The fresh produce sub-sector in Kenya is facing significant losses as international airlines withdraw their freight services from Jomo Kenyatta International Airport (JKIA) for better pay in other markets ahead of the festive season. The Red Sea crisis has also increased the cost of transit through the Suez Canal, affecting the horticultural sector. The Shippers Council of Eastern Africa (SCEA) has urged the government to act swiftly to alleviate the crisis by allowing temporary permits for freighters and considering wet leasing of cargo airlines.
Sources have revealed that key international cargo airlines such as Qatar and Turkish have removed some of their freighters from Nairobi, leading to a drop in capacity and increased airfreight costs. The reduced capacity has also affected airfreight costs, further impacting the sector.
The SCEA highlighted the lack of a binding agreement for airlines to serve Kenya, leading them to seek better pay elsewhere. Kenya’s economy heavily relies on agriculture, with horticulture being a major source of foreign income through exports. Despite the challenges, Kenya remains a significant player in global fruit and vegetable production and exports.
Overall, the sector is facing a crisis that requires immediate action to prevent further losses and maintain Kenya’s position as a key player in the global market.
[ad_2]
Source link