The Kenya Flower Council (KFC) envisions a prosperous Valentine’s Day for the flower industry, fueled by an increasing demand in the European Union (EU) market.
The council forecasts a rise in demand for roses from the current 3,400.0 tonnes per week to 4,500.0 tonnes, with 70.0% of these exports targeted for the EU market.
Issues were raised by flower farmers, represented by KFC, regarding the government’s delay in settling Value Added Tax (VAT) refunds amounting to over KES 13.0 billion.
The Chief Executive Officer of KFC Clement Tulezi, emphasized that despite the challenges faced, flower production has remained stable, even in the midst of ongoing rains affecting crops in certain parts of the country.
Current weekly exports stand at 3,400 tonnes, and the council anticipates this figure to reach 4,500.0 tonnes by the second week of February in preparation for Valentine’s Day.
Tulezi expressed disappointment at the government’s decision to cap VAT refund payments at KES 10 million per month, despite farmers being owed over KES 13.0 billion by the Treasury.
This lack of reimbursement has led to stagnation in the sector, raising uncertainties about the industry’s future. Tulezi underscored the necessity for consistent government support to foster the sector’s growth, emphasizing the industry’s potential to double annual production over the next decade with proper support.
Jack Kneppers, Managing Director of Maridadi Flower Farm, voiced concerns about the cold weather in Europe posing challenges for Valentine’s Day.
Although snowfall in Europe may complicate flower delivery to some consumers, Kneppers noted that despite heavy rains affecting production in Kenya, EU market prices have remained stable in recent years.
Kneppers urged the government to consider tax holidays and waivers for the flower sector, highlighting that other industries, such as coffee, tea, and sugarcane, have received such benefits, unlike the flower sector.
The appeals for government support underscore the importance of creating a conducive environment for Kenya’s flower industry, which significantly contributes to foreign exchange earnings.
