Horticulture Exports Hit by Freight Service Withdrawal
The Shippers Council of Eastern Africa has called for temporary approvals of alternative freight carriers to bridge the gap
Kenya’s horticultural sector, which generated Ksh 157 billion in export earnings in 2023 according to the Agriculture and Food Authority (AFA), is now facing new challenges as several international airlines withdraw their freight services.
Despite obstacles such as the Red Sea crisis and high freight charges, the sector had previously shown resilience to the challenges and posted a great returns balance sheet. However, the current situation is concerning, as agriculture—particularly horticulture—plays a crucial role in Kenya’s economy.
Airlines are reportedly pulling their freight services from Jomo Kenyatta International Airport (JKIA) due to low returns compared to other routes. This decision has prompted the Shippers Council of Eastern Africa (SCEA), representing importers and exporters, to urge the government to address the logistics crisis at JKIA.
The Shippers Council of Eastern Africa has called for temporary approvals of alternative freight carriers to bridge the gap, estimated to be 800 tonnes, and has suggested wet-leasing cargo planes as a short-term solution.
Shippers Council of Eastern Africa executive officer Agayo Ogambi highlighted that the withdrawal of services could lead to delayed deliveries, market losses, and reduced shelf life of exported products, all of which could result in significant financial losses for exporters.
Wet leasing refers to short-term leasing of an aircraft, complete with crew, fuel, and insurance, while dry leasing is a long-term arrangement. The Shippers Council of Eastern Africa notes that foreign airlines are being drawn to other global routes that offer higher returns, especially with the festive season approaching.
Kenya’s horticultural exports, particularly fruits and vegetables, hold a notable share in global markets. Major exports include avocados, pineapples, mangoes, apples, and oranges, alongside vegetables like tomatoes, cabbages, kales, and French beans. In 2023, bananas accounted for 34% of fruit production, followed by avocados at 23%, mangoes at 16%, oranges at 5.8%, and watermelons at 5%.
