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Talks between the National Treasury and flower industry stakeholders have begun in a bid to review flower export taxes and harmonize key laws.
Horticultural Crops Directorate Director Christine Chesaro says the $10 standard fees per consignment imposed on horticultural exporters mid last year is negatively affecting small exporters’ earnings, making Kenyan flowers expensive at the international market.
Kenya’s cut flower export earnings declined by 2pc in 2024 to Ksh 72 billion. Players in the value chain say the drop was due to among other factors increased taxation in the floral sector.
The directorate says the tax introduced by Kenya Trade Network Agency (KENTRADE) is being reviewed, with exporters rooting for a quantity based taxation.
The flower council is also calling for harmonization of over 50 taxes and levies imposed on flower farms and traders.
To enhance quality of Kenyan flowers breeders and growers will start receiving royalties for new engineered crops a move that seeks to increase its global cut flower market with new species.
Kenya Plant Health Service will rollout an electronic phytosanitary certification system, to improve the traceability, to reduce interception of Kenyan cut flower consignments in key markets.
They were speaking ahead of the 12th International Flower Trade Exhibition scheduled for May 31, this year.
