Horticulture Revenue Increases by Sh18 billion on a Strong Dollar

The weak shilling has benefited horticultural businesses this year, which has seen their exports increase by 34% despite a 92 percent decline in volume.

Comparing the January to July period to the same time previous year, Kenya’s horticultural exports brought in Sh18.8 billion more.

From January to the end of July, Kenya exported 229,418.9 tonnes of cut flowers, fruits and vegetables. The exports were down from 2.98 million tonnes exported during a similar period last year.

However, earnings grew from Sh54.75 billion to Sh73.57 billion, reflecting the positive impact that the depreciation of the shilling has had on exports.

“The quantity of cut flowers exported increased from 8,931.54MT in June 2023 to 11,715.32MT in July 2023. Additionally, the value of cut flowers exported increased from Sh5.18 billion to Sh6.9 billion during the same period,” the Kenya National Bureau of Statistics (KNBS) states in an August report.

According to the August Leading Economic Indicators, less cut flower was shipped in the first seven months of 2023—78,799.17 tonnes as opposed to 2,89 million tonnes during the same period last year.

Due to the performance in March 2022, when 1.4 million tonnes of flowers were sold as opposed to the 12,936.78 tonnes exported in March this year, the exports last year were higher than usual.

However, compared to the Sh41.7 billion they brought into the nation last year, the value of flower exports this year was Sh45 billion, up 8%.

In the first seven months of 2023, fruit exports nearly quadrupled to 111,678.76 tonnes, but their value increased by 138% to Sh17.6 billion.

Vegetable exports increased by 68.9%, from 23,056.93 tonnes to 38,941.03 tonnes, while revenue from exports increased by 94 percent, reaching Sh10.9 billion.

Between August of last year and August of this year, the shilling lost 20.5 percent of its value against the dollar.