Flower farmers could get relief from some of the taxes imposed on their businesses after Agriculture Cabinet Secretary Mutahi Kagwe said he would take up their concerns with the Treasury and Trade ministries.
Kagwe said some charges imposed by both the national and county governments were adding pressure to a sector already struggling with rising fuel, freight and other production costs.
The CS said the Government was willing to consider removing some of the taxes as an incentive to farmers and investors in the horticulture industry.
“I shall engage my counterparts from Treasury and Trade on the need for reviewing some of these taxes which are hampering growth in this critical sector,” he said.
Kagwe spoke on Friday, September 18, 2026, during the ongoing Naivasha Horticultural Fair, which has attracted local and international investors interested in displaying their products and expertise.
He described horticulture as an important contributor to food production and foreign exchange earnings, saying the industry required adequate support to continue growing.
The concerns over taxation have emerged alongside complaints about unpaid VAT refunds, which farmers say are affecting their ability to invest and expand their operations.
Kagwe said the Government was keen to resolve the VAT refund issue and would raise the matter with the Treasury.
“The farmers have raised their concern over the unpaid VAT refunds, which is affecting development, and we shall surely take it up with Treasury,” he said.
He said addressing the outstanding refunds would help the sector expand, create more employment opportunities and increase foreign currency earnings.
The CS also said the Government was engaging the European Union on safety standards that have affected Kenya’s horticultural exports.
Flower growers have meanwhile pointed to the sharp increase in the cost of transporting their produce and running their farms.
Elgon Kenya Managing Director Bimal Kantaria said expensive fuel and inadequate cargo freight had placed additional strain on horticultural businesses.
He challenged Kenya Airways, which has a high number of cargo planes, to step in and help farmers cope with the high freight costs.
Kantaria also said farmers could increase production and earnings through greater mechanisation, particularly by adopting modern agricultural equipment.
“The sector has suffered from high prices of fertiliser since the Ukraine war started, and this has had an effect on the cost of production for all farmers,” he said.
Freight and fuel charges have more than doubled over the past couple of years, with the situation further worsened by the conflict between the United States and Iran.
Naivasha Horticultural Fair Chairman Richard McGonnel said the sector was also being affected by double taxation and the failure to settle VAT refunds.
“There are farms that are owed millions by the government and there is no commitment on when they will be paid, and this affects expansion and erodes donor confidence,” he said.
The concerns come as the Naivasha Horticultural Fair continues to bring together local and international investors seeking to showcase their capabilities and explore opportunities in the horticulture sector.