The Kenya Flower Council (KFC) has issued an urgent appeal to government agencies and industry stakeholders to take swift action to reduce escalating freight charges and ease the tax burden facing the country’s floriculture sector, warning that persistently high costs threaten the future of one of Kenya’s most important export industries.
Speaking to the media earlier today, KFC Chief Executive Officer Clement Tulezi said soaring air cargo costs and limited freight capacity have become a major obstacle for flower exporters, particularly during peak seasons such as Valentine’s Day and the Christmas period. He noted that since late last year, exporters have struggled to secure adequate cargo space, resulting in sharply higher freight charges that have eroded profit margins and weakened competitiveness.
“Our freight charges are up to five dollars higher compared to other countries in the region,” Mr. Tulezi said. “As the Kenya Flower Council, we are contributors to the Bottom-Up Economic Agenda, with our membership growing by up to 20 new members from across the broader floriculture fraternity. However, these high costs could have major implications for the sector if not addressed urgently.”
According to the council, logistical challenges and varying tariffs have significantly constrained the industry’s ability to deliver fresh flowers to key global markets in Europe, the Middle East, Asia, and beyond. The situation, Mr. Tulezi warned, risks undermining Kenya’s long-held position as a global leader in cut-flower exports at a time when producers in Latin America and other regions are rapidly expanding their market share.
In addition to freight concerns, the KFC CEO called for comprehensive tax reforms to ease pressure on flower producers. He highlighted a persistent backlog of Value Added Tax (VAT) refunds owed to flower farms, alongside multiple levies imposed at both national and county levels, which together strain cash flows and limit reinvestment.
“The government should prioritise clearing tax refunds and implementing reforms that enable flower farms to meet their financial obligations,” Mr. Tulezi said. “Improved freight capacity and targeted tax relief are critical measures that will help safeguard the more than 200,000 jobs created by this sector.”
Kenya’s floriculture industry remains one of the country’s top foreign-exchange earners, directly employing hundreds of thousands of people and supporting millions more through related value chains such as transport, packaging, and logistics.
Industry leaders are now calling for coordinated action involving the Ministry of Trade, the Ministry of Transport, aviation authorities, freight partners, and the Kenya Revenue Authority (KRA). Among the proposals being advanced are a review of existing policies deemed to be hindering growth and the establishment of a one-stop processing zone to streamline regulatory and logistical procedures.
As pressure mounts from rising global competition and mounting operational costs, stakeholders warn that timely intervention will be critical to protecting Kenya’s floriculture sector and preserving its vital contribution to the national economy.
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