The Kenyan government intends to lower Value Added Tax (VAT) on horticulture inputs from 16 percent to 8 percent, a strategy designed to reduce production expenses and improve the competitive edge of the nation’s flower sector.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui explained that the suggested tax cut forms part of broader initiatives to tackle difficulties confronting flower cultivators and exporters, such as elevated air freight charges, restricted cargo space, postponed VAT reimbursements, various taxes, levies, and impediments to market entry.
Addressing attendees at the 13th International Flower Trade Exhibition (IFTEX) 2026, Kinyanjui acknowledged that the issues raised by the sector are valid and necessitate pragmatic, enduring remedies.
“As the government, we are attentive to these concerns and dedicated to collaborating with the industry to identify practical and sustainable solutions,” he stated.
VAT currently applies to horticulture inputs including fertilizers, chemicals, and equipment utilized in flower cultivation. Cultivators have persistently voiced apprehensions about delays in VAT refunds, with the national government currently indebted to flower farmers in excess of Sh10 billion accumulated throughout the years.
Although the Ministry has suggested reducing VAT from 16 percent to 8 percent, participants along the flower value chain have advocated for these inputs to be zero-rated.
Kinyanjui indicated that the government will maintain dialogue with pertinent institutions to enhance VAT refund processes, simplify regulatory frameworks, minimize superfluous compliance expenditures, fortify logistical infrastructure, and broaden market access prospects for Kenyan goods.
“These initiatives are intended to guarantee that Kenya continues to rank among the most attractive locations for floriculture investment and commerce,” he emphasized.
He observed that the international flower marketplace is undergoing swift transformations, with consumers progressively demanding evidence of sustainable production methods, while retailers are imposing stricter traceability requirements and adherence to environmental benchmarks.
“Governments are implementing novel environmental and sustainability directives, whereas purchasers seek collaborators capable of consistently meeting elevated standards while preserving dependability and excellence,” he elaborated.
Kinyanjui highlighted that Kenya stands as Africa’s foremost flower exporter, among the globe’s principal suppliers of roses, and a dependable vendor to markets spanning Europe, the United Kingdom, the Middle East, and Asia.
The floriculture sector, he added, has emerged as an emblem of Kenyan superiority, adaptability, and competitiveness in the international arena.
This industry generates approximately Sh110 billion yearly in export revenues, provides direct employment to over 200,000 individuals, and sustains millions of livelihoods nationwide.
Women constitute more than half of the workforce in Kenya’s flower farms, establishing this sector as a substantial catalyst for economic empowerment.
The Cabinet Secretary noted that cultivators and exporters have recently encountered escalating air freight expenses, heightened prices of essential agricultural inputs, logistical interruptions, and mounting compliance expenses associated with novel market prerequisites.
“Our flower industry enjoys worldwide recognition for ethical production practices, sustainability leadership, environmental stewardship, and traceability frameworks,” he affirmed.
He emphasized that sustainability represents a collective obligation throughout the value chain. If cultivators are anticipated to persist in investing in superior standards, climatic adaptability, responsible production methodologies, and compliance with progressively stringent market prerequisites, these endeavors must be accompanied by practical and sustainable pricing structures.
Kinyanjui stated that the trajectory of floriculture will be determined not solely by production quantities but also by innovation, sustainability, resilience, and collaboration.
Christine Chesaro, Director of Horticultural Crops at the Horticultural Crops Directorate (HCD), affirmed that Kenya’s horticulture sector continues to rank among the nation’s primary foreign exchange generators and a substantial contributor to employment, rural livelihoods, and economic advancement.
During 2025, Kenya exported 457.7 thousand tonnes of horticultural products valued at Sh143.78 billion. Cut flowers constituted 55 percent of this valuation, reaffirming floriculture as the dominant sub-sector within Kenya’s horticulture domain. Fruits represented 30 percent, while vegetables comprised 15 percent.
“Our nation maintains its position among the world’s foremost exporters of cut flowers, accessing 143 international markets in 2025,” Chesaro reported.
Export revenues from cut flowers climbed from Sh72.1 billion in 2024 to Sh81.3 billion in 2025, while export volumes expanded from 102.5 thousand tonnes to 130.6 thousand tonnes during the corresponding timeframe.
She observed that the European Union continues to be Kenya’s primary market, with the Netherlands functioning as the principal destination via the Aalsmeer Flower Auction and direct retail outlets.
Other significant markets encompass the United Kingdom, Germany, Australia, Kazakhstan, nations in the Middle East, and emerging destinations throughout Europe, Asia, and Africa.
“To sustain competitiveness, the sector must perpetually invest in innovation, sustainability, quality assurance, and market diversification,” Chesaro concluded.