NAIROBI, Sept 15 (NNN-KBC) — The country’s flower export is expected to double in the next two months as the sector gears towards the high season according to the Kenya Flower Council (KFC).
Despite a rise in taxes and stringent standards by the European Union (EU), the Council is projecting a rosy future for the sector that earned the country some Ksh 110 billion in foreign exchange.
This came as the Council which has over 200 members released its annual report highlighting achievements made in supporting the economy and communities.
According to the Council CEO Clement Tulezi, the country was currently exporting 6,000 metric tonnes of flowers per month mainly to the EU which was the main market.
He noted that this was the low season with exports expected to double in November as the high season kicked off ahead of Christmas and Valentine.
“Currently we are doing 6,000 metric tonnes per month and we expect this to double by November when the high season kicks off,” he said.
Addressing the press in Naivasha, Tulezi decried the rising numbers of taxes that the national and county governments were seeking from the sector.
“Currently we are paying 52 different taxes to the two levels of government despite the economic impact we have in the country by earning Ksh 110 billion through exports,” he said.
He added that the situation had been worsened by the government’s failure to pay over Sh10B that the exchequer owed farmers through VAT refunds.
“Currently farmers are paying around $2.7 for a kilo of flowers and this is expensive compared to Ethiopia where farmers are paying 1.9 dollars for the same weight,” he said.
On his part, KFC Chairman Chris Kulei noted that rising taxes coupled with climate change had a major effect on the sector thus affecting projected growth.
Kulei was however optimistic of growth in the sector that employs over 200,000 directly as the Council engaged the government on emerging challenges.
“The rising numbers of taxes and levies coupled with stringent standards by the EU have a major effect in this critical sector and we are engaging the State on the same,” he said.
The CEO Redland Roses Disha Copreaux noted that small scale farmers were the most affected by new charges and stringent standards imposed in the sector.
“There is a new pest that has affected production and exports to the EU and these plus rising taxes and unpaid VAT refunds have a negative impact on the farmers,” she said. — NNN-KBC
