Overview | Agriculture in Kenya's Economy | Investment Opportunities by Sector | Kenya Flower Industry |

 

Overview

Kenya’s exports to the EU are mainly agricultural commodities, which accounts for over 90% of total export value. These commodities are primarily cut flowers, Fruits and vegetables.

 

	Tea and Coffee		Semi-processed Tobacco
	Fish and Seafood		Textile and Clothing
	Sugar		Handicraft

 

Though trade with the EU is considered to be flourishing, it remains 2nd to COMESA, which currently holds approximately 28.5% of total export products. The Netherlands, United Kingdom, Germany, and France are leading EU destinations of Kenyan exports.

Kenya’s export to this market has been growing significantly since the 1990s due to the immense growth in the horticultural sub-sector.

 

For instance, in 2003 exports of horticultural products were valued at over €364 million compared to €283 million the previous year (29% increase).

 

Industrial and finished products are imported from the EU, such as:

 

	Motor vehicles and parts		Household and commercial appliances
	Aircraft and associated equipments		Telecommunication equipment and electronic goods
	Data processing instruments		Rubber & plastics
	Medical and veterinary instruments		Paper products
	Pharmaceuticals		Textiles and leather goods
	Iron and steel products

 

More information on trade statistics with the European Union is available on www.europa.eu.int/comm/trade

Kenya's Agricultural Economy

Kenya has a large horticultural industry consisting of thousands hectares of flower production. The majority of these hectares consist of cut rose production. This covers 85 percent of the total production in flower stems.

 

In 2004 there were one hundred hectares of open fields in rose production. The majority of these flowers are grown in greenhouses, others are grown in bare soil, and a small percentage is grown based on substrate cultivation, using free drainage to the soil. The Kenyan horticultural industry is making progressive innovations to use environmentally friendly techniques. The demand for Kenyan roses is drastically increasing in the European market. More than 1 million bouquets per day end up on the shelves of the European supermarkets. Thus sixty percent of the export markets are countries within the European Union.

 

The main agricultural exports are tea and coffee - including the highly desired Robusta and Arabica flavours. The success of Kenya’s French beans and avocados in foreign markets, have placed them among the top exported items. Some importers of Kenyan Coffee specifically to The Netherlands include: DOUWE EGBERTS, J.TH. DOUQUÉ'S KOFFIE BV, GERARD DE HAAN BV. For more information on Kenya coffee traders refer to the website of Netherlands Coffee Roasters and Tea Packers Association (VNKT) www.vnkt.nl

Flowers & Fresh Produce Exports from Kenya to the Netherlands 2005-2007

2005				2006			2007
Product	Tonnes	€	%	Tonnes	€	%	Tonnes	€	%
Cut Flowers	52,404	165,288.92	38.4	56,361	196,498.55	41.8	9,876	200,941.28	41.4
Beans	3,292	7,377.61	15.4	3,312	9,866.88	19.5	4,734	14,452.01	28.2
Avocados	3,481	2,827.23	5.5	2,262	2,413.58	4.3	2,379	2,792.64	4.1
Coffee	3,933	8,176.56	2.6	3,218	6,715.37	1.8	3,286	6,732.84	1.6
Tea	1,582	2,034.71	4.3	339	562	1.2	823	1,133.69	2.3

Exported value in EU, % - Share of exports Source: EVD International Databank

 

Green Coffee from Kenya

 

Netherlands
1997	2,532
1998	1,460
1999	6,666
2000	10,625
2001	6,684
2002	1,298
2003	3,871
2004	4,137
2005	3,933
2006	3,218
2007	3,286

Netherlands Coffee Roasters and Tea Packers Association (VNKT)

 

 

Investment Opportunities by Sector

The following opportunities are available for investment within the agricultural sector:

 

	Manufacture of alternative energy sources through agriculture, including bio-fuel and green energy
	Water allocation and storage to improve irrigation infrastructure and increase efficiency in water use.
	Expansion of food processing and utilization of farming resources, which is a high growth area, and is key to the success of Kenya's agriculture.
	Biotechnology to increase and diversify agricultural exports.

 

Kenya Flower Industry

Kenya's horticultural sector is the fastest growing industry in the country, and is the third largest foreign exchange earner after tourism and tea. In the Netherlands, the import of cut flowers has increased tremendously. Dozens of Dutch companies have invested in Kenya due to the increased success of the product in the European Market. Kenya is known to have a constant climate, an excellent place for growing flowers year round. Most of the flower imported to the Netherlands are grown and processed in Naivasha, Rift Valley. Investing in the flower industry is not only restricted to Naivasha, but has expanded to other parts of Kenya e.g. Thika, Eldoret and Nanyuki. Successful Dutch companies that currently produce and trade with Kenya include: Flora Holland, Mavuno Group’s Bloom Holland, and Teleflower Auctioneers in Aalsmeer.

 

 

Kenya – Cut Flowers Export Comparison Chart

The Netherlands, UK, Germany, Switzerland, Belgium and France

 

2005				2006			2007
Product	Tonnes	€	%	Tonnes	€	%	Tonnes	€	%
Netherlands	52,404	165,288.92	38.4	56,361	196,498.55	41.8	9,876	200,941.28	41.4
United Kingdom	18,673	75,781.15	9.9	18,227	79,302	9.9	16,785	76,269.55	9.4
Germany	2,707	11,580.32	1.3	3,229	14,401.9	1.7	3,878	17,081.24	2.1
Switzerland	1,377	12,596.07	9.7	1,238	9,879.62	7.5	1,293	10,255.75	7.9
Belgium	812	2,353.48	2.2	2,833	8,827.25	7.8	4,066	12,529.69	10.3
France	806	4,985.59	1.2	37,047	5,838.93	1.4	112	7,681.96	2

Exported value in EU, % - Share of imports to specified country from Kenya Source: EVD International Databank

 

 

For more information on the Kenya flower industry

 

	Kenya Flower Council: http://www.kenyaflowers.co.ke
	Mt. Elgon Orchards Ltd: http://www.mtelgon.com
	Flora Holland http://www.floraholland.com
	Bloom Flowers: http://www.bloom-flowers.com