Flower industry decries airfreight crisis, soaring costs and wastage

Kenya’s flower industry, a vital contributor to the country’s economy and global horticulture trade, is facing a crisis triggered by a severe shortage of airfreight capacity.

At the opening of the International Floriculture Trade Expo (IFTEX) 2025 in Nairobi, last week on Tuesday, government officials and industry leaders did not shy away from highlighting the growing pressures.

From air cargo constraints and shifting phytosanitary rules to climate change and compliance with tough new European Union (EU) sustainability laws, stakeholders warned that without swift and strategic interventions, Kenya’s dominance in the global cut flower market could be at risk.

Since late last year, Kenya’s flower exporters have grappled with reduced access to cargo space and escalating transport costs, especially during peak seasons like Valentine’s Day, Mother’s Day and International Women’s Day, when flower shipment surge.

“The freight bottleneck began around November last year when some major airlines re-routed or scaled back operations from Nairobi,” said Chief Executive Kenya Flower Council (KFC), Clement Tulezi on the sidelines of the three-day long flower event in Nairobi.

“That sudden drop in capacity created a crisis, and we’ve been in it ever since.”

“Some farms were forced to dump up to 40 percent of their harvests because they simply couldn’t get the flowers out in time,” the official said. “And when you lose that much of your volume, you're not just losing flowers resulting in massive financial losses, you’re losing revenue, jobs, confidence and long-term reputational risk.”

At the height of the crisis, freight costs more than doubled jumping from approximately $2.20 per kilogramme to $4.50 per kilogramme.

While prices have since eased slightly, stabilising at about $3.90 per kilogramme, they remain significantly higher than before.

This spike is especially damaging in an industry where airfreight accounts for 30–40percent of total production costs.

Kenya’s reliance on foreign airlines for cargo has been magnified by the limited freight capacity of the national carrier, Kenya Airways (KQ), which primarily operates passenger aircraft. While other countries — notably Ethiopia — have invested in cargo-focused fleets like Boeing 777 freighters, Kenya has not.

Yet, Kenya’s aviation policy gives KQ significant influence over which foreign airlines are allowed landing rights before being licensed by the Kenya Civil Aviation Authority, a setup that limits competition and contributes to capacity constraints.

This dynamic has made it difficult for other international cargo operators to step in and relieve the pressure, especially during high-demand periods.

Industry leaders are calling on the government to urgently intervene. They argue that Kenya should open its skies to more international cargo carriers, particularly during the high season between January and May when export volumes peak.

They also recommend allowing adhoc cargo flights — non-scheduled, one-off aircraft — especially from nearby hubs like Dubai or the United Arabs Emirates, to ease capacity constraints on short notice.

Another concern is the high cost of landing rights and related fees, which many operators find prohibitive. The industry is urging the government to review and possibly waive these charges for airlines servicing the flower sector, especially during periods of acute freight demand, to encourage more freight movement.

In addition, there is a growing call for KQ to explore partnerships or leasing arrangements with cargo-focused airlines carriers. Players said shared cargo operations could help lower costs and increase availability in a way that benefits exporters.

“We’re not just raising alarm. We’re offering practical solutions,” said Mr Tulezi. “These proposals have been shared with the Ministry of Transport, Kenya Civil Aviation Authority, and Parliament. The question now is whether the government is willing to act decisively.”

The impact on the sector is already visible. Kenya’s flower export earnings dipped from Sh110 billion in 2023 to under Sh100 billion in 2024, a decline attributed in part to the inability to get flowers to market during critical holidays.

As freight remains the biggest expense for flower producers, sustained high transport costs are forcing farms to consider layoffs — with labour being the second-largest cost component.

“Should the current situation go unresolved, a further decline in revenue is expected, one that will significantly affect operations,” warned Mr Tulezi.

Growers, particularly smaller ones, are facing tough choices. “If freight continues to take the biggest slice of costs, the next cut will be labour,” a flower grower cautioned. “And that’s devastating in a sector that employs over 200,000 Kenyans.”

The crisis also risks weakening Kenya’s competitive edge over Ethiopia— another floral powerhouse on the continent— whose continued investment in state-backed cargo infrastructure has strengthened its position. Although Kenya still exports three times more flowers, Ethiopia’s efficient logistics, government-backed freighters, and cohesive national strategy make it a formidable rival.

“We acknowledge the challenges facing the horticultural export sector, particularly in airfreight, and are actively working to address them. Some of these issues can be resolved in the short term, especially those related to policy around transportation and cargo access,” said Agriculture Cabinet Secretary Mutahi Kagwe, at the opening of the event.

Kenya’s advantages such as a liberal investment environment, Nairobi’s status as Africa’s top cargo hub, and highly skilled labor, are not enough to offset chronic logistical inefficiencies, warned an industry insider.

“Freight shouldn't be the reason Kenya loses its floral crown. We’ve built this industry over decades. It is time to protect it,” Mr Tulezi said.

Industry leaders are calling for urgent, coordinated action from the Ministry of Transport, Kenya Airways, and other regulators. Without decisive steps, the sector may face more farm closures, job losses, and reduced global competitiveness.

In 2024, Kenya’s horticulture exports were valued at KSh136 billion, with cut flowers making up 53 percent, fruits 30 percent, and vegetables 17 percent. Over 240,000 tonnes of fresh flowers, 98,000 tonnes of fruits, and 130,000 tonnes of vegetables and herbs were exported.

The EU, UK, Australia, the Middle East and Asia are key markets. The flower industry remains the top sub-sector, supporting over 200,000 jobs and reinforcing Kenya’s status as a leading global exporter.

“We are engaging with the Kenya Civil Aviation Authority (KCAA) to increase cargo capacity, not just by relying on local infrastructure, but by creating room for external players who have the capacity to deliver. While we support investing in and strengthening our national airline, we must also be realistic. We cannot hold the agriculture industry hostage in an attempt to protect institutions that are not adequately equipped to meet current demands,” he added.

Using a vivid analogy, Kagwe likened the situation to “a child’s game, where someone holds onto oranges they can’t use, while also denying others the chance to use them.”

“We need a shift in both policy and philosophy. Our ultimate goal is to grow the industry, and that requires expanding freight capacity. To this end, I will be engaging fellow cabinet members and stakeholders across government and industry to forge a unified, practical approach that supports a thriving, export-driven agricultural ecosystem,” the CS said.

→ [email protected]