FPEAK pushes for key reforms at 5th Presidential Roundtable on Trade and Industry

KENYA – The Fresh Produce Exporters Association of Kenya (FPEAK) joined other private sector leaders at the 5th Presidential Roundtable on Trade and Industry hosted by the Kenya Private Sector Alliance (KEPSA) at Ole Sereni.

The meeting reviewed progress on previous commitments and addressed emerging concerns in investment, trade, and industry.

FPEAK presented several pressing matters that continue to affect exporters. These included the need for more cargo space during peak seasons, the introduction of additional direct export flights, and concerns about an unpredictable tax regime.

“The duty on Kraft paper and the UCR charges have significantly increased costs for exporters,” a representative noted.

President William Ruto instructed the Cabinet Secretary for Trade to work with the National Treasury to fast-track solutions.

Export market access also took center stage, with participants calling for reciprocal trade arrangements with China, India, Canada, and Turkey. Bilateral talks with China and India are already ongoing.

County-level levies and cess on export crops were also highlighted as a concern. The President pledged to address the matter at the upcoming Intergovernmental Forum.

Progress and persistent gaps

Cross-cutting issues such as the high cost of energy and the ease of doing business were discussed at length. KEPSA reported that 70 percent of the private sector’s recommendations from the previous session have been implemented or are in progress. “We will review the outstanding issues during the next roundtable in December,” KEPSA stated.

The horticulture sector remains a major contributor to Kenya’s export earnings, with the European Union accounting for about 45 percent of all exports. In 2024, total horticultural export earnings to the EU reached KES 71.8 billion.

Italy alone imported KES 1.4 billion worth of produce, equivalent to over 213,000 tonnes. However, fresh vegetable earnings dropped sharply from KES 51 billion in 2023 to KES 23.4 billion this year, largely due to pesticide-related concerns.

Kenya’s top exports include roses, avocados, mangoes, pineapples, lemons, raspberries, French beans, snow peas, chillies, basil, and peppermint. While the EU remains the main market, demand is growing in Asia, North America, and the Middle East.

External pressures and sector resilience

Exporters continue to face rising production costs, strict international pesticide rules, and the effects of climate change on crop consistency. Despite these challenges, industry players are diversifying into new markets to reduce reliance on Europe.

“FPEAK remains committed to working with KEPSA and other business member organizations to ensure a competitive and enabling environment for Kenya’s horticultural exporters,” the association reaffirmed after the meeting.

With trade negotiations in motion and commitments made at the roundtable, stakeholders expect that December’s review will provide a clearer picture of progress on the sector’s most pressing concerns.

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