TRALAC - Trade Law Centre

Kenyan flowers attract US buyers’ interest

Thursday, 11 April 2019

Source: East Africa Trade and Investment Hub

Eight Kenyan exporters of cut flowers made 78 linkages worth an estimated $259,000 at the World Floral Expo in Dallas, TX, USA.

The firms were part of a delegation led by the Kenya Flower Council, a USAID Hub grantee.

Their trip to the U.S. allowed them to connect with U.S. buyers to further efforts to expand Kenya’s share of the U.S. cut flower market.

“Today we met with potential wholesalers and from my observation a lot needs to be done in enlightening them on logistics.

Their preferred terms of payment is CIF [cost, insurance and freight] and not FOB [free on board]. We are grateful for this great opportunity,” said Irene Nkatha, Sales Manager of Red Lands Roses.

Kenya is the leading global exporter of cut roses to the European Union with a market share of 38 percent. Yet, the country only has a 1 percent market share in the U.S. where it competes against major suppliers such as Colombia and Ecuador which have lower logistics costs and shipping times.

With high-quality flowers, a strong trade association and large U.S. market, however, there is an opportunity for Kenya to expand duty-free exports of flowers to the U.S. under the African Growth and Opportunity Act (AGOA).

The exporters’ participation in World Floral Expo advanced recommendations in the Kenya National AGOA Strategy and Action Plan, 2018-2023, designed to increase exports in the cut flowers sector. During their trip to the U.S., Kenya Flower Council and the firms were able to gather market intelligence, establish relationships with U.S. stakeholders and raise awareness of the Kenyan flower brand – all actions that will enhance Kenya’s ability to penetrate the U.S. market.

Higher flower exports will also contribute to Kenya’s goal of raising exports to the U.S. by 20 percent annually to reach $744 million by 2022, while also bringing more diverse options to meet U.S. consumers’ demand.

“This is a very potential market for Kenya considering the number of visitors who are serious and willing to do business with us.  We look forward to having more of such opportunities since this serves as a platform to market the Kenya flower brand,” said Boaz Chemweno, Sales Manager of Mzurri Flowers.

The Hub’s grant with Kenya Flower Council aims to increase Kenya’s share of the U.S. market for cut flowers by December 2019.

The Hub and Kenya Flower Council work together to raise cut flower exports by boosting the visibility of Kenyan flowers in the U.S. market through targeted product promotion activities and by building the capacity of exporters to meet U.S. packaging and market entry requirements.


Related News

Kenya seeks to forge close security ties with US

Kenya seeks to forge close security ties with US

Kenya and the United States will continue to cooperate on security in the region, even as both sides focus on advancing economic ties. Ahead of the first Bilateral Strategic Dialogue in Washington on Tuesday, Kenyan government officials say they expect the meeting to also cement security deals focusing on terrorism, policing and border protection. “The two countries are...

07 May, 2019
Kenyan EPZ companies make Sh77.2 billion in sales

Kenyan EPZ companies make Sh77.2 billion in sales

Kenya’s Export Processing Zone-based (EPZ) companies raked in Sh77.2 billion in sales last year, being a 14.7 percent growth compared to Sh67.3 billion realised in 2017. Newly released official data shows that exports, which formed the bulk of trading, rose by 19 percent from 60.7 billion in 2017 to Sh72.3 billion mainly attributed to increased market access in the...

06 May, 2019
Kenyan exports to the US under AGOA rose by 25% in 2018

Kenyan exports to the US under AGOA rose by 25% in 2018

Kenyan exports to the USA in the framework of the African Growth and Opportunity Act (Agoa) rose by 25.8% in 2018, the Kenya National Bureau of Statistics (KNBS) announced in a recent report. In the report, the KNBS indicates that these exports, mainly made of textile products, grew from Ksh33.1 billion in 2017 to Ksh41.6 billion in 2018. The exports under the AGOA...

30 April, 2019
Kenyan textiles maker seeking to expand through AGOA

Kenyan textiles maker seeking to expand through AGOA

Textiles maker Rivatex East Africa Ltd is eyeing regional and international markets with its planned Sh6 billion upgrade. The modernisation drive will increase cotton consumption from 10,000 bales per day against a projected capacity of 100,000, translating to a daily production rate of 40,000 metres, up from the previous 5,000. Managing Director Thomas Kipkurgat said the...

14 April, 2019
East Africa exports to the US hit $1bn in the year to September 2018

East Africa exports to the US hit $1bn in the year to September 2018

Exports from East African countries to the US reached about $1 billion between October 2017 and September 2018, a 17 per cent increase from the same period the previous year. The United States Agency for International Development’s East Africa Trade and Investment Hub said apparel dominated the region’s sales at 84.4 per cent of exports. The Africa Growth and...

31 December, 2018