Kenya's horticultural industry is a model for the east African region, a World Bank official said on Wednesday.Country Director Jonathan Zutt said that the rest of the region could learn from Kenya's competitive horticultural industry."As a result of good government policies, Kenya's horticultural industry has achieved international standards worth emulating by the east African countries," he said on the sidelines of the launch of the Devolution Report in Nairobi. For most common products include fresh fruits, vegetables and cut flowers, he said, due to improved packaging technologies and communication, Kenya has been able to tap into the lucrative trade.Kenya Flower Council data indicates that in 2011, the sector earned 1.08 billion U.S. dollars, making it one of the largest foreign exchange sources. According to the ministry of agriculture, the country exported 382,638 tons of fresh produce last year.Zutt said the World Bank has allocated 120 million dollars to help farmer groups in Kenya improve their productivity."Kenya has been able to achieve the strict phyto-sanitary import requirements of the EU markets, an issue that its neighbors are still grappling with," he said. "As a result, the country is able to meet supply requirements regularly throughout the year," he said.He noted that the logistics to transport the product to the airport is also well developed and has attracted many investors into the sector.The director noted that there is still a lot of room for expansion of the sector. "Production of horticulture has gradually shifted to sub Saharan Africa areas due to lower cost of production," he said.He noted that Netherlands which hosts the largest flower auction is a cold and wet country and is therefore costly to produce horticulture.World Bank Kenya Economist Fred Owegi added that Kenya's horticulture industry is doing well but could perform even better under existing circumstances."There is still huge potential to increase value addition of exports as well as acreage under cultivation," he said. Owegi noted that Kenya's equatorial climate is better suited for horticulture due to availability of sunlight throughout the year.

"Other countries don't have weather that is conducive to horticulture production which is sensitive to climate conditions," he said. The economist said that the biggest challenge for the cut flower industry is access to water.