Kenya’s Jomo Kenyatta International Airport (JKIA) is facing a major logistical crisis that threatens the country’s lucrative horticulture industry, particularly its flower exports to Europe. Flight cancellations and delays are causing significant setbacks at the airport, affecting operations just as Kenya enters the high export season for fresh flowers, fruits, and vegetables.

This crisis has put Kenya’s flower industry—a vital component of the economy—at risk. JKIA, as East Africa’s largest aviation hub, plays a critical role in facilitating rapid exports of perishables, particularly to the Netherlands, a key market for Kenyan flowers. However, recent disruptions have led companies such as Airflo BV, a prominent Dutch fresh produce logistics company, to request that their Kenyan clients reduce deliveries due to the airport’s backlog of cargo.

A Freight Crisis Hits Kenya’s Flower Sector

In early November, Airflo BV, a leading temperature-controlled logistics company specializing in transporting perishable products, issued an urgent notice to its Kenyan customers. Citing significant flight cancellations and reduced freight capacity at JKIA, the company warned of delays and advised clients to reduce their flower volumes temporarily.

Over the past weeks, JKIA has witnessed around 300 tonnes of perishable goods stuck due to these cancellations. “These disruptions have removed 300 tonnes from our planned airfreight capacity,” Airflo explained, adding that efforts to organize additional charter flights have been stymied by a lack of availability, with demand for freight flights surging from Asia to the U.S.

Flight Reductions and Financial Pressures on Airlines

The challenges facing JKIA are partly due to increased competition for freight capacity among global routes. International airlines, including some that previously operated out of JKIA, have shifted routes in favor of higher-paying lanes in China and the U.S., where they can earn up to $8 per kilogram, compared to $2.5 to $2.8 per kilogram in Kenya. This shift has reduced capacity for perishable goods exports from Kenya, leaving critical agricultural exports in limbo.

Several airlines have suspended their flights from Kenya altogether, worsening the situation for flower exporters who rely on rapid and dependable transport to get fresh products to market in Europe. For an industry that depends heavily on timely deliveries, any delay can result in substantial losses, as fresh flowers have a limited shelf life and are highly susceptible to quality degradation.

Impact on Kenya’s Horticulture Industry

Kenya’s horticulture sector is one of the largest contributors to its economy, generating approximately Ksh157 billion ($1.29 billion) in export earnings in 2023, according to the Agriculture and Food Authority (AFA). Flowers alone account for more than 70% of these exports, with Europe, especially the Netherlands, serving as the primary market. The current crisis could severely impact these figures, particularly as Kenya’s horticulture sector enters its busiest period—the December festive season and Valentine’s Day in February, both peak times for flower demand in Europe.

The Kenya Flower Council, a key industry body, has expressed concern over the potential loss of revenue due to the delays and capacity reductions at JKIA. According to Clement Tulezi, CEO of the Council, “If we cannot reliably transport flowers to Europe, we risk eroding our market share. Clients need consistency, and disruptions like these force them to consider suppliers from other countries.”

Supply Chain Disruptions and Increased Transit Costs

The backlog at JKIA has led to supply chain disruptions, not only affecting Kenya but also impacting the European market, where Kenyan flowers are highly valued. According to the Shippers Council of Eastern Africa (SCEA), the logistics crisis has already increased the cargo backlog at JKIA to around 300 tonnes, with the potential to rise to 800 tonnes if delays persist. Efforts to reduce the backlog include sourcing additional flight capacity, but demand for airfreight services remains high globally, especially during the holiday season, making it challenging to secure alternative solutions.

Moreover, the cost of transit has also risen due to geopolitical issues. The crisis in the Red Sea, where Houthi rebels have targeted ships perceived as supporting Israel, has increased security costs along Egypt’s Suez Canal. As a result, some shipping routes have shifted to take a longer path around the Cape of Good Hope in South Africa. This route adjustment adds up to 10 days to transit times and increases shipping costs by approximately $200 per refrigerated (reefer) container, adding yet another financial strain on exporters who rely on swift delivery to maintain product quality.

