The Kenyan horticulture industry has secured a positive development with the UK’s temporary removal of the Global Tariff (UKGT) on cut flowers.
This two-year suspension, announced by the British High Commission, aims to streamline and reduce the cost of trade for flower growers across East Africa. Under the new policy, effective from April 11, 2024, to June 30, 2026, unlimited quantities of Kenyan flowers can enter the UK market tariff-free, even if they are shipped via a third country. This change is anticipated to benefit both Kenyan producers and UK consumers. Kenyan flower farms will enjoy increased export opportunities and potentially higher profits due to the eliminated tariff burden.
UK consumers can expect wider flower selections, more competitive pricing, and potentially greater availability throughout the year. The UKGT removal strengthens the existing UK-Kenya Economic Partnership Agreement which has been instrumental in saving Kenyan exporters over Sh1.5 billion annually in duties on various products including green beans and cut flowers. This has been effective since its implementation in March 2021. This policy shift further reinforces the UK-Kenya Strategic Partnership, a broader agreement fostering mutual economic benefits for both nations.
The impact of the UKGT suspension extends beyond Kenya. Major flower-producing nations like the neighbouring Ethiopia, Rwanda, Tanzania, and Uganda stand to gain from this improved trade environment. The King’s Trade Commissioner for Africa John Humphrey says the the UK’s action highlights the potential for a mutually beneficial trade relationship between the UK and East Africa. Trade statistics underscore the growing economic ties between the UK and Kenya. In 2023, over 400 UK businesses registered for VAT purposes imported goods from Kenya.
Overall trade volume between the two countries reached £1.4 billion (Sh228 billion) in the four quarters leading up to the end of Q3 2023. This represents an 11.1% increase, or £140 million (Sh22.8 billion), compared to the previous year. While the UK exported £63 billion (Sh103.6 billion) worth of goods to Kenya during the same period, a 6.5% increase, Kenya’s exports to the UK reached Sh125.79 billion reflecting a significant 15.1% growth. This policy change stands to benefit producers, consumers, and the overall economic relationship between the involved nations.
