Flower Industry Calls for Policy Reforms to Safeguard Kenya’s KES 108 Billion Floriculture Sector

By Jane Muthusi 

Kenya’s floriculture industry has renewed its call for a predictable and supportive business environment, warning that policy, taxation and liquidity challenges could undermine one of the country’s most important export sectors.

In a statement issued in Nairobi on Thursday, December 18, 2025, the Kenya Flower Council (KFC) said the floriculture industry remains among Kenya’s most resilient and globally competitive sectors, contributing about 1.6 per cent of national GDP and accounting for nearly 18 per cent of total export earnings.

According to KFC, the sector generated KES 108 billion (USD 835 million) in export earnings in 2024, directly employs more than 200,000 workers and supports over two million livelihoods, particularly among women and youth in rural areas. Export volumes and farm gate values recorded modest growth in 2024 despite global inflationary pressures and high freight costs, reflecting sustained international confidence in Kenyan flowers.

The council said the industry is well positioned for expansion if supported by favourable policies, projecting growth in export revenues to over USD 1.4 billion by 2030, an additional 5,000 hectares in production over the next decade, and the creation of at least 20,000 new jobs through increased value addition at source.

KFC noted that these ambitions align with the government’s Bottom-Up Economic Transformation Agenda (BETA), particularly on export-led growth, job creation, climate-smart development and MSME empowerment.

The statement also highlighted the rising participation of small and medium-scale growers supplying export markets through consolidation, describing the trend as critical for inclusive growth and rural income diversification. Counties such as Nakuru, Laikipia, Kiambu, Meru, Uasin Gishu and Nyandarua have recorded increased entry of smaller farms into export production.

However, the council warned that many of these growers are entering international markets for the first time and require predictable regulations and affordable compliance pathways to remain viable.

On sustainability, KFC said Kenya continues to lead globally through the Flowers and Ornamentals Sustainability Standard (FOSS), which enforces strict controls on pesticide use, labour standards, environmental protection and supply chain transparency. More than 80 per cent of Kenya’s flower exports are currently certified under the FOSS standard, strengthening the country’s reputation for ethical and environmentally responsible floriculture.

The council noted that the sector is one of the largest formal employers of women in rural Kenya, with farms increasingly adopting gender-responsive workplaces, fair labour practices and skills development programmes under the FOSS framework.

Despite its strong performance, KFC warned that the industry faces serious competitiveness challenges, including over 50 levies and charges, delayed VAT refunds exceeding KES 12 billion, and taxes that discourage value addition and increase input costs. The council said delayed refunds have strained liquidity, forcing growers to rely on costly borrowing.

KFC called on the government to urgently address these issues by fast-tracking VAT refund settlements, rationalising levies, digitising regulatory approvals and investing in cold-chain and air freight infrastructure at Jomo Kenyatta International Airport.

The council said a predictable and enabling regulatory environment would protect existing jobs, unlock future export earnings and strengthen Kenya’s global position in the flower market.

“KFC reaffirms its commitment to working with government, counties and development partners to protect jobs, promote value addition, expand foreign exchange earnings and accelerate climate-smart agriculture,” the statement said, adding that Kenya must remain “home of the world’s best flower growers.”