The state has reiterated its plan to link more local tea, coffee and flower farmers in the country with global marketing firm, Fairtrade to up returns and boost revenue growth.
This will be crucial in narrowing the country’s trade gap that keeps widening despite increase in export earnings in recent past, said Kenya National Chamber of Commerce and Industry (KNCCI) president Erick Rutto.
Speaking during the launch of the three day global Fairtrade business summit in Nairobi, Rutto said partnerships with such an organisation that has global market reach will propel the country’s key exports.
“This, while ensuring the plight of local farmers on price, premiums and principles such as traceability and transparency is well addressed,” Rutto said.
Data by Kenya National Bureau of Statistics (KNBS) shows despite the 17.4 per cent growth in export earnings for the year ending 2022 to Sh873.1 billion, trade deficit still widened to Sh1.62 trillion.
This was up from Sh1.41 trillion in 2021, when the value of imports was at Sh2.15 trillion, which was a 30.9 per cent increase from Sh1.64 trillion in 2020.
The Economic Survey report read that the growth was not sufficient to offset the growth in imports, resulting to the widening of the balance of trade.
Agricultural products are central to Kenya's export industry with horticultural and tea being the most important.
Tea recorded the highest earnings of Sh163.3 billion due to improved international tea prices and was the leading export commodity in 2022.
Other top earners were horticulture at Sh152.3 billion, apparel and clothing Sh47.3 billion, coffee Sh37.1 billion and Sh29.4 billion from titanium ores.
Other export items include textiles, coffee, tobacco, iron and steel products, petroleum products, cement.
The country’s main exports partners are UK, Netherlands, Uganda, Tanzania, United States and Pakistan.
Also speaking during the summit, Fairtrade CEO Sandra Uwera said they are committed to enhancing responsible sourcing of their products to ensure the farmers are sustainable enough to stay in business.
“Responsible supply chain practices begin with responsible sourcing. Seeing suppliers not only as a provider of a material, but as a key partner to drive quality products which are produced sustainably for consumers,” Uwera said.
“For farmers and workers, working together will ensure we arrive at a product under fair labor conditions, with respect for the environment and a commitment to community development.”
She further noted the importance of prioritising consumer influence as a powerful way to impact sustainability.
She says choices consumers make have a direct impact on the demand for sustainable products. By educating consumers about the importance of responsible sourcing and providing them with sustainable options, businesses can drive a shift towards more ethical and sustainable consumption patterns.
"When consumers understand the impact of their choices on the lives of producers and the environment, they are more likely to choose sustainably sourced products."
