This archive report was first published on 29 June 2020.
As the world grapples with the COVID-19 pandemic, Kenya's horticulture industry is facing an unprecedented crisis. According to a report by Scope Markets Kenya, the industry is incurring losses of Sh100 million daily, a significant improvement from the Sh350 million daily losses in April and May.
European countries, which are a major market for Kenyan horticulture exports, have begun to ease restrictions, leading to a slight reduction in losses to around $1 million daily. However, the outlook remains bleak throughout the summer months.
Kenyan farms have drastically reduced export volumes to 50%, with a significant number suspending exports altogether. If the current situation does not improve soon, companies are facing downsizing or closure, which will result in increased poverty, insecurity, and hunger.
Exports of flowers, vegetables, herbs, and fruits, which account for over 80% of horticulture exports, were severely impacted in March when European capitals went into lockdown, suspending international flights.
Scope Markets Kenya reviewed the movement of key currencies, stocks, and commodities during the pandemic and its impact on world economies, financial markets, and people. The report highlighted several factors contributing to the industry's struggles, including a second wave of infections, uncertainty around the reopening of air travel, and warnings of a global recession.
Kenya has received Sh100 billion in budgetary support from the World Bank to help the government sustain key projects and support vulnerable citizens. The country's GDP is expected to contract to 1% due to the pandemic, a significant reversal from earlier projections of a 6% growth in 2020.
