Kenya Flower Council Urges Policy Reforms to Safeguard Floriculture Sector and Unlock USD 1.4 Billion Growth by 2030

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Kenya’s floriculture industry has reaffirmed its position as one of the country’s most resilient and globally competitive export sectors, even as it called on government to urgently strengthen the business environment to protect jobs, unlock growth and sustain Kenya’s leadership in the global flower market.

In a statement issued in Nairobi, the Kenya Flower Council (KFC) noted that the floriculture sector remains a flagship contributor to the Bottom-Up Economic Agenda (BETA), accounting for approximately 1.6 per cent of national GDP and 18 per cent of total export earnings. In 2024 alone, the industry generated KES 108 billion (USD 835 million) in export revenues, despite the pressures of global inflation, rising input costs and high air freight charges.

The sector directly employs about 200,000 workers and supports more than two million livelihoods across production regions, particularly benefiting women and youth. Beyond foreign exchange earnings, floriculture continues to anchor rural economies, support county development priorities and drive inclusive growth.

According to KFC, the industry remains firmly on a growth trajectory. With the right policy support, export revenues could rise from USD 835 million in 2024 to over USD 1.4 billion by 2030. The sector also has the potential to expand production by an additional 5,000 hectares over the next decade and create at least 20,000 new jobs through increased value addition at source. These ambitions, the Council said, align squarely with BETA’s pillars of export-led growth, job creation, climate-smart development and MSME empowerment.

A notable trend highlighted by KFC is the growing participation of small and medium-scale growers supplying export markets through consolidation models. Counties such as Nakuru, Laikipia, Kiambu, Meru, Uasin Gishu and Nyandarua are witnessing increased investment by smaller producers, signaling a healthy pipeline for the industry. This expansion is boosting household incomes, strengthening county-level export earnings and enhancing the sector’s resilience through a more diversified producer base. However, many of these new entrants require predictable regulations and affordable compliance pathways to remain competitive.

On sustainability, KFC emphasized that Kenya continues to lead globally through the Flowers and Ornamentals Sustainability Standard (FOSS). More than 80 per cent of Kenya’s flower exports are certified under FOSS, which enforces strict controls on pesticide use, environmental protection, labour standards, gender safeguards and supply chain transparency. The standard has earned international recognition, assuring global buyers of ethical and environmentally responsible sourcing.

The floriculture industry is also one of the largest formal employers of women in rural Kenya. Through FOSS and workplace codes, farms are increasingly adopting gender-responsive policies, fair labour practices, grievance mechanisms and women-focused skills development programmes, helping to create safer and more inclusive workplaces.

Despite these strengths, KFC warned that rising policy, taxation and liquidity challenges threaten the sector’s long-term competitiveness. Growers currently face more than 50 levies, fees and charges, creating high operational costs and regulatory uncertainty. Delayed VAT refunds—now exceeding KES 12 billion—have strained liquidity, forcing many exporters to rely on costly borrowing. Additional taxes and charges, including KEBS cap hikes, UCR fees and excise duty on kraft paper, are discouraging value addition and increasing production costs.

While acknowledging ongoing government efforts to streamline trade processes, improve cargo clearance and reform VAT refunds, the Council called for more decisive action. Key recommendations include fast-tracking the settlement of verified VAT refund backlogs, removing refund caps for large exporters and allowing offsets against other tax obligations. KFC also urged the rationalisation of levies into a predictable single-levy framework, exemptions for agricultural exports from the KEBS Standards Levy, and measures to reduce freight and cold-chain logistics costs, particularly at Jomo Kenyatta International Airport.

Trade promotion was also identified as critical to future growth. Continued government support for participation in global trade fairs, export promotion financing and bilateral market access agreements will be essential to secure new buyers and deepen Kenya’s presence in emerging markets across Asia, the Middle East and the United States.

In conclusion, KFC reaffirmed its commitment to working closely with national and county governments, regulators and development partners to protect export jobs, expand foreign exchange earnings, promote value addition and accelerate climate-smart agriculture. The Council stressed that a predictable and enabling business environment could safeguard more than 200,000 jobs, unlock over USD 1.4 billion in export earnings by 2030, and cement Kenya’s position as home to the world’s best flower growers.


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