Flower farms in Naivasha are now warning of mass relocation to either Ethiopia or Tanzania in the wake of the collapse of Economic Partnership Agreement (EPA) talks.
Kenya's push for an expeditious agreement between the East African Community and the European Commission over the long dragging trade negotiations suffered a major blow as nothing had been signed by yesterday.
An EAC delegation is in Brussels for three days of negotiations with the EU over the finalisation of the draft EPA deal that was agreed on by Kenya, Tanzania, Uganda, Rwanda and Burundi on Saturday.
Kenya Human Rights Commission and others demand extension of September 30 deadline to sign the pending trade deal between the East African Community and EU on the grounds that failure to reach agreement will hurt half a million horticultural workers, mostly women.
A senior Kenyan Government officer who wished not to be named confirmed that Tanzania has been dragging its feet in embracing the new EU trade deal. “This might prompt Kenya to sign the agreement alone," he said.
Industry players fear that the more than 120,000 tonnes of fresh cut flowers exported to EU from Kenya every year could face taxes of between eight and 12% if the EPA is not signed and ratified in three months’ time.