Kenya’s horticulture industry is estimated to be losing at least $ 1 Million per day.
This is despite gradual opening of most markets within the European Union, Kenya’s main horticulture exports market, easing restrictions.
As European countries have begun to ease restrictions, some demand has returned and losses have reduced to about $1 million a day, but the outlook remains bleak throughout the summer months.
Analysis by Scope Markets Kenya shows that while some demand for horticulture exports has returned and losses have reduced, the outlook remains bleak throughout the coming months.
Scope Markets Kenya is a wholly-owned subsidiary of SM Capital Markets, a firm based in Cyprus.
Licensed as a non-dealing online foreign exchange broker by the Capital Markets Authority(CMA), Scope Markets Kenya warns that Kenya’s horticulture industry is in crisis.
This is after global lockdown measures curtailed exports to Europe and disrupted internal African trade.
Shipments of flowers, vegetables, herbs and fruits to the European Union, which accounts for more than 80 per cent of horticulture exports from Kenya, all but ceased in March this year.
Most European capitals immediately went into total lockdown, to stem the spread of COVID-19.
By April and May 2020, Kenya’s horticulture industry was losing about $3.5 million a day, according to the Fresh Produce Exporters Association of Kenya.
Kenyan farms have drastically reduced export volumes to 50 per cent, with a sizeable number suspending exports altogether.
Scope Markets Kenya says if the current situation does not improve soon, companies are facing downsizing or closure, which will result in increased poverty, insecurity and hunger.
80% Kenya’s horticulture exports is to the European Union. Figures indicate that there is a 50% reduction in export volumes.
An estimated $ 3.5 Million was the daily loss incurred by the horticulture industry in the month of April and May this year.
The firm says Kenya has seen its own warnings over the last few weeks with indications that the GDP could fall, with the most aggressive estimates showing a contraction of 1% due to the COVID-19 pandemic.