Kenya’s horticulture industry impacted by Greek debt crisis

The recent economic crisis in Greece, which has caused the devaluation of the euro, is having a major effect on the horticulture industry in Kenya. The Business Daily reports that Kenya sells 82% of its horticulture exports in European Union countries where payments are made in euros. Flowers accounted for 51.8% of the Kenyan export value in 2009.

The financial crisis in Greece has caused a devaluation of the euro which has impacted the exchange rate for other currencies, including the Kenyan shilling. The value of Kenya’s horticulture exports in 2009 was 71.6 billion shillings ($895 million), reports the newspaper. This represented a 14.8% decrease in quantity of exports and 2.9% drop in value in shillings.

Stephen Mbithi, CEO of the Fresh Produce Exporters Association of Kenya told the paper that exports to EU countries are generating lower earnings because payments in euros are weaker. He said producers who have focused on markets trading in dollars have seen an increase in earnings because of the higher exchange rate between the shilling and dollar.