Kenyan flower dealers eye high Valentine’s sales

Money Markets

Nairobi flower dealers. Producers have complained of an unfriendly business environment. PHOTO | FILE 

By GERALD ANDAE gandae@ke.nationmedia.com

In Summary

• Demand for flowers rises around the Valentine season, both in the export and domestic markets.
• Flower farmers and merchants are likely to see a boost to their earnings this year due to the strengthening of the Euro against the shilling.
• Flower farms pay agricultural produce cess and have to get single business permits from county governments.

Kenyan flower producers are eyeing higher Valentine’s Day sales after opening up new markets in South Korea and Australia.

Kenya Flower Council (KFC) chief executive officer Jane Ngige said yesterday that the new markets are expected to boost volumes by up to 15 per cent this year. KFC exported flower sales valued at Sh60 billion in the first 10 months of last year.

“It will be a good year to us as we anticipate to sell more this Valentine’s season. Improved sales will be brought about by high demand and the new markets that we have opened up,” said Ms Ngige.

Demand for flowers rises around the Valentine season, both in the export and domestic markets.
Producers expect that Kenyans will buy more flowers this year compared to 2016 due to the fact that Valentine’s Day falls on a weekday.

“Valentine’s this time is on Tuesday and when it comes on weekdays demand is generally high,” said Bobby Kamani, managing director of Primarosa Flowers, a flower producer based in Athi River.

“Last year, Valentine’s was on Sunday and demand was not high. We have seen sales move up more than 25 per cent this year and advance bookings of up to 80 per cent,” he added.

The flower industry received a boost last month when Kenya Airways signed an agreement with Qantas Airways to export 30 tons of cut flowers to Australia monthly.

READ: KQ shipping 30 tonnes of flowers to Australia monthly

READ: Boost for Kenyan farmers after KQ deal to export flowers to Australia

Kenya’s major market is normally the European Union where it supplies a third of cut roses.
Flower farmers and merchants are likely to see a boost to their earnings this year due to the strengthening of the Euro against the shilling.

The Euro has gained 3.4 per cent against the shilling this year, with the local unit exchanging at 110.30 units compared to 106.60 at the end of December. Most flower exports into the EU go through The Netherlands. Last year flower sales meant that the Netherlands was Kenya’s second largest export market at Sh46.6 billion, after Uganda which bought Kenyan goods valued at Sh63.8 billion.

The flower council is also promoting domestic sale by creating awareness among Kenyans.

Ms Ngige said that producers were negotiating with the Nairobi county government to establish buying centres in strategic places within the city to help boost local sales. Despite the high potential that the flower sector has, producers have complained of an unfriendly business environment which has seen some firms shift base to Ethiopia.

Flower farms pay agricultural produce cess and have to get single business permits from county governments.

They are also required to remit taxes to the Ministry of Irrigation, the Water Resource Management Authority (Warma) and the National Environment Management Authority (Nema).