By Mary Mwende
Kenya’s flower industry is more than just a business; it’s actually the epitome of resilience and economic strength. Yet, behind the colourful bouquets that reach global markets lies a sector grappling with daunting challenges. Rising freight costs and punitive taxation are among the numerous hurdles that are threatening to clip the wings of this great industry, putting thousands of livelihoods at risk. If action is not taken soon, Kenya’s dominance in the global flower market could begin to dwindle.
To start with, Freight Cost! Flowers, by nature, demand speed, efficiency, and careful handling to reach customers in their freshest form. But since 2020, air freight costs have soared, more than doubling and sending shockwaves through the industry. With a larger percentage of all Kenya’s flowers exported by air, this inflation is choking exporters, making it increasingly difficult to compete in an aggressive global market.
Limited cargo space at Jomo Kenyatta International Airport (JKIA) is fanning the flames, constraining supply chains and worsening the price squeeze. While some are considering sea freight as a cheaper alternative, it comes with its own set of thorns: longer transit times, the challenge of maintaining quality, and the need for massive investments in cold chain technology. Without immediate intervention, Kenya’s exporters may find themselves priced out of a market they once dominated.
Then there is Taxation, the silent killer of competitiveness. If high freight costs are a blunt-force blow, excessive taxation is the slow poison seeping into the roots of the industry. VAT, export duties, and levies on agricultural products are eroding profit margins and making Kenyan flowers less attractive to international buyers. Exporters already burdened with logistical challenges now find themselves in an unforgiving tax regime that stifles growth and innovation.
The Kenya Flower Council (KFC) has been vocal in calling for tax reforms, pushing for the reduction of VAT and a reassessment of export duties. If Kenya wants to remain a global floriculture powerhouse, policymakers must recognize that excessive taxation is doing more harm than good. The government ought to act swiftly to ease this burden before businesses are forced to relocate or scale down operations.
And Will Kenya Rise to the Challenge?
The challenges are steep, but they are not insurmountable. Expanding cargo capacity at JKIA, creating incentives for alternative freight solutions, and investing in robust cold chain logistics are all urgent steps that must be taken. Likewise, tax relief measures and policy reforms could provide the much-needed breathing room for exporters to regain their competitive footing.
Kenya’s flowers have long been admired for their quality, but admiration alone won’t sustain the industry. Action is needed now! Without bold reforms and strategic interventions, Kenya risks losing its hard-earned place in the global flower trade. The industry has blossomed against all odds before, now, it must do so again. The question to ponder is: ‘Will Kenya step up before it’s too late….?’
Enjoy this week’s Floriweek!
Contact us via editor@floriculture.co.ke