Kenya Airways planes at Jomo Kenyatta International Airport in Nairobi (file photo). A government policy that favours struggling national carrier Kenya Airways (KQ) against its cheaper competitors to transport fresh produce to other countries continues to hurt other exporters.
They have complained about the lack of capacity on KQ to ferry their produce and the airline’s expensive airfreight charges. They now fear they could be forced in the coming days to throw away half of their produce due to the logistical challenges.
Farmers lament that about a quarter of their produce is rotting on farms because of KQ’s inability to ferry goods per local demand, with the flower industry saying it is losing Sh4 billion monthly, losses farmers fear could double in the coming days if there is no intervention.
"We are falling short of 1,500 tonnes weekly due to lack of cargo space, since flower growers are harvesting 5,000 tonnes weekly and only 3,500 tonnes is being exported. The tonnage being exported weekly is a detriment to the vibrant sector," said Kenya Flower Council CEO Clement Tulezi.
KQ yesterday told the Nation it had ferried about 25,000 tonnes of fresh produce (flowers, fruits and vegetables combined) this year, indicating that its capacity over the 11 months falls short by more than half of the current 5,000-tonne weekly demand.
The 25,000 tonnes also represents an average of 2,272 tonnes every month and 568 tonnes weekly over the 11 months, a figure almost nine times lower compared with current demand.
While exporters also complain that KQ has increased airfreight charges to transport produce from Nairobi to Europe by 73 per cent from $1.5 to $2.6 per kilo (Sh168 to Sh291), raising their costs and reducing their profit margins, the airline said it had only increased freight rates by 15 per cent.
"However it is important to highlight that whereas fuel prices have nearly doubled versus baseline October 2020, freight rates have only increased by a 15 per cent average. KQ holds that the freight rates offered in the market are competitive," Mr Peter Musola, KQ cargo commercial manager, told the Nation yesterday.
Fresh produce and flower exporters are facing the logistical problems at the worst of times – peak season for the sector, with huge demand in Europe and other overseas markets.
The horticulture sector is one of Kenya’s biggest foreign exchange earners, bringing in over Sh600 billion over the past five years.
Last year, Kenya exported 592,068 tonnes of […]