This archive report was first published on 25 August 2020.
Kenya's horticulture industry is facing a major setback after a Sh1.5 billion economic stimulus package announced by President Uhuru Kenyatta in May was delayed due to a tussle among government agencies over its allocation.
According to sources, the Ministry of Trade is pushing for Brand Kenya to get a share of the funds for marketing purposes, while the Ministry of Agriculture wants it to be allocated to the Kenya Agriculture Plant Health Inspectorate Service (Kephis).
Stakeholders in the horticulture industry had wanted the funds to be issued to Kenya Airways to address the high cost of freight, which has made the country's produce uncompetitive in the world market.
‘We want this money to be released as soon as possible to the national carrier to help address the high cost of freight,’ said Ojepati Okisegere, chief executive of the Fresh Produce Consortium.
Okisegere added that the government agencies eyeing the funds have direct budgetary allocation from the Treasury and can request funds without necessarily eyeing for a share of the stimulus package.
The cost of a kilo of cargo at the Jomo Kenyatta International Airport to Europe currently ranges from Sh500 on average, up from Sh200 at the same time last year.
As a result, Kenya's horticultural produce is increasingly becoming uncompetitive in the world market, largely due to the higher freight charges.
Stakeholders had argued that the total airfreight capacity deployment for Kenya at the moment is approximately 3,000 tonnes against a market requirement of 4,500 tonnes per week during the low season, with a net shortfall of 1,500 tonnes weekly.
