Kenya’s sisal export earnings plunge

Kenya’s sisal export earnings plunge
Initially, the offer to buy all issued ordinary shares of the Nairobi Securities Exchange-listed sisal grower was slated for closure on May 13, 2015/FILE

NAIROBI, Oct. 13 (Xinhua) — The earnings from Kenya’s sisal exports declined by 11 percent in the first half of this year as the East African nation exported lower volumes of sisal fiber to major markets like Nigeria compared to the same period in 2022, according to a report from the Agriculture and Food Authority (AFA) released Friday.

AFA attributed the decrease in exports to delays in shipping the produce at the ports of major export destinations.

Kenya earned 17.7 million U.S. dollars during this period, with a sisal production of 11,432 metric tons, down from 20 million dollars and 14,806 metric tons in the same period in 2022.

The report from AFA also indicated that the country’s sisal fetched a better price, averaging 1.54 dollars per km, an increase from 1.33 dollars in the same period in 2022.

AFA said that this price change could be attributed to market forces related to supply and demand in the world’s sisal market.

According to the AFA data, Kenya earned 3.6 million dollars from sisal exports to Nigeria, its top export destination.

The majority of sisal exported from Kenya is grown by smallholder farmers who have transitioned to commercial farming as exports rise, leading to increased incomes.

Initially, these farmers grew sisal as a boundary crop and used it for soil conservation along contours. In 2022, Kenya earned 40.7 million dollars from sisal, up from 38 million dollars in 2021, making it one of the fastest-growing top foreign exchange earners for the country.

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