The Kenyan flower industry has insisted that the sector remains healthy, despite the ongoing crisis surrounding the European currency.
Kenya’s flower industry is heavily dependent on exports to Europe – so the weakening of the euro in the past few months has raised questions about the knock-on effect on the country. Speaking to East African business news agency, Capital Business, Fresh Produce Exporters of Kenya cheif executive officer Dr Stephen Mbithi said that there was reason to be optimistic: “We were a bit worried when it [the euro] went down but we are seeing that the euro is slowly strengthening. At the time it was low we were having a hard time paying for inputs because of the currency fluctuations.”
Analysts have, however, predicted a tough time for the flower industry in Kenya as demand in Europe drops off. The situation remains unclear at the moment as the industry in its low season, when Europe can produce a greater proportion of the flowers and vegatables it consumes within its borders.
About 72% of Kenya's horticulture exports are paid for in euros, while 25% are paid in British pounds, and three percent in dollars.
