Kenya’s floriculture industry continues to stand as a cornerstone of the country’s export economy, but its future growth will depend on how effectively stakeholders respond to emerging policy and operational challenges. This was the central theme at a high level regional meeting held in Naivasha, where farm owners, senior managers, and government representatives convened to chart the way forward for the sector.
The meeting provided a platform for candid dialogue on the regulatory and business environment shaping floriculture. Participants outlined a range of pressing concerns currently affecting industry players, particularly in the areas of taxation and logistics.
Among the key taxation issues raised were delays in VAT refunds, the imposition of VAT on locally produced products, including packed-at-source bouquets, UCR charges, the 25 percent import levy on Kraft paper, and newly introduced NEMA charges. These cost pressures, stakeholders noted, continue to weigh heavily on producers and exporters, potentially undermining Kenya’s competitiveness in global markets.
Logistical constraints also featured prominently in the discussions. Industry players pointed to persistent infrastructure gaps, elevated freight costs, and limited cargo capacity as critical bottlenecks that require urgent attention to sustain export growth.
Despite these challenges, the meeting underscored ongoing collaboration between the industry and government, while calling for stronger and more structured public-private partnerships (PPPs). Such partnerships, stakeholders emphasised, will be vital in supporting market access initiatives including participation in international trade fairs, and in addressing negative global perceptions that may affect the sector’s positioning.
Representing the Principal Secretary for Trade, Regina Ombam, the Director of External Trade, Ms. Elizabeth Miguda, reaffirmed the government’s commitment to supporting the floriculture industry. She noted that key issues, including NEMA charges, UCR charges, and VAT on locally produced products, are currently under active consideration at the Presidential Roundtable, with further feedback expected. The State Department for Trade will also engage the Council on strategies to unlock emerging markets and strengthen Kenya’s global positioning.
On the regulatory front, KEPRO Kenya, through its CEO James Odongo, provided clarity on the Extended Producer Responsibility (EPR) Regulations 2024. It was highlighted that fully export-oriented producers may not require Producer Responsibility Organisation (PRO) membership, provided they can demonstrate that all their products are exported. The Council continues to support members in onboarding to KEPRO where applicable.
Sustainability remains a key priority for the industry. In this regard, the Council is advancing its partnership with MPS on the Hortifootprint carbon calculator, a tool designed to enable stem-by-stem emissions tracking across the production cycle. This initiative is expected to strengthen transparency and reinforce the sector’s commitment to sustainable production practices. As deliberations concluded, one message stood out clearly: Kenya’s floriculture industry is poised for growth, but unlocking its full potential will require deliberate, coordinated action between the public and private sectors.
The Council has reaffirmed its commitment to working closely with government and industry stakeholders to enhance competitiveness, drive sustainability, and secure the long-term growth of the sector.
The meeting was graciously hosted by Flamingo Horticulture, a KFC FOSS Gold Certified member, whose support underscored the collaborative spirit driving the industry forward.