Flower Investors are increasingly focusing on relocating to Uganda where they say the cost of doing business is much lower and favourable as opposed to Kenya where they have been operating.
Kenya Media reports that the Kenya Flower Council (KFC) is worried of the costs of doing business in Kenya, even when the sector’s export returns continue to plunge due to the financial crisis in the Eurozone.
KFC is also alarmed by rigid tax legislation, declining revenues, climate change and political instability in Kenya.
“Investors are adopting a wait and see attitude,” says KFC Chief Executive Officer, Jane Ngige. Some have shown an interest in Uganda because it is presently looking more attractive than Kenya.”
Details from KFC indicate that the sector registered a steady growth of about 10 per cent between 1995 and 2008 in tonnage, but presently there is a 1.7% slowdown.
“The reasons for this are several but a reduction in investment due to the Kenyan currency (shilling) remaining stronger than the pound and euro increases input costs, fuel, airfreight, fertilisers, chemicals and labour wages,” says Richard Fox, Director of Finlays Horticulture.
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