Opportunities for farmers

Kenya is one of the world’s leading producers and exporters of horticulture. The total value of horticulture exports last year was $1.8 billion, according to the Kenya National Bureau of Statistics. The country is the leading exporter of cut rose flowers to the EU with a market share of 38 percent in 2016.

“Traditionally, 90 percent of exports were destined to the EU, [however] restrictive trade barriers in the EU continue to discourage exporters,” said Professor Germano Mwabu, a World Bank economist and an economics professor at the prestigious University of Nairobi.

The change in markets from Europe to China is a surprise to many, Mwabu asserts. “The quick shift is evidently [due to] China’s foreign policy toward African countries. European foreign policies mainly benefit and protect their citizens. That is why Africa is embracing China as a brother,” said Mwabu.

Adding to this shift is the access to financing for farmers. Mwabu said the amount of loans to Kenyan farmers facilitating their entry into the horticulture export business by banks has doubled since 2014 and farmers are cashing in.

“More people have realized there are markets for horticulture. [But first] you have to prove that [markets exist] to any lender before they will give you their money. Collateral is never enough. The amount of loans given so far has reached $900 million,” said Mwabu.

He said that the World Bank will also launch a program next year that will give grants to farmers ranging between $5,000 and $300,000.

According to the Kenya National Bureau of Statistics, the move to supply the Chinese market has created more than 18,000 direct jobs since January 2016. Also, 69 new micro export companies have been established as banks continue to give loans to horticulture entrepreneurs.

“Later this year or early next year, exporters plan to organize a symposium in Beijing to discuss challenges and current opportunities and a way forward,” said farmer Joscan Makau. “There is no quota system in China as in the EU. So opportunities exist,” he said.