Kenya farmers to export flowers duty free to Europe

Visitors in a greenhouse at Preesman flower farm at Njoro in Nakuru County on July 3, 2013. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• EU Ambassador to Kenya Lodewijk Briët announced the changes in a statement released on Wednesday.
• This is a relief to exporters whose fresh goods to the European market have been subjected to import duties of between 5 per cent and 8.5 per cent since October this year.

By AGGREY MUTAMBO
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Kenya farmers will from December 25 export flowers duty-free to European market.

This is after Kenya was reinstated to the quota-free and duty-free export regime for European markets for fresh produce.

The farmers have been paying taxes the European Union since September.

EU Ambassador to Kenya Lodewijk Briët announced the changes in a statement released on Wednesday.

“I am very happy to confirm that, as of Christmas day, Kenyan goods – cut flowers, fresh produce and much more - will once again enter the European Union market without tariffs or quota limits.

“This means the Sh200 billion of Kenya exports that are sold in Europe will remain competitive, and Europe will remain Kenya’s largest export market. This is good for Kenyan business and Kenyan jobs - and a sign of our strong partnership for growth,” he said.

The EU formally returned Kenya to this privilege after the European Parliament and the European Council accepted a petition by Kenya to be put back under the Market Access regulation.

This is a relief to exporters whose fresh goods to the European market have been subjected to import duties of between 5 per cent and 8.5 per cent since October this year.

EAST AFRICA

The taxes were imposed after Kenya delayed in finalising an Economic Partnership Agreement (EPA) with the EU and East African Community member states.

The agreement was reached on October 16, two weeks after the stipulated deadline and the EU said its implementation will take time.

“This decision is a relief for Kenya’s floriculture sector and for all operators and businesses involved in the floriculture trade in Kenya in view of the approaching peak sale season — Valentine’s Day,” Kenya Flower Council chief executive Jane Ngige and Union Fleurs (an international flower trade association) secretary general Sylvie Mamias said in a joint statement last week after the EU signalled Kenya may be reinstated earlier than previously announced..

After October, Kenya’s exports of cut flowers and other floriculture products fell under the Generalised System of Preferences (GSP), a type of preferential duties.

Within the EAC, Kenya has suffered the most, because it is the only country considered to a developing economy.

Uganda, Tanzania, Rwanda and Burundi are all least developed economies which mean that they did not need an EPA to enjoy tax-free exports to the EU.

Kenya exports flowers worth Sh46.3 billion and vegetables worth more than Sh26.5 billion to the EU every year.

The industry employs an estimated 90,000 people.