Agriculture Cabinet Secretary Mutahi Kagwe has called for faster processing of tax refunds owed to horticultural investors and a review of levies and other charges affecting producers as the government seeks to strengthen the sector’s competitiveness.
Speaking during a horticulture industry showcase, Kagwe said the immediate priority should be to ensure investors already operating in Kenya remain profitable, competitive and able to reinvest and expand.
According to the CS, the horticultural sector contributes approximately Sh145 billion annually to Kenya’s economy, with flowers accounting for about 57 per cent of the sector’s contribution.
Kagwe said faster payment of legitimate tax refunds would allow horticultural investors to reinvest in their businesses, supporting expansion and job creation.
He cited the local packaging of Kenyan flowers for supermarket markets in the United Kingdom as an example of reinvestment driving value addition and employment.
He also called for a review of levies, tariffs and other charges affecting horticultural producers, saying the government should reduce the cost of doing business and maintain a policy environment that encourages production and investment.
“You cannot get growth out of taxation. You get growth out of production,” the CS said.
Kagwe identified Kenya’s skilled workforce, together with a predictable tax, security and tariff environment, as important factors in attracting and retaining investors.
He also urged more Kenyans to invest in the horticultural value chain alongside international investors.
"The government is also strengthening the sector’s capacity to respond to climate change and disruptions in key international markets," Kagwe said.
He highlighted research into climate-resilient crop varieties and new technologies as important in safeguarding future production.
The CS announced plans to establish a private-sector liaison function within the Kenya Agricultural and Livestock Research Organisation (KALRO) to strengthen collaboration between researchers and industry.
He said the initiative would help ensure research addresses challenges faced by producers while improving awareness of private-sector innovations within public research institutions.
Through the Kenya Agricultural Digital Information Centre (KADIC), the government is also advancing digital agriculture, including the use of drones for spraying, soil testing and soil analysis, as greater attention is placed on soil health and technology-driven production.
On international markets, Kagwe said the European Union remains an important partner for Kenya’s horticultural industry, noting that Kenya is up to date with agreements and requirements governing trade with the bloc.
He said the sector continues to face challenges, including geopolitical disruptions in the Middle East, which affect Kenya as an export market for products such as flowers, tea and coffee and as a source of inputs including fertiliser and petroleum products.
Despite the challenges, Kagwe said Kenya’s horticultural sector remains on an upward growth path, with the government committed to working with industry players to strengthen competitiveness, expand value addition, create employment and increase opportunities for Kenyan produce in global markets.
