Kenyan Flower Growers Hit Hard by Middle East Conflict, Losing $1.4M Weekly

Kenya's flower industry is suffering massive financial losses due to the ongoing conflict in the Middle East, with growers reporting $1.4 million in weekly losses. Shipping disruptions and reduced demand have forced some farms to discard half their daily flower production.

ISINYA, Kenya (AP) — The ongoing Middle East conflict is devastating Kenya’s flower industry, with growers reporting devastating weekly losses reaching $1.4 million as shipping routes face major disruptions and customer demand plummets.

According to the Kenya Flower Council, which represents the country’s cut flower and ornamental plant producers and exporters, the industry has sustained more than $4.2 million in total losses during the past three weeks since the conflict escalated.

“We are seeing a reduction in movement, delays in movement of produce, and longer routes, while pricing is extremely high. Last week, we were at $5.80 per kilo, which is the highest we’ve had in the last 10 years,” KFC Chief Executive Officer Clement Tulezi told The Associated Press.

The horticulture sector represents a crucial economic pillar for Kenya, generating more than $800 million in annual revenue according to Central Bank of Kenya data.

Operations at Isinya Flower Farms, situated 56 kilometers south of Nairobi, have been severely impacted, with export volumes plummeting by more than 50 percent, according to Marketing Manager Anantha Kumar.

“Previously, we used to export 450,000 stems per day, and currently we are doing about 150,000 to 200,000 stems a day. So we are discarding almost 50%,” Kumar told The Associated Press.

Under normal circumstances, Middle Eastern markets represent approximately 30 percent of Isinya Flower Farms’ business and 15 percent of Kenya’s national flower exports, while European buyers constitute the primary market at 70 percent.

Despite the Middle East not being Kenya’s dominant flower export destination, the regional conflict has severely disrupted cargo transportation to Europe, driving up costs while simultaneously reducing export capacity.

“With the current freight rates, customers are not able to buy. And while the freight rates are high, it is also difficult to get the freight. Only a few freights are operating, as mainly the Middle Eastern carriers have stopped, and the European carriers are charging about $5 per kilo, which is two times the normal rate,” Kumar said.

Industry leaders, including those at Isinya Flower Farms, are warning that prolonged conflict could trigger sector-wide deterioration reminiscent of the COVID-19 pandemic’s impact. This scenario threatens employment for up to 500,000 Kenyans who depend directly on the flower industry for their livelihoods.

The Kenya Flower Council is currently petitioning the national government to establish direct cargo flight services to Europe as a strategy to preserve European market access and provide relief to struggling flower producers.