From Left KFC Chief Executive Officer Clement Tulezi
The Kenya Flower Council now wants the government to declare a state of emergency on cash flow constraints facing flower growers, warning that delays in the refund of value-added tax and multiple levies are threatening the sustainability of one of Kenya’s largest export industries.
KFC Chief Executive Officer Clement Tulezi said improving cash flow and providing certainty for growers is critical in ensuring the recent surge in smallholder participation strengthens the sector’s competitiveness, boosts rural household incomes, and reinforces floriculture as a resilient pillar of the economy.
The flower industry contributes about 1.6 percent to Kenya’s gross domestic product and accounts for nearly 20 percent of the country’s export earnings, supporting more than two million livelihoods directly and indirectly.
Cut flower export earnings reached KSh108 billion in 2024, underlining the importance of this sector amidst challenging global conditions.
The sector, however, still grapples with a difficult economic environment and reduced purchasing power in some of its most prospective export markets, issues that have surely constrained its growth curve and possibly dampen the ambitions of expanding exports past $1.4 billion by 2030.
The council has urged the government to accelerate the clearing of authenticated VAT refund arrears, abolish refund ceilings for major exporters and also permit VAT to be offset against other tax liabilities. These will, according to KFC, greatly enhance liquidity for growers and exporters, who can then reinvest and retain jobs and competitiveness in world markets.
Meanwhile, the council says it is leveraging the increasing involvement of smallholder farmers by supporting them in meeting both local and international certification standards as a strategy to enhance both market access and sustainability.
The concerns come even as the sector records increased participation by small and medium-scale growers, particularly women and youth, across counties including Nakuru, Laikipia, Kiambu, Meru, Uasin Gishu and Nyandarua.
KFC says unlocking cash flow and reducing the tax burden will be key to sustaining this inclusive growth and securing the future of Kenya’s floriculture industry.