Safeguarding Kenya’s Flower Power: Industry Urges Predictable Policies to Protect Jobs and Exports

KFC Chief Executive Officer Mr. Clement Tulezi/photo 

Kenya’s floriculture industry remains one of the country’s most resilient and globally competitive export sectors and a flagship contributor to the Bottom-Up Economic Agenda (BETA), the Kenya Flower Council (KFC) has said.

Speaking during a media engagement, KFC Chief Executive Officer Mr. Clement Tulezi noted that the industry contributes approximately 1.6 per cent of national GDP and nearly 18 per cent of Kenya’s total export earnings, sustaining over two million livelihoods across production regions.

Despite global inflationary pressures and high freight costs, the sector recorded modest growth in export volumes and farm-gate values in 2024—underscoring continued global confidence in Kenyan flowers.

Generated KES 108 billion (USD 835 million) in export earnings

Directly employed over 200,000 workers

Supported more than two million livelihoods, particularly among women and youth

The industry remains a critical anchor for rural economies, county development priorities, and foreign exchange earnings.

Mr. Tulezi said that with supportive and predictable policies, the sector has strong potential to:

Grow revenues from USD 835 million in 2024 to over USD 1.4 billion by 2030

Expand production by 5,000 additional hectares over the next decade

Create an additional 20,000 jobs through increased value addition at source

“These ambitions align directly with BETA pillars on export-led growth, job creation, climate-smart development, and MSME empowerment,” he said.

The sector has recorded growing participation by smallholder and medium-scale growers, many of whom are entering export markets for the first time through consolidation models. This expansion is particularly evident in counties such as Nakuru, Laikipia, Kiambu, Meru, Uasin Gishu and Nyandarua.

Supporting smaller farms is critical as it:

Expands rural household incomes

Increases county-level export earnings

Diversifies supply and strengthens resilience

Deepens Kenya’s global competitiveness

However, these new entrants require predictable regulatory frameworks and affordable compliance pathways to thrive.

Kenya continues to lead globally on sustainability through the KFC Flowers and Ornamentals Sustainability Standard (FOSS). Over 80 per cent of Kenya’s flower exports are certified under FOSS, positioning the country as a model for ethical and environmentally responsible floriculture.

Responsible pesticide use and compliance with global residue limits

Safe working environments, fair wages and strong labour protections

Gender equality, women’s leadership pathways and childcare safeguards

Environmental protection through water efficiency, carbon reduction and biodiversity conservation

The floriculture sector remains one of the largest formal employers of women in rural Kenya, with farms increasingly implementing gender-responsive workplaces and strong grievance mechanisms.

Trade Fairs and Market Access

KFC emphasized that continued participation in international trade fairs is critical for retaining market share, securing logistics channels, and expanding into Asia, the Middle East and the United States.

Government support through trade missions, export promotion financing, and bilateral agreements remains vital to strengthening Kenya’s global flower brand.

Despite its strong performance, the sector faces growing challenges that threaten long-term sustainability, including:

Over 50 levies, fees and charges, creating unpredictability and high operating costs

Delayed VAT refunds exceeding KES 12 billion, forcing growers into expensive borrowing

Taxes that discourage value addition and increase input costs, including KEBS levy hikes, UCR fees, and excise duty on kraft paper

While appreciating ongoing government efforts to streamline trade processes, KFC called for urgent reforms to protect jobs and unlock growth:

Fast-track settlement of verified VAT refund backlogs

Remove VAT refund caps for large exporters

Allow VAT offsets against tax obligations

 Rationalise and Harmonise Levies

Consolidate multiple charges into a single, predictable levy

Exempt agricultural exports from the KEBS Standards Levy

Revert the HCD levy to a volume-based incentive structure

Cap the UCR levy at USD 3 and abolish excise duty on kraft paper

 Enhance Regulatory and Trade Facilitation

Digitise approvals under an “apply once, pay once” framework

Conduct regulatory impact assessments before introducing new taxes

Prioritise cold-chain logistics and reduce high air freight costs at JKIA

Kenya Flower Council reaffirmed its commitment to working closely with government, counties, regulators and development partners to:

Protect export jobs,Promote value addition at source

Expand foreign exchange earnings

Accelerate climate-smart and sustainable agriculture

“A predictable and enabling business environment will protect over 200,000 jobs, unlock more than USD 1.4 billion in export earnings by 2030, and strengthen Kenya’s global competitiveness,” Mr. Tulezi said.

KFC called for policies that facilitate growth rather than constrain it, ensuring Kenya remains home to the world’s best flower growers.