Crisis in Kenya’s fresh produce exports as more freighters exit

Kenya’s horticultural and fresh produce sector is counting losses running into billions of shillings as continued withdrawal of freighters hurt exports.

According to industry players, the situation which begun in early October has worsened as more airlines pullout freight services from Kenya in favour of more lucrative routes.

Qatar Airways is reported to have withdrawn two freighters serving the Nairobi– Liege (Belgium) carrying flowers, which has reduced the export capacity by 200 tonnes.

Magma Aviation has also withdrawn their Wednesday freighter that carries vegetables and flowers to Brussels creating a 100 tonnes capacity gap while Cargo Lux is mulling the cutting down of frequency on the Nairobi-Amsterdam route that it ships flowers and vegetables.

This is the Friday service, which will affect at least 100 tonnes of exports. Turkish Airline on the other hand has removed one freighter (per week service) from Nairobi - Maastricht, Netherlands route affecting flowers.

Airflo has on the other hand called for reduction on volumes delivered for exports as it removes 300 tonnes from its airfreight capacity.

“We are cognisant that a more constructive solution would have been lo secure and deploy additional capacity but this has not been possible and we have therefore been left with no option but to impose these restrictions,” the Netherland based airline said in a notice to customers.

According to exporters, there has been excessive roll-overs of between 200 tonnes - 300 tonnes per day with the few available airlines increasing prices from $2.30 (Sh297) per kilogramme to between $3.57 (Sh461) and $3.6 (Sh 465) per kilogramme.

The cheapest remains Kenya Airways, which is charging $2.30 but has limited capacity, exporters said.

The withdrawal of freighters is an annual trend witnessed during the peak festive season according to the Shippers Council of Eastern Africa (SCEA), as airlines make a kill from moving Christmas orders.

They mainly focus on Asia-USEurope routes, which also come with higher freight rates of up to $8 (Sh1,033) per kilogramme.

The shipper’s council has since called on the Kenyan government to allow other providers to bridge the resultant gaps, issue temporary landing rights to willing freighters while ensuring that chartered flights reserve 30 per cent capacity for locals.

It also proposes the landing of ferry flights which are essentially planes flying over the Kenyan airspace, to be allowed to land and pick perishables.

“The situation is dire,” SCEA chief executive Agayo Ogambi said yesterday.

He said the government should also interest local operators to operate limitless wet leases, which is getting traction in the USA and UK and more appealing than ownership and dry leasing.