CS Kagwe calls for repeal of unfair taxes hurting flower farmers
The Cabinet Secretary (CS) for Agriculture Mutahi Kagwe is now calling for a review of some of the taxes levied against flower farmers, terming them as unfair. The CS admitted that some of the taxes could be dealt with at a time when the horticulture sector was reeling from high costs of production caused by […]
Cabinet Secretary for Agriculture Mutahi Kagwe is advocating for a review of certain taxes imposed on flower farmers, deeming them unfair. He acknowledged that some taxes could be addressed during a period of high production costs, primarily due to rising fuel prices. Flower farmers have expressed concern that steep production expenses, along with the government's failure to reimburse VAT, are undermining investor confidence.
The CS emphasized that horticulture plays a vital role in Kenya's food production and foreign exchange earnings, and thus requires full support. He suggested that some taxes from both national and county governments could be eliminated to encourage farmers. Kagwe pledged to discuss potential tax adjustments with Treasury and Trade counterparts.
During the Naivasha Horticultural Fair, where numerous local and international investors were present, Kagwe addressed the issue of unpaid VAT refunds. He confirmed that the government is determined to resolve this matter, which he believes will boost growth and generate more employment opportunities. The CS also mentioned that the government is collaborating with the EU to address safety standards that have negatively impacted exports.
Bimal Kantaria, the MD of Elgon Kenya, agreed that high fuel costs and insufficient cargo freight have adversely affected the horticulture sector. He urged Kenya Airways to assist farmers incurring high freight charges and highlighted the potential for sector expansion through mechanization and modern farming equipment. The high prices of fertilizers since the Ukraine war began have also increased production costs.
Richard McGonnel, the Chairman of the Naivasha Horticultural Fair, confirmed that double taxation, soaring fuel costs, and unpaid VAT refunds have significantly impacted the horticulture sector. He noted that some farmers are owed substantial sums by the government without a clear timeline for payment, affecting expansion and donor confidence.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
