17 May 2018

Kenya: High Costs Taking Shine Off Tea, Coffee Exports to UK

Kenya could lose its competitive edge in coffee, tea and flower exports to the UK on account of high cost of production compared to other exporters.

A report by Overseas Development Institute in partnership with Export Promotion Council (EPC) indicates Kenya is ceding its share of the market to rivals such as Rwanda, Ethiopia, Cote d'Ivoire and Zimbabwe.

Kenya, known for its cut flower to the European market, is losing out to Ethiopia, which is coming out strongly in floriculture. The county is also losing to Rwanda on fermented black tea and coffee to Cote d'Ivoire.

Aarti Krishnan, a senior research officer with the Overseas Development Institute said Kenya has to diversify exports to the UK market, cut down on cost of production and provide incentives to boost share of trade in Britain andcompete with the emerging threats. "The government has to step in and address standards, cost of production and offer incentives to remain relevant in the UK market," she said.

She pointed out that, for instance, Ethiopia has offered incentives to farmers and exporters, who enjoy subsidised freight charges to European market.

"There has been stiff competition that has affected the value of goods that we export to the UK market and this report is aimed at helping us to restore our share," said EPC chief executive officer Peter Biwott.


Media Council Warns Jeff Koinange, Citizen TV Over Atwoli 'Sex' Interview

The Media Council of Kenya has rapped Citizen TV saying its anchor Jeff Koinange breached the journalists' code of… Read more »

See What Everyone is Watching

Copyright © 2018 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.