The horticulture sector in Kenya and East Africa as a whole has received a boost as the United Kingdom (UK) has temporarily removed export tariffs for cut flowers to improve trade with growers all over the world.
The decision enables exporters from various countries to access the UK market for their flowers without facing any tariffs. Additionally, the elimination of tariffs extends to those who transport goods through a third country.
This development particularly favors East African growers, who often have no alternative but to ship their flowers through a third country or auction houses to reach the UK.
Such detours significantly cut their profits.
The UK has suspended the 8% duty on cut flowers for a period of two years, from April 11, 2024, to June 30, 2026. The move aims to increase trade and further strengthen the economic relationship between the UK and the rest of the world.
The East African region has become popular in the export of cut flowers.
In 2022, Ethiopia was the second-largest cut flower producer in Africa, making up 23% of Sub-Saharan African exports, while Kenya was ranked as the fourth-biggest exporter of cut flowers in the world, with 6% of global cut-flower exports.
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In 2023, the region continued to perform much better as the value of trade in cut flowers between the UK and Ethiopia was valued at Sh2.05 billion (£12.6 million), Rwanda at Sh118.50 million (£727,000), Sh136.74 million (£839,000) from Tanzania, and Sh179.28 million (£1.1m) from Uganda.
According to John Humphrey, UK Trade Commissioner for Africa, the relationship between the UK and the East Africa region will continue to grow and benefit both parties, especially with the removal of the tariff.
“The UK’s relationship with East Africa is rooted in mutually beneficial trade. This additional flower power will allow trade to bloom. We go far when we go together… or in this case, we grow far when we grow together, further reinforcing the UK’s commitment to the expansion of trade in East Africa,” he said.
