• Rabobank urges Kenya to assemble bouquets locally
• Kenya supplies 40% of Europe’s cut flower imports
• Gulf exports reach $100 million annually

The Kenyan cut flower industry can move further up the value chain in the coming years to increase long-term value, according to Lamber van Horen, senior fresh produce specialist at Dutch lender Rabobank.

Although the sector has weathered multiple shocks in recent years, including the COVID-19 pandemic, which disrupted air transport and drove up freight costs, van Horen said producers should look beyond adaptation and focus on capturing additional margins.

“The flower industry is resilient, but it can create more added value,” he told Ecofin Agency.

Specifically, he said Kenya could develop local facilities to assemble mixed bouquets for the European retail market rather than exporting bulk stems. In Europe, around half of the flowers are sold as ready-made mixed bouquets.

“By assembling bouquets locally, Kenya could capture part of the margin currently taken by bouquet makers in the Netherlands, Miami or Tokyo,” van Horen said. Such facilities could be set up near production areas around Naivasha or in logistics hubs such as Nairobi and Mombasa.

This would require European buyers, particularly large retailers, to pay for sorting, assembly, packaging and labelling services in Kenya, allowing them to receive pre-packaged bouquets ready for store shelves.

Stable outlook for 2026

Looking ahead, van Horen expects Kenya’s industry to operate in a relatively stable European market this year. Demand in Europe is forecast to remain steady despite geopolitical risks, providing continued support for exporters.

Kenya supplies about 40% of Europe’s cut flower imports and accounts for more than 15% of global trade, supported by air links including those operated by Kenya Airways.

Another key issue will be logistics reliability to Gulf markets. In recent years, the industry has sought to diversify beyond the European Union by expanding sales to Qatar, the United Arab Emirates, Kuwait, Bahrain and Saudi Arabia. According to Rabobank, annual cut flower shipments to these Gulf countries now total around $100 million.

The Red Sea crisis, which has forced shipping lines to reroute vessels via the Cape of Good Hope and extended transit times, has raised sea freight costs and pushed many exporters back to air transport. Industry players will be watching whether Nairobi can secure regular and competitive air connections to Gulf destinations, which offer attractive prices for Kenyan exporters due to strong local purchasing power.

Rabobank estimates that around 100,000 people work directly on flower farms in Kenya, with a further 60,000 employed in logistics and related services. Kenya ranks as the world’s fourth-largest exporter of cut flowers, behind the Netherlands, Colombia and Ecuador, generating between $450 million and $520 million a year from cut rose exports.

Espoir Olodo