US end-market analysis for Kenyan cut flowers
Cut flowers are a major export industry in Kenya. Kenya presently ranks first among world exporters of roses to the European Union (EU), with a market share of 38 percent. However, the country has not yet made as deep of inroads into the cut flower market in the United States (U.S.). Kenyan cut flower exports to the U.S. have grown since 2010, but the country’s market share remains small, standing at 1 percent. This report analyzes emerging opportunities to increase Kenyan flower exports to the U.S. while taking advantage of the benefits granted under the African Growth and Opportunity Act (AGOA).
In 2016, Kenya ranked as the twelfth greatest supplier of cut flowers to the U.S. Nearly 90 percent of the cut flowers imported by the U.S. come from three countries: Colombia (59 percent), Ecuador (22 percent) and the Netherlands (7 percent). Colombia and Ecuador, who make up more than 80 percent of the imported flowers, present stiff competition. The countries profit from longstanding commercial relationships with the U.S. and geographic proximity, which reduces freight and transport costs. Both countries enjoy duty-free access to the U.S. market, as does Kenya.
Nonetheless, Kenya has a strong, competitive cut flower industry that is ready to explore new markets. The industry is profitable and technically competent, it has developed efficient logistics to the European markets and it offers high-quality flowers at competitive prices. If the industry can use these strengths and adjust to the U.S. market, there is an opportunity to develop a market niche for its flowers, including roses and other breeds.
This report assesses the U.S. market and offers the following recommendations for Kenyan cut flower exporters:
- Expand and consolidate trade linkages with U.S. buyers.
- Improve Kenyan flowers’ competitiveness through quality assurance, improved logistics and packaging. Factors directly contributing to the quality of flowers shipped long distances, particularly postharvest handling, packaging and an appropriate cold chain, need strengthening.
- Position Kenyan roses in a different, but not inferior, market niche from Colombian and Ecuadorian roses and consider the potential of lilies, carnations and chrysanthemums, which Kenya currently exports and the U.S. imports, but are not a large part of Kenya-U.S. trade.
- If exporters decide to access the bouquet market, Kenya has the capacity to source a wide variety of good quality products including cut foliage. This may be achieved either by elaborating bouquets at origin or liaising with a bouquet maker in Miami wishing to import specific flower types.
- A strong connection between Animal and Plant Health Inspection Service, the phytosanitary authorities in the U.S., and the Kenya Plant Health Inspectorate Service (KEPHIS) needs to be developed to increase confidence in Kenyan products at the U.S. borders. KEPHIS also needs to develop pest risk analyses on specific flower types (particularly roses), which follow U.S. guidelines.
- Strategic alliances and joint investments should be built with exporters from countries that have an advanced flower sector and can bring their technology, marketing and distribution capacities to the table.
- Supply should be leveraged with flowers from other African countries that might use Nairobi airport for shipping of their produce.
- Efforts to brand Kenyan flowers as unique are encouraged during promotion efforts, particularly for bouquets. Selling wholesale will have a lower impact as flowers will likely be mixed with those of other origins before reaching the end consumer.
Read related news articles
Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....
19 March 2024
US President Biden to welcome Kenyan President Ruto to the White House in May
President Joe Biden plans to welcome Kenyan President William Ruto to the White House in May, hosting a state visit after reneging on his promise to visit Africa last year. White House press secretary Karine Jean-Pierre said Friday that the visit set for May 23 will mark the 60th anniversary of U.S.-Kenya diplomatic relations and "celebrate a partnership that is delivering for the people" of both countries while affirming "our strategic...
18 February 2024
'Nigeria missing as Kenya, Ghana tap AGOA opportunities to boost foreign exchange earnings'
Africa’s biggest economy is still failing to tap the opportunities that the African Growth and Opportunity Act (AGOA) present to boost its foreign exchange, amid acute dollar shortages. The AGOA has been on for over twenty-three years as it was enacted in 2020. In 2015, the program was modernised and extended to 2025, implying that there are only about 15 months before the window closes. Some countries have taken advantage of the AGOA more...
05 February 2024
Kenya-US to deepen ICT, apparel and agriculture trade
Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms. A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...
09 November 2023
Kenya President Ruto joins US-Kenya business roadshow in San Francisco
Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a...
15 September 2023
AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth
The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...
08 August 2023
Kenya's president meets US delegates on trade and investments
Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...
19 July 2023
US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]
The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach. Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...
17 July 2023
US boosts Kenya apparel industry with $55m in new trade deals
The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...
29 April 2023
Why Africa, why Kenya? Remarks by US Ambassador to Kenya
Thank you, Scott, for the kind introduction. It is a pleasure to partner with the Prosper Africa initiative to drive investment in Kenya and countries across the African continent. I am happy to kick off our U.S.-Kenya Business Roadshow with all of you today, and to announce that we will be partnering with Prosper Africa throughout the year to engage businesses and investors in cities across the United States. Our next stops include San...
26 April 2023
Kenya-USA: Joint Statement on the third US-Kenya bilateral strategic dialogue [incl. VIDEO]
The text of the following statement was released by the Governments of the United States of America and the Kenya on the occasion of U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. Begin Text: The Governments of the United States of America and the Republic of Kenya held the third iteration of the U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. The U.S.-Kenya Strategic...
24 April 2023