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Horticulture, Agribusiness Pressed By Chaos

Horticultural farming in Kenya is under the brink of collapse after supply and processing in the factories were hampered following the post election violence which has displaced many workers and instill fear among farmers supplying the factories.

One of them is Tea production, which has already indicated that the production of the tea is likely to go down by over 10%.The Tea Board of Kenya managing director, Sicily Kariuki, says tea production is expected to fall because post-election skirmishes have rendered it impossible for farmers to transport their produce to the factories.

Most workers in tea growing zones of Kisii and Kericho in western Kenya have been forced to flee their work places as factories operate under capacity.Among the factories which have been affected with the border clashes along Borabu- Bureti District Border are Tombe, Sasisni, Nyansiongo, Kebirigo Itumbe among others.

According to Mr. Joseph Nyamwaro, a director with the Kenya Tea Development Authority (KTDA), over 20 factories are operating under capacity and risk being closed indefinitely after some of the farms were set a blaze by the wrangling communities.

Tea production stood at over 369 million kilogrammes last year, a rise of 50 million kilogrammes, compared to the previous year but earnings dropped to Ksh43 billion ($61.5 million) from Ksh47 billion.The 2007 out put is far high than 2006 and 2005. In 2005, production was 328 million kilogrammes.Tea officials project that this year, production growth will not be sustained owing to the violence that has affected tea-producing districts in the Rift Valley and Nyanza provinces..

An estimated 20,000 workers in Kericho, Bomet and Nandi, Kisii and Nyamira districts have also been displaced, causing an acute shortage of labour in plantations.

Unilever Tea Company was among the most affected tea firms in the country. Corporate affairs director, Francis Kaptich, told East African Business Week that the company incurred over Ksh60 million in losses following the crisis.

James Finlay Tea, George Williamsons, Lelsa, Sotik Tea and Kenya Tea Development Agency have also been affected.

According to TBK forecasts, export volume may to drop to about 320 million kilogrammes from 345 million kilogrammes registered last year.

For over one month, violence has forced tea farmers to flee the farms, leaving tea leaves with no one to pluck the tea leaves.

Small scale traders and farmers in Western Province are finding the going tough after several sugarcane farms were set ablaze by angry protesters in Mumias, Butere and Matungu.

Muhoroni MP, Prof. Ayiecho Olweny estimates that at least 10,000 hectares of cane have been destroyed.Farmers in western part of the country have been unable to access seeds and that majority of them are yet to deliver their grain to the National Cereals and Produce Board for fear of not being paid.

Transportation has also hampered the delivery of the grain to the depot since truck owners have retreated for fear of their trucks being set a blaze.

Those trading in perishable goods like fruit say they have lost over Ksh20 million since the eruption of chaos, with at least Ksh4 million ($57,142) every week.Despite the re-opening of Eldorets Kenya Co-operative Creameries, dairy farmers are losing millions of shillings as tonnes of milk go to waste on their farms.

With no vehicles to transport the product to various depots, and no refrigeration equipment, its obvious that the farmers are in for leaner times if things remain the same.

Flower farms dotting the dusty Naivasha town have not been spared either.Of immediate concern are the millions of shillings the sector risks losing in exports as Valentines Day approaches.

Getting to Western, Nyanza and Rift valley provinces is a daunting task due to the withdrawal of public service operators.

The lakeside city of Kisumu is estimated to have lost more than Ksh3billion in post election violence and a further Ksh0.9 million daily in uncollected revenues. Now the business community says that some of the damage may take up to 20 years to be repaired.