The tightening of bans on air freight by European Union (EU) retailers, such as Lidl, has presented challenges for fresh produce exporters in Kenya. These measures, aimed at reducing carbon emissions associated with air transportation, have led to higher costs and delayed market access for Kenyan exporters.
Okisegere Ojepat, the chief executive of the Fresh Produce Consortium (FPC), highlighted the difficulties faced by exporters in meeting the stricter checks imposed by EU retailers. One major challenge is the lack of adequate infrastructure, particularly the absence of locomotives equipped with cold storage facilities, necessary for transporting perishable goods like fresh fruits and vegetables through the standard gauge railway to the ports for sea export.
The situation is compounded by the fact that Kenya Railways Corporation, responsible for the railway infrastructure, is facing financial difficulties. Official records indicate significant losses amounting to Sh33.56 billion in the fiscal year ending June 2023, making it the highest loss-making parastatal.
The absence of sufficient aggregation centers and cold storage-equipped locomotives poses significant barriers for Kenyan exporters seeking to comply with the EU's stricter regulations. Without adequate infrastructure and logistical support, exporters may face challenges in accessing EU markets, impacting Kenya's horticultural export earnings.
Source: www.businessdailyafrica.com