlers at Jomo Kenyatta International Airport.

With so much at stake, industry players are now calling for urgent interventions, including exploring alternative cargo routes, negotiating better freight rates, and increasing cargo capacity to cushion exporters from further losses.

For now, however, the sector remains exposed to forces beyond its control, as a distant conflict continues to shape the cost and fate of one of Kenya’s most valuable exports.

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