South African private equity fund Agri-Vie has bought a Sh430 million (
The Nanyuki-based flower company said it will use the cash injection to finance expansion into Japanese, Middle-Eastern and Australasian markets. The company is also seeking to expand its product range.
"We were attracted to making this investment in Kariki by its reputation as a high quality supplier, operational facilities and because it is an efficient and well-managed business," said
Agri-Vie also cited
The investment into the Kenyan flower firm comes in the wake of the release of earnings figures for the industry for 2013, which showed that that cut flower exports dropped by 13.9 per cent from Sh65 billion in 2012 to Sh56 billion.
Weaker demand resulting from the European economic crisis has hurt flower earnings from
READ: Horticulture export earnings drop again
Additionally, a relatively strong shilling performance versus the dollar last year exerted pressure on industry earnings, by narrowing the gap between expenses and revenues.
On Tuesday, the industry suffered a setback after one of
The flower firm, which is associated with
Flower firms also face an anxious wait alongside other horticulture producers to see whether new Economic Partnership Agreements will be agreed with the
Failure to strike a new deal could see the local horticulture products exported to the EU attract higher export tariffs, making them less competitive in the lucrative market.
The flower industry in
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