SUSTAINABLE LOGISTICS PRACTICES AND PERFORMANCE OF THE FLORICULTURE EXPORT SECTOR IN KENYA

Abstract

The performance of Kenya’s floriculture export sector has been declining in recent years. In 2023, total horticulture export earnings dropped by 6.8%, with flower exports contributing significantly to this decline. The volume of cut flowers exported fell from 210,000 metric tons in 2021 to 185,000 metric tons in 2023. The general objective of the study is to determine the effect of sustainable logistics practices on floriculture export sector in Kenya. Specifically, the study sought to determine the influence of sustainable packaging on performance of the floriculture export sector in Kenya, and to establish the effect of route optimization on performance of the floriculture export sector in Kenya. This study was anchored on Resource-Based View (RBV) Theory and Systems Theory. This study used descriptive research design. This study targeted the floriculture export companies in Kenya in Kenya. According to Agriculture and Food Authority report (2024), there are 74 Registered floriculture export companies in Kenya in Kenya. This study targeted heads of logistics and procurement department in these companies hence the total target population was 148 respondents. The researcher used Stratified sampling. Yamane Formula (1967) was used to calculate the sample size. A sample size of 108 respondents participated in the study. Data from questionnaires were coded and analysed using the latest Statistical Package for Social Sciences (SPSS) computer software. The study employed mixed methods data analysis by applying the use of descriptive and inferential statistics. Quantitative data collected was analysed by the use of descriptive statistics which include percentages, means, standard deviations and frequencies. Pearson correlation analysis was used to test the strength and the direction of the relationship between the independent and the dependent variables. The study concludes that sustainable packaging has a positive and significant effect on performance of the floriculture export sector in Kenya. In addition, the study concludes that route optimization has a positive and significant effect on performance of the floriculture export sector in Kenya. From the results, the study recommends that floriculture export sector in Kenya should integrate real-time GPS and data analytics systems to streamline transportation from farms to export hubs and airports. By using intelligent route planning technologies, exporters can reduce delays, minimize fuel consumption, and ensure that flowers reach their destinations faster and in optimal condition.

Key Words: Sustainable Logistics Practices, Floriculture Export Sector, Sustainable Packaging, Route Optimization