Kenya's Flower Power Under Threat: Urgent Reforms Needed to Save Floriculture Sector

By Bruno Aero Family Media Staff Writer

CEO  Kenya Flower Council (KFC) Mr, Clement Tulezi has sounded the alarm, urging the government to take immediate action to address crippling freight charges and tax burdens threatening the country's lucrative floriculture industry. Soaring air cargo costs and limited freight capacity are eroding profit margins, weakening competitiveness, and putting Kenya's position as a global leader in cut-flower exports at risk.

A Liling Industry

Kenya's floriculture sector is a significant contributor to the economy, employing over 200,000 people and supporting millions more through related value chains. However, the industry is facing unprecedented day-long challenges, including escalating freight charges and a complex tax regime.

Freight Costs Cripple Exporters

Since late last year, exporters have struggled to secure adequate cargo space, resulting in sharply higher freight charges that have left producers struggling to stay afloat. KFC CEO Clement Tulezi revealed that freight charges are up to $5 higher compared to other regional countries, a situation that demands urgent attention.

Tax Reforms Needed

Tulezi called for comprehensive tax reforms to ease pressure on flower producers, highlighting a persistent backlog of VAT refunds and multiple levies imposed at national and county levels. "The government should prioritise clearing tax refunds and implementing reforms that enable flower farms to meet their financial obligations," he said.

A Call to Action

Industry leaders are calling for coordinated action involving key government agencies, freight partners, and the Kenya Revenue Authority (KRA) to address these challenges. Proposed solutions include reviewing existing policies and establishing a one-stop processing zone to streamline regulatory and logistical procedures.

Preserving Kenya's Flower Power

As global competition intensifies and operational costs rise, timely intervention is critical to safeguarding Kenya's floriculture sector and preserving its vital contribution to the national economy. The government must act now to protect this iconic industry and the livelihoods it supports