Global Demand and Competition for Airfreight Services

The high global demand for airfreight during this season exacerbates the problem at JKIA. Major airlines have redirected capacity to more profitable routes from Asia to the U.S., where they benefit from high freight rates due to the festive season’s demand for goods. Consequently, this has created a scarcity of flights available to service the JKIA-Europe route. This shortage has impacted Kenya’s exports significantly, reducing the competitiveness of its horticultural products on the global market.

The absence of sufficient cargo capacity for perishables has also disrupted other exporters within Kenya’s agricultural sector, particularly those dealing with high-value vegetables and fruits destined for European supermarkets. The delays threaten the reputation of Kenya’s horticulture industry, which is highly regarded for providing high-quality and sustainably farmed produce to European consumers.

Economic Repercussions and Industry Response

Industry stakeholders have highlighted that the ongoing freight crisis could have a long-term economic impact if not resolved swiftly. The horticulture sector provides direct employment to over 150,000 Kenyans and indirectly supports millions more across the country, from small-scale farmers to logistics providers. Prolonged disruptions at JKIA threaten these livelihoods and could weaken Kenya’s standing as a leading exporter of flowers and other perishable goods.

In response, the Shippers Council of Eastern Africa and the Kenya Flower Council have called for immediate government intervention to address the bottlenecks at JKIA. They recommend measures such as negotiating with international airlines to resume or increase cargo services from Nairobi, providing financial incentives, or waiving certain airport fees to attract more freight carriers.

The Role of Consolidators Like Airflo in the Supply Chain

Airflo BV, which manages and consolidates temperature-sensitive shipments for export, has had to request clients reduce volumes due to the logistical difficulties. As a major consolidator for Kenya’s flower exports, Airflo plays a crucial role in organizing cargo, ensuring perishables are transported efficiently and quickly. Consolidators such as Airflo collect goods from various producers and pack them together for transport, maximizing the use of available cargo space and reducing costs for individual exporters. However, with flight cancellations and backlog issues, even large-scale consolidators are struggling to maintain their schedules.

Government and Airport Authority Interventions

The Kenya Airports Authority (KAA) has acknowledged the logistical challenges at JKIA and has promised to work on infrastructure improvements to handle increasing cargo volumes. The authority is reportedly looking at expanding cargo handling capacity, installing advanced storage facilities for perishables, and optimizing ground operations to clear backlogs faster.

To support the horticulture sector, the government is also considering partnerships with private sector logistics providers to ensure cargo doesn’t continue piling up. The Ministry of Agriculture and the Kenya Export Promotion and Branding Agency (KEPROBA) have been coordinating with KAA to explore temporary measures, such as securing priority slots for cargo flights carrying perishables and negotiating for lower airfreight charges for horticultural exporters.

JKIA’s Role in Regional Trade and the Need for Expansion

JKIA’s current challenges highlight a broader need for expanding Kenya’s logistics infrastructure. As a regional hub, JKIA handles the bulk of East Africa’s perishable exports, including fruits, flowers, and vegetables. The airport’s limited capacity during peak seasons underscores the need for additional infrastructure investment. The KAA has plans to develop a dedicated cargo terminal, but it is unclear how quickly this can be implemented.

Expanding cargo infrastructure at JKIA would not only benefit Kenya’s flower industry but would also bolster its role as an export gateway for the entire East African region. By modernizing facilities and streamlining customs processes, Kenya could strengthen its position in international trade and reduce the impact of similar crises in the future.

The Way Forward

With the 2024/2025 high season now in full swing, immediate and coordinated action is necessary to mitigate the impact of the JKIA freight crisis. The Kenyan government, airport authorities, and industry stakeholders must work together to provide short-term solutions to alleviate the current backlog. In the long run, however, sustained investment in cargo handling and export infrastructure is essential to safeguard Kenya’s horticulture sector and ensure that it remains competitive on the global stage. Addressing these logistical bottlenecks will help stabilize Kenya’s flower industry and protect the livelihoods of thousands of workers dependent on the sector.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

12th November, 2024