Introducing seed based propagation in the Kenyan cut flower sector Kenya is one of the largest exporters of cut flowers. The local flower market in Kenya is maturing and deepening in the sense that, as a spin-off of primary production, more and more segments of the chain are being developed and commercialised in a professional manner. Besides, service related activities are initiated and brought to international standards (agro-inputs, packaging, laboratory services, integrated pest management, etc).This project aims to capitalise on these dynamics by establishing a local seed-based seedling propagation business for selected cut flowers, in particular Lysianthus. This will replace expensive overseas imports of seedlings on which Lysianthus growers in Kenya currently totally depend.The project will construct a modern fully-integrated seedling propagation unit (4,000 m2) at the premises of Stokman Rozen Kenya Ltd in Naivasha. Production will be 400,000 seedlings per week.Applicant Bloom B.V. from Amstelveen is a flower marketing company and was established in 2005. The local partner is Stokman Rozen Kenya Ltd (1995) from Naivasha. Partners will not establish a joint venture company but will sign a joint business agreement.The project is new for Kenya and will bring in new technology and knowledge. It is an important step forward in chain management in the flower sector. It will replace costly imports of seedlings, thus contributing to a more competitive sector, and reduces the possibility of bringing plant diseases into the country.Corporate Social Responsibility (CSR)The project will comply with Stokman's CSR policy, Kenya Flower Council standards and MPS. Production will be such that higher-up in the chain, flower growers can comply with Fair Trade standards if so required (Note: the scope of Fair Trade certification does not (yet) include plant material propagators). The project will be NEMA-certified, which includes an assessment of occupational health and safety and environmental impact.Impact•	Employment and working conditionsDuring the project, 42 people will be employed, of whom 5 are medium/higher staff. This will be respectively 75 and 6, two years after the project. In addition the project will employ 10 seasonal staff (15 during the 2 year follow-up). Wages are higher than the legally minimum wage and workers have attractive secondary benefits, like: overtime pay, protective clothing, housing allowance, leave travel allowance, paid annual leave, free basic medical services, schooling for workers' children, HIV/AIDS awareness and counselling.•	Innovation/Transfer of knowledgeMost training related to the production or propagation process is new to the country. Specific agronomic knowledge will be provided by Ball USA/the Netherlands. Modern technologies and production concepts will be introduced. The project will pay ample attention to quality control and certification (GlobalGAP/MPS). The training package foreseen in this project will cover all this and shall bring new knowledge and skills for employees across the organisation.•	Chain effectsThe project is expected to have a positive impact on the chain or sector. It will allow the sector to diversify, will make it more innovative and will reduce costs for growers of Lysianthus and related varieties. It will also reduce the risk of bringing in plant diseases through imports. All these benefits will make the sector more competitive. Other beneficiaries of the project are local suppliers of substrate, fertilizers, micro-elements/organisms and pesticides.•	EnvironmentThe project will comply with the requirements of NEMA and GlobalGAP/MPS. Both pay much attention to environmentally friendly production methods. E.g. under GlobalGAP/MPS the use of pesticides and fertilizers is subject to strict regulations. Stokman Rozen has a purification system for treatment of waste and irrigation water. This system will also be used for this project.The local production of seedling will replace weekly imports thereby reducing air cargo movements.•	Position of womenAs much of the work in a propagation unit will require accurateness, care and dedication, the majority of employees (75%) will be women. The project will have non-discriminatory labour policies for female staff. Introducing seed based propagation in the Kenyan cut flower sector by establishing a fully integrated seedling propagation unit for Lysianthus.