The Central Bank of Kenya (CBK) explained why Kenya lost a total of Ksh6.3 billion in a span of eight months through its export business.
According to its data chronicling the duration between January and August, CBK explained that the country exported vegetables, fruits, and cut flowers worth Ksh84.1 billion (USD717 million) in 2022.
The figure was a decrease from the Ksh95 billion (USD769 million) exports realised in a similar period in 2021.
The country, therefore, recorded a decline in exports by a value of Ksh6.3 billion (USD52 million) which the CBK explained was caused by a myriad of factors.
At the top of the list, the regulator explained that the exports were slowed down majorly by the Russia-Ukraine war that is still ongoing.
The war caused a spike in international trade and led to an increase in the price of oil per barrel.
CBK also noted that the jump in inflation in the European countries slowed down the demand by flower and vegetable customers in Europe.
The European Union is ranked as the world's biggest consumer of flowers exported from Kenya representing 45 per cent of all exports.
The horticulture trade was impeded by the outbreak of the pandemic in 2020 which led to the closure of air transport as well as global borders.
The trade is valued at Ksh50 billion and is ranked among the biggest contributors to the Kenyan gross domestic product.
The UK Envoy to Kenya, in May 2022, launched a fund to upend the fortunes of the families that depend on the horticulture trade.
“Our economic relationship with Kenya is a key cornerstone of our strategic partnership. We want to see more Kenyan produce from fresh and frozen fruit and vegetables to mangoes and avocados on supermarket shelves in the UK,” stated UK Trade Envoy to Kenya, Theo Clarke, at the time.
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