Kenya-UK Horticulture Trade Eased with Reduced Tariffs
Plans of a KSh 1.3 billion macadamia and cut flower processing facility in Lamu, aim at increasing horticulture exports capacity
The horticulture trade between Kenya and the United Kingdom has yielded significant gains, prompting the UK to reduce checks and inspection fees on selected Kenyan products. Kenya’s horticultural exports to the UK have maintained a positive trajectory, with the first quarter of 2024 (January to March) recording exports of fruits and vegetables valued at KSh 20.3 billion. This represents a 1.5% increase compared to the same period in 2023, indicating steady growth throughout the year.
To further facilitate trade, the UK has reduced inspection fees on Kenyan exports, a move attributed to Kenya’s enhanced surveillance of horticultural products destined for international markets. This improved monitoring has resulted in fewer checks upon arrival in the UK, highlighting the high quality of Kenya’s exports.
According to Trade and Industry Cabinet Secretary Hon. Salim Mvurya Mgala, the reduction in inspection rates for products such as snow peas and cut flowers, from 10% to 5%, reflects smoother trade operations. In the post-Brexit context, these efforts aim to deepen the bilateral relations between the two nations.
In a reciprocal gesture, Kenya has announced a reduction in import duties on whiskey from the UK, lowering the rate from 35% to 25%. This adjustment is expected to boost UK exports to Kenya, particularly in the alcoholic beverages sector.
Additionally, the bilateral relationship has resulted in a waiver of the 10% tariff on Kenyan flowers exported through the European Union. This waiver, which will be in place for two years, is expected to stimulate Kenya’s flower exports further, reinforcing the country’s position as the world’s leading producer of cut flowers.
Looking ahead, trade relations between Kenya and the UK are set to expand further with plans for a KSh 1.3 billion macadamia and cut flower processing facility in Lamu, Kenya. This initiative follows pledges by UK investors and aims to increase horticulture exports capacity while creating employment opportunities
