Some foreign-owned flower firms are now shifting their operations from Ethiopia to Kenya and Uganda as conflict in the Amhara region disrupts Ethiopia’s horticulture sector.
- •Selecta Group, a leading global horticulture company, announced plans to shift its flower production from Kunzila, Ethiopia, to its primary facilities in Kenya and Uganda.
- •The decision was driven by Ethiopia’s political instability and uncertain security conditions, and marks a strategic realignment aimed at ensuring an uninterrupted supply chain and workforce safety.
- •In a statement, Selecta emphasized that the transition will not impact customer deliveries because its production capacities in Kenya and Uganda have been expanded to accommodate the shift.
“The closure of our Kunzila site was not an easy decision, but it was a necessary one. Despite our best efforts over the past two years, logistical hurdles remain insurmountable under the current circumstances. Most importantly, we could not continue operations without guaranteeing the safety of our employees,” the company said.
“It is not possible to implement an economically necessary expansion of operations, nor is it possible to work sustainably under these conditions. At the same time, this means that many local colleagues who put their heart and soul into their work now face an economically uncertain future,” Per Ansgar Klemm, Selecta One’s CEO, added.
The company expressed confidence that these regions will provide the necessary stability and operational efficiency to support long-term growth. Selecta’s decision reflects a broader trend of other flower companies reassessing their investments in Ethiopia.
Selecta’s pivot to Kenya and Uganda could further bolster these nations’ positions as key players in the global horticulture sector. With favorable growing conditions and an experienced labor force, both countries are poised to benefit from increased investment in commercial floriculture.
Media reports also point out similar exits by Dutch-owned flower firms such as Tal Flower Farms and Tana Flora, which left Ethiopia last year due to incidents of looting and arson.
Kenya is a major player in the global flower industry with around a 16% market share. Its well-established infrastructure, favorable investment climate, and strategic position in global trade routes make it an attractive alternative for horticultural companies seeking stability.
According to the Kenya National Bureau of Statistics (KNBS), Kenya exported a total of 102,476 metric tons of cut flowers, generating KSh 72 billion in revenue. The highest export volume was recorded in October at 9,769 metric tons, while the lowest was in June at 6,705 metric tons.
The Ethiopian Horticulture Producer Exporters Association (EHPEA) has urged the Ethiopian government to compensate affected companies to prevent further departures, but many firms remain unconvinced as the security situation deteriorates.
While Ethiopia struggles to maintain its flower export revenues, which generated over KSh 64.6 billion last year, Kenya is poised to slice a bigger pie on that market.
