The world is see the COVID-19 pandemic , impacting world economies in unprecedented way . It may be too early to find out the actual retentive - condition shock on supply chains and the Kenyan saving , but what ’s observable is that the economical impact of the coronavirus outbreak has begun take hold in Kenya , with businesses and their employees all of a sudden confronting a harsh new realness of what lie in in the lead . This is much more set in agribusiness , peculiarly the refreshed garden truck manufacture .
The Kenya cut prime manufacture is already experiencing the encroachment on the restriction of movement of people in the finish marketplace body politic . Last week ( UK Mothers ’ Day ) , traditionally is one of the biggest opportunities for Kenya flower export but unmediated sales order have been swerve by more than 50 % and sale on the Dutch Auction are down by 70 % and prices are significantly down on reduced demand . Official advice to shut public gatherings and to keep people ’s passage / motility as low as possible by destination countries , has severely curtail consumer action . accordingly , all Kenyan farm have drastically reduce export volume to below 70 per centime , with a tidy number suspending exportation altogether .
The ripple effect for the Kenya flower diligence include :
The deficiency of sales will severely bear upon cash flowing and will not foregather secure overhead cost . farm will not be capable to sustain their live workforce . This state of affairs is expected to remain for the next few months and businesses will be forced to either send out doer on recreational leave or radically lay off workers . This could trigger labour unrest and further destabilize the floriculture industry in Kenya .
With the turn cancellation of inbound rider trajectory , there is going to be limited infinite to ferry flush . Additionally , bottom may not be able to sell all their payload outer space and will look for other destinations to plunk up loading .
With rock-bottom earnings companies will not be able to take on the price of operation . This is against the backcloth of hold up Value Added Tax repayment , poor prices in the international grocery in 2019 , broken volumes this twelvemonth during the Valentine ’s period and escalating cost of doing occupation topically .
If the situation is to be hold back , there is need for a strong fiscal reaction by the interior administration to put beat in place to stand the flower diligence to get through these decisive times .
Kenya Flower Council is therefore asking the internal governing to consider the pursuit :
The floriculture industriousness presently range as one of the thriftiness ’s fastest growing industries and something we and the Country is proud of . gash prime are among the four direct foreign exchange earner in the res publica - engender crucial forwards and backward linkage with sectors such as manufacturing and agro - processing , inputs market , and transport services .
The manufacture contribute significantly to the achievement of Kenya ’s Vision 2030 and the authorities great 4 agenda and the National Export Development and Promotion Strategy . Leveraging cutting - bound applied science , the floriculture industry in Kenya provide unmediated employment to an estimated 150,000 people , legal age women , and overall , produce utilisation for more than a million mass indirectly , impact in excess of 4 million lifetime .
Kenya is place to the world ’s best flower producers . Globally , it is among the top four nation in product of cut prime and ornamental . We need political science reinforcement to save our manufacture . "
For more info : Kenya Flower CouncilSuite 12 , 4th Floor , The Greenhouse Building , Adams Arcade , along Ngong RoadMobile : ( 254 ) ( 0)733 639 523[email protected]kenyaflowercouncil.org
