Kenya’s horticulture industry has demonstrated robust growth, recording a noteworthy 40% increase in export earnings for the third quarter. The Central Bank of Kenya (CBK) unveiled these promising figures in its latest economic report released on Tuesday.
Economic Momentum: Key Metrics
During the July-September period, Kenya’s horticulture exports fetched 39.3 billion Kenyan shillings, reflecting a substantial rise from the 132,956 metric tons recorded in the same period last year. The country exported 209,860 metric tons of produce, generating 184 million dollars.
This upward trajectory builds on the positive performance in the earlier quarters of 2023. Earnings stood at 213 million dollars in Q1, escalating further to 242 million dollars in Q2. The cumulative growth indicates a resilient horticulture sector, hinting at a potential record-breaking year for Kenya.
Factors Fueling Growth
The sector’s rebound in exports since the second quarter signifies sustained growth. Beyond increased export volumes, the surge in earnings during Q3 can be attributed to a robust dollar and the depreciation of the shilling, resulting in heightened income for exporting firms.
Fruits, vegetables, and cut flowers continue to lead Kenya’s horticultural exports. This flourishing sector has become a significant contributor to the country’s foreign exchange reserves, standing alongside the tourism industry.
As Kenya anticipates a remarkable fiscal accomplishment, it is important to note that this growth follows the 2022 success when horticulture earnings reached 1.05 billion dollars. With a resilient sector, Kenya is cultivating economic prosperity amidst global uncertainties.
Photo (Farmers Review Africa)
By: Montel Kamau
Serrari Financial Analyst
14th November, 2023
