COVID-19: France lock-down deals blow to Kenyan floriculture

The COVID-19 pandemic has wreaked havoc on the global economy, and the flower industry in Kenya is no exception. The Kenya Flower Council has reported a significant blow to the country's flower sub-sector due to the fresh wave of lockdowns across Europe, particularly in France. Clement Tulezi, the CEO of the Kenya Flower Council, shared insights on the impact of the pandemic on the industry, the challenges faced, and the measures being taken to mitigate the effects. The flower industry in Kenya heavily relies on exports to European markets, with Europe accounting for approximately 72% of Kenya's flower exports. The recent lockdowns in countries like the Netherlands, Belgium, France, and Germany have led to a sharp decline in demand for Kenyan flowers. France, for instance, deemed flowers as non-essential commodities, resulting in shelves at supermarkets and florists being cleared of flower stocks. This has caused a significant drop in export orders, with prices plummeting by 20% and many buyers canceling their orders. The Kenya Flower Council is facing a challenging period ahead, with uncertainty looming over the industry's future. Tulezi emphasized the importance of government intervention to support the flower industry during these trying times. He called for tax relief and reduced taxation on inputs such as electricity, water, and machinery to lower production costs. Tulezi also highlighted the need for a unified tax system between the national and county governments to eliminate double taxation. Moreover, he stressed the significance of logistical support, including cheaper freight services, to bolster the industry's growth and competitiveness. Despite the setbacks caused by the pandemic, Tulezi remains hopeful about the industry's resilience and ability to bounce back. He pointed out that export orders are gradually picking up, with the Royal Flora Holland auction in the Netherlands showing promising results. However, Tulezi expressed concerns about the restrictions imposed by the French government and called for diplomatic engagement between Kenya and France to lift these restrictions. The 2016 Kenya-France Trade Agreement serves as a foundation for fostering trade relations between the two countries, and Tulezi believes that leveraging this agreement could strengthen negotiations to ease trade barriers for the flower industry. Looking ahead, Tulezi sees a brighter outlook for the industry's performance in the coming months. Despite initial projections of a significant decline in revenues, recent trends suggest a more optimistic forecast. With continuous support from the government, strategic partnerships, and efficient supply chain management, the Kenyan flower industry aims to navigate through the challenges posed by the pandemic and emerge stronger.