The government has proposed a major tax reduction for export-oriented companies in a move aimed at protecting Kenya’s flower industry, one of the country’s biggest foreign exchange earners.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said proposals currently under consideration in the budget seek to reduce tax for export-focused firms from 16 per cent to 8 per cent to boost growth, competitiveness and job creation.
Speaking while opening the 13th International Flower Trade Exhibition (IFTEX) 2026 in Nairobi on Tuesday, Kinyanjui said the flower sector remains a critical pillar of the Kenyan economy, generating about Sh110 billion annually in export earnings and directly employing more than 200,000 people.
“When many people think about flowers, they think about beauty, colour and celebration. But for Kenya, flowers represent something far greater. They represent jobs, livelihoods, innovation, women empowerment, foreign exchange earnings and economic opportunity for thousands of families,” he said.
The CS noted that Kenya has spent more than four decades building its reputation as a global flower powerhouse, becoming one of the world’s leading exporters of cut flowers, particularly to European markets.
However, he warned that rising freight costs continue to erode the competitiveness of Kenyan exports compared to rival producers in the region.
“We must also address the high cost of freight, which continues to make our exports more expensive compared to neighbouring countries,” Kinyanjui said.
His remarks come as the horticulture sector faces growing pressure from increased logistics costs, stricter environmental requirements in export markets and competition from emerging flower-producing countries.
Industry players attending IFTEX 2026 said sustaining Kenya’s position in the global flower market will require continued investment in infrastructure, lower production costs and supportive government policies.
The annual exhibition brought together growers, exporters, buyers and investors from across the world, highlighting the importance of a sector that supports hundreds of thousands of jobs directly and indirectly while earning the country billions in foreign exchange.