NAIROBI, Kenya- Kenyan fresh produce exporters are facing significant disruptions, urging for swift resolution of the Red Sea tensions that have drastically increased the cost and time required to transport goods to the European Union.
The geopolitical crisis has not only delayed shipments but also eroded profit margins, forcing exporters to explore alternative markets and shipping routes.
At the recent Kenya-EU Economic Partnership Agreement (EPA) forum in Nairobi, Hosea Machuki, CEO of the Fresh Produce Exporters Association of Kenya, highlighted the challenges the sector is grappling with.
According to Machuki, exporters from Kenya and Tanzania have been forced to adopt drastic measures to keep their businesses afloat, such as seeking alternative markets in regions like India, China, and Gulf Cooperation Council (GCC) countries.
“The situation has pushed us to budget-conscious markets, some with difficult payment terms, particularly for smaller exporters,” Machuki explained.
The Red Sea tensions have doubled the transit time to key European markets, impacting the quality of perishable goods and creating logistical headaches.
The ongoing Red Sea conflict has led to the use of alternative routes, with shipping times jumping from the typical 18-20 days to a staggering 40-45 days.
This has particularly affected small-scale avocado producers, who rely on the European market, which previously accounted for 70pc of Kenyan fruit exports. As demand dwindles in Europe, small producers are seeing their revenues shrink significantly.
Machuki noted that while exporters have extended their seasons and are shipping produce under suboptimal conditions to mitigate supply gaps, the rising costs and reduced efficiency are unsustainable in the long term.
“We urgently need government intervention to resolve the Red Sea crisis and reopen access to the European market,” Machuki urged.
The Red Sea tensions stem from ongoing Houthi rebel attacks on commercial ships, as part of their stance against Israel in solidarity with Palestinians amid the Israel-Hamas conflict.
The U.S.-led naval coalition has responded with strikes on Houthi military sites, escalating the conflict and further disrupting shipping lanes.
As the crisis continues, the Kenyan horticulture sector’s resilience will be critical in navigating the uncertainty.
