Kenya’s fresh produce sub-sector is staring at massive losses at the onset of the peak season, as several international airlines withdraw their freight services from the Jomo Kenyatta International Airport (JKIA) for “better pay” in other markets ahead of the festive season and lack of a binding agreement for the airlines to serve the local market.
The situation inflicting the horticultural sector has been compounded by the Red Sea crisis, which has increased the cost of transit through the Egyptian waterway, Suez Canal, by $200 per refrigerated (reef) container, and prolonged the transit period by 10 days as vessels take the longer route through the Cape of Good Hope in South Africa to Europe.
The horticultural sector generated KSh157 billion ($1.21 billion) in export earnings in 2023, according to data from the Agriculture and Food Authority (AFA).
The Shippers Council of Eastern Africa (SCEA), a private sector membership organisation representing the interests of importers and exporters, confirmed the logistics crisis at the airport affecting fresh produce destined for export to the European market and urged the government to act swiftly to alleviate the crisis by allowing temporary permits for freighters to fill the gap, currently estimated at 800 tonnes, and to consider wet leasing of cargo airlines.
Wet leasing is paying to use an aircraft with crew, fuel and insurance for a short period. “The situation at the JKIA is worse this week. We are over 800 tonnes less than the same week last year,” said Agayo Ogambi, SCEA CEO. “This results in delayed delivery, loss of markets, and affects the shelf life of the products, resulting in huge losses. We are asking the government to consider temporary approval of freighters to fill the gap.”
