September 2010 Issue 1

Court puts on hold implementation of new NHIF contributions.
The Industrial court effectively put on hold the implementation of the new NHIF rates until the matter is heard and determined,barring enforcement of the proposed enhanced deductions
Central Organization of Trade Unions (COTU) had sought orders restraining NHIF from enforcing or implementing its new revised rates contained in Legal Notices No. 107 and 108 of 2nd July 2010 until further consultations with stakeholders were carried out.
The NHIF had argued that the Industrial Court lacks the jurisdiction to hear and determine the matter as the issue of the new rates was not, in their view, an employment or labour issue for which the Industrial Court can adjudicate upon.
In its ruling, the Court held that it has jurisdiction to hear and determine the matter as the issues of the increased deductions from employees wages/salaries and how the contribution rates are arrived at arise out of employment. The Court also noted that issues of the social protection of employees (which include medical insurance) ought to be addressed under the tripartite arrangement (involving the workers, employers and the government) and as such, whenever that arrangement was threatened or was being disregarded, the Industrial Court had jurisdiction under the Labour Institutions Act to intervene.
After delivery of the ruling the Court further directed that:
(a) NHIF and FKE be granted leave to file and serve their Replying Affidavits/Grounds of Opposition, if any, within 7 days;
(b) The matter be heard on 10th September 2010.

(c) The orders sought by COTU are granted pending the hearing and determination of the matter.

Redlands Roses Ltd issued with fairtrade certificate

Redlands Roses Ltd, a member of Kenya Flower Council has been issued with a Fairtrade certificate valid for three years.
Redlands Roses put a lot of efforts into the successful certification process. This means that the farm is Fairtrade Certified for Flowers and Plants and is allowed to trade these products under Fairtrade label.
Redlands Roses specialize in growing and exporting T-Hybrid and spray roses grown in greenhouses on a 100% hydroponic system with full recycling of water.
Red Lands Roses is certified by other international standards such as : Max Havelaar, Global-Gap, MPS-Environmental label, Flower Label Program (FLP Germany) and Kenya Flower Council.
Under the management of Dr.Isabelle Spindler, Managing Director Red Lands Roses believe in quality, team work, communication, commitment, integrity, innovation.

UFO Suppliers BV launches a new website

UFO Supplies BV, an associate member of Kenya Flower Council has launched a new website They have now installed an interactive flower search engine which will help in selecting new crops and or varieties. Various selection criteria will help to narrow down their portfolio. You can search on colour, fragrance, berry – hips, foliage crops but also investment level and breeder.

Interplant test Facility

Recently, Interplant Roses opened its own test facility at the Flower Business Park in
Naivasha, Kenya. This means that the existing contract with Sunrose Nurseries Ltd. Has come to an end. Interplant has expressed their appreciation for the great working relationship with Sunrose over the past fifteen years. As from 15th of August 2010 Interplant will be representing Natural Selections Ltd. In East Africa, as well as continued representation of Grandiflora Nurseries pty Ltd.

Kenya France Trade Mission updates
The preparatory meetings on the Kenya France Trade Mission are in top gear and the 8th preparatory committee met on 3rd September 2010. The Kenya Flower Council participates proactively in the meetings.
The event will be held from 21st to 24th September 2010 in Paris. 23rd September 2010 is fully dedicated to horticulture with visit of Rungis Min Market and one to one appointments.
All the participants will pay a registration fee of 95 Euros to the Ministry of Foreign Affair.
Members interested in participating in the trade mission are requested to contact KFC and provide the following details for visa processing. The details will be forwarded to the ministry of Foreign Affairs by 7th September 2010 who will organize issuance of visas through the French Embassy in Kenya.
 Name
 Birth date
 Nationality
 Passport Number
 Date of issue
 Expiry Date
 Company name
 Company Activity
 Contact expected in France
 Insurance

In case you want to send your flowers for decoration of the event please inform KFC. A joint shipment will be organized at a later date.
Promotional materials.
You are invited to provide promotional material which will be translated into French by the Kenya Embassy in France.
Travelling and accommodation
All participants are expected take care of their travel and accommodation expenses. The Ministry of Foreign Affairs will cater for the ground transport in Paris
For any additional information needed please contact KFC.

Upcoming events
1. Russian Flower Show in Moscow Russia 2nd-5th September 2010
2. Naivasha Horticultural Fair 10th and 11th September 2010
3. Kenya France Trade Mission in Paris France 21st-24th September 2010
4. International Hortifair, Amsterdam 12th-15th October 2010
5. IFEX in Makuhari Messe Japan 28th-30th October 2010
6. International Floriculture Trade Fair 3rd- 5th November 2010

