Global air cargo expansion will sharply drop to two percent in 2019 compared to this year’s 10 percent growth, according to a report released last week by the International Air Transport Association (IATA).
This year Kenya imposed 25 percent import tariff on Tanzania for products such as wheat flour while Dar es Salaam also issued a 25 percent duty on Kenya’s edible oils and cement.
Besides increased tariffs on imports, Kenya is also set to report slowed growth in its air cargo next year due to a shortage of supply of flowers to international markets.
Horticulture exporters have already issued warning that it expects a shortage in flower exports due to delay in production. This will affect the supply to Europe, the country’s biggest market for flowers, during the peak season from December to February.
Moreover, flower export companies such as Oserian flower farm have already issued a notice to their stakeholders announcing that there will be a delay in flower production in the peak season due to delay in fertiliser supply to farmers.