Horticulture export revenue decreased by 5% to Ksh8.8 billion in September from August’s level of Ksh9.3 billion, according to data from the Central Bank of Kenya (CBK).
The weaker Euro and Sterling pound caused Kenya’s earnings from flower, fruit, and vegetable exports to drop to their greatest level in more than two years in September.
Since September 2020, when Kenya earned Ksh8.5 billion from exports of horticulture, it has had the lowest return from exports of the three commodities.
Despite a rise in the volume of exports, this is the fourth month in a row that revenues from fruits, vegetables, and flowers have decreased.
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While earnings fell by 5%, exports increased by 5.5 percent to 41,592 metric tons, up from 39,406 metric tonnes in August.
Fruit export revenues decreased from Ksh3.6 billion to Ksh3.2 billion as the number of fruits sent fell to 15,489 metric tonnes from 16,173 metric tonnes.
The number of cut flowers exported increased to 8,881 metric tonnes from 8,618 metric tonnes, and the associated revenue increased to Sh3.7 billion from Sh3.5 billion.
Fresh vegetables were the most negatively impacted export, with a volume increase to 17,222 metric tonnes from 14,616 metric tonnes but a decrease in revenue to Ksh1.9 billion from Ksh2.1 billion.
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The decline was mostly caused by a substantial decline in the value of the pound and the euro relative to the Kenyan shilling, which affected exporters’ profits.
However, the value of the two currencies has begun to rise steadily, boosting exporters’ earnings from exports to the European market.
Fresh vegetable demand has increased recently along with consumer demand for organic goods, which has boosted Kenyan vegetable exports to the international market in addition to more traditional exports like coffee, tea, and flowers.
Tomatoes, onions, carrots, French beans, cauliflower, and fresh peas are among Kenya’s top exports of fresh vegetables. The UK and other member states of the European Union (EU), including the Netherlands, Germany, and France, get the majority of the exported cut flowers, fruits, and vegetables.
The government, which depends on export revenue for foreign exchange at a time when Kenya’s trade deficit is quickly expanding and increasing demand for foreign currency, is blown by the decline in horticulture export profits.
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