Kenya’s fresh produce sector faces significant losses as international airlines withdraw their freight services from JKIA. The Red Sea crisis and lack of a binding agreement for airlines have worsened the situation. The horticulture sector generated KSh157 billion ($1.21 billion) in export earnings in 2023. The SCEA highlighted the logistics crisis at the airport, urging the government to intervene by allowing temporary permits for freighters.
High Demand and Challenges
The reduced capacity of cargo airlines like Qatar and Turkish is causing airfreight costs to rise. These airlines are seeking better pay in other markets, impacting the Kenyan market. The global demand and pay for services in other regions are attracting airlines away from Kenya. The lack of binding agreements is also a challenge affecting the country.
Global Export Share
The fresh produce logistics crisis affects Kenya’s economy rooted in agriculture. The country’s share of global exports of fruits and vegetables in 2023 was significant. Avocado, pineapples, mangoes, apples, oranges, and raspberries were the top fruit exports. Kenya’s production of fruits like bananas, avocados, mangoes, and vegetables like tomatoes, cabbages, and kales were prominent in 2023.
[ad_2]
Source link
