Trade related barriers to Kenya's exports of fruits and vegetables to the European Union

Abstract

Horticulture has been identified as the fastest growing agricultural sub-sector in Kenya, second only to tea as foreign exchange earner. The sub-sector contributes significantly to the Gross Domestic Product (GDP) and employs over one million people directly and indirectly. The horticultural produce exports have also been rising despite the increase in implementation of tariffs in the global market especially in the European Union (EU). The flower industry has been the mainstay of horticultural exports, but recently, the market for fruit and vegetables exports has expanded. This paper highlights the barriers that Kenyan export organizations face in their endeavour to penetrate the European fruit and vegetable markets A total of 80 exporter organizations were selected using the stratified random sampling procedure out of which 58 organizations returned fully-filled questionnaires within the prescribed period. The data was analyzed using descriptive statistics in the form of percentage tables and pie charts. The study noted that both the tariff and non-tariff barriers affected the export of fruits and vegetables to the EU market. The barriers both tariff and non-tariff resulted in an increase in the export costs and made the exports to become uncompetitive in the EU market due to their quality or cost. Despite this, the study also noted that the Kenyan government had initiated some programmes to address the barriers and enable the exporters compete effectively in the EU market. Based on the findings of the study, it is recommended that there is still need for the government to intervene further especially by reducing government taxes, offering subsidies and providing information·to the exporter organizations. In addition, the export organizations need to invest in programmes that will assist them in overcoming the barriers such as adherence to the required standards. These initiatives will enable the exporters to compete effectively in the EU market and thus earn the country the much needed foreign exchange.