CDE partnering with BIO to encourage sustainable economic development in ACP countries.
The Centre for the Development of Enterprise (CDE) and Belgian Investment Company for Developing Countries (BIO) are partnering together to encourage sustainable economic development by granting finances specifically tailored to the Small and Medium Enterprises in ACP countries.
In this view, Mrs Simone Verbraeken of BIO will be in Nairobi from 7th to 9th October 2010 to meet with prospective companies that need project financing.
The Belgian Investment Company for Developing Countries (BIO) is a Development Finance Institution established within the framework of the Belgian Development Cooperation. Their mandate is to stimulate the growth of private enterprises in developing countries – among which KENYA – through the provision of FINANCE.
BIO finances local companies with a need for medium to long term finance for the start-up or expansion of their activities. Some characteristics of their intervention:
• BIO provides medium and long term loans, guarantees and buys shares in local business
• Maturity of the finance can range from 4 to 12 years
• Negotiable grace period (regarding pay back of loan) of up to three years, depending on company/ project needs
• Currency: EUR, USD or local currency (Kenya Shilling)
• BIO intervention ranges from 400,000 EUR (or equivalent in USD, Shilling) to 3 million EUR.
• BIO finance is limited to 50% of company’s total finance needs, after investment
• BIO accepts about 1/3 of the company finance needs financed through equity (for existing companies)
• The commercial conditions (interest rate, fee) of BIO finance are based on the risk profile of each individual case, as well as the term of finance, the currency etc.
• BIO finances companies active in agriculture, agro-industry & manufacturing and services sector
• BIO assesses the business on financial performance, corporate governance, environmental & social policy and lasting benefits to the local economy
• BIO analyses a finance request on the basis of a business plan + the company’s historical figures of preceding 2-3 years (for existing companies)
• BIO provides finance, from its office in Brussels, directly to the local company
In addition BIO can also co-finance (in the form of a subsidy) feasibility studies, and –under certain conditions- financially support (in the form of a subsidy) investee companies’ external technical assistance needs.
You can find more information on BIO and its activities on its website
BIO will meet individual entrepreneurs or companies that need finance for their investment projects, and that can submit a business plan in this respect (today or at a later stage).
If you are interested to meet BIO and check whether your investment project would be eligible for finance, please contact Mrs. Simone Verbraeken, Senior Investment Officer at BIO:, or + 32 (0)2 778 9903 or mobile + 32 (0)473 71 09 45 so that a meeting can be arranged on one of the above mentioned days in Nairobi, at the office of Centre for Development of Enterprise (CDE), Brookside Close off Brookside Grove, Westlands, You can also contact CDE to make an appointment.

New auction intervals for the flower clocks at FloraHolland Aalsmeer as of 2 September
By: FloraHolland news
On 2 September 2010, the auction intervals for FloraHolland Aalsmeer’s cut flowers clocks will be changed.
Why change the auction intervals?
The new auction intervals are in line with those of FloraHolland Naaldwijk and Rijnsburg.
This creates more uniformity and is an important step towards the synchronization of the auction times at the export locations.

Additionally, these auction intervals will reduce the purchasing pressure between 6:00am and 8:00am for buyers in the auction room and for those who use Remote Buying,
as each cut flowers clock at the export locations shares these breaks.
This will allow purchasers to process the available information better, which will benefit the sale of your products.

The new auction intervals are listed in the table below:

Day Short auction interval Auction interval
Monday 7:00am – 7:10am 8:10am – 8:30am
Tuesday 7:00am – 7:10am 8:10am – 8:30am
Wednesday* 7:00am – 7:10am 8:10am – 8:30am
Thursday* 7:00am – 7:10am 8:10am – 8:30am
Friday 7:00am – 7:10am 8:10am – 8:30am

* The following applies for Wednesdays and Thursdays:
The short auction interval will always be held unless the expected end of auctioning time for the last clock is 7:20am.
If the expected end of auctioning time for the last clock is 8:30am, no auction interval will be held.

The Russian Smog
Moscow, and more regions of Russia, recently experienced heavy smog, generated from the big number of uncontrolled fires, due to the heat wave. Surprisingly, Dutch exporters do not feel real negative impact on the flower business in Moscow, so far. Several exporters, largely trading with Russia, were interviewed, and all said they don’t recognize any but marginal regression in quantities of flowers sold. None of them could explain these phenomena, seeing the fact that the city looks like a ghost town during most of the days. Some explanation can be found in the fact that not all the flowers stay in Moscow; part of the shipments are destined to other Russian cities; but yet…

However, Russian rose growers around Moscow felt the impact of poor sunlight and toxic gases in the air. They grow smaller flower buds, and slower ripening.

Source: Vakblad voor de Bloemisterij

Rhein-Maas Auction Prepares for Takeoff
By: FloraHolland
The new merged auction, joint ventured by FloraHolland and the German Landgard, is almost ready to start operating in Herongen, Germany. The opening date is set on November 2; but as early as from October 4 the Herongen auction will run with the new equipment and systems; so that when the supply and buyers from FloraHolland’s Venlo, and Landgard’s Lüllingen will join on November 2 – the new operation has been already ‘running-in’.

During the coming period the current suppliers of the three merging auctions are receiving personal letters confirming their participation into the new partnership, and their growers number. In principle, regulations regarding contribution and the like in the new auction for FloraHolland members remain unchanged.

Veiling Rhein Maas is already a company under the German law (GmbH & Co. KG). The list with names for the management functions and of Venlo and Lullingen employees that will join was completed and published.

A ‘focus group’/’sounding-board group’ of growers, composed of suppliers of the merging organizations, was formed, and is acting in advising the management in setting-up the new regulations, working methods, and working schedules. This forum will meet quite often during the coming weeks. Also some gathering events, open to all users of the auction, are planned for the coming weeks.

A ‘Trade Committee’, composed of buyers/traders of the merging auctions was formed, and elected a spokesman. This forum discusses with the management about working schedules, allocation of seats in the new tribune, climate control in the auction’s halls, etc.

The new, expanded tribune is ready and the construction of new buyers’ stores is on schedule. However, the 20,000 m2 of new built area are not enough to fulfill buyers’ demand. Meaning: more buyers are expected in the new auctions, than the number of buyers at the three merging auctions. Working room is guaranteed to traders moving from Venlo and Lullingen; newcomers are on a waiting list.

At the moment they are working on the design of the ‘corporate house style’ for Veiling Rhein-Maas. A series of communications will keep the users updated, to ensure a smooth start in November 2.

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