This archive report was first published on 7 May 2020.
Kenya's agricultural sector is facing a significant blow due to the COVID-19 pandemic, with farmers expected to lose up to Sh150 billion in exports.
According to Bernard Kiarie, chief executive at the African Alliance Kenya, agricultural exports (horticulture, tea, and coffee) have declined by 40% since the start of the pandemic, resulting in an annualised loss of Sh150 billion.
Mr. Kiarie warned that the situation will be dire in 2020 if production is underwhelming, leading to a need for additional resources from the central government at a time when competing needs are on the rise.
Low demand in the European market has already pushed the flower industry to the edge, with several farms announcing layoffs and closures. Freight costs have also increased significantly, with prices ranging from Sh450 to Sh700 per kilogramme.
Okisegere Ojepat, the chief executive of Fresh Produce Consortium of Kenya, noted that cargo carried in the bellies of passenger flights accounts for about 40% of cargo exports, while the remaining 60% airlifted via cargo freights has seen a significant decline in volume.
The various flower auctions in Europe have since closed down in COVID-19 containment measures, cancelling orders and cutting Kenya's exports.
As a result, agriculture is at risk of serious implications on forex earnings due to low demand in key destinations and production disruptions locally due to transportation challenges.
The earnings from the main agricultural exports stood at Sh256.8 billion in 2019, and the sector is also facing threats from locusts and floods that have wreaked havoc across the country.
