Browsing: flower industry

Kenya’s exports of cut-flower ornamentals to the United Kingdom could be subject to additional tariffs by the end of this year if the Economic Partnership Agreement (EPA) is not ratified.  The Kenyan parliament has refused to ratify it citing certain clauses that have raised concerns from some stakeholders.  A section of parliamentarians consider that the EPA, having been adapted from that of the East African Community (EAC) and the European Union (EU), should be ratified with other member states doing the same.  

The Kenya-UK trade deal worth £1.4 billion signed on December 8, 2020 provides Kenyan businesses duty-free access to the UK market. Meanwhile, Kenya will start phasing out duty and quota barriers on a set number of UK products 12 years after the EPA has come into force. 

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Kenya’s exporters of fresh produce are expected to begin paying at least four times the Agricultural Produce Cess effective 1st January 2021.

In a letter, sent on 30th December last year by the Horticultural Crops Directorate (HCD) to the industry directs all exporters of horticultural products to pay from 1st January 2021 Agricultural Produce Cess based on the free on board (f.o.b) value and not the quantity in line with the new Horticulture (Crops) Regulations.

But the Kenya Flower Council (KFC) is calling on the government to weigh the benefit against the costs of this new regulation that has already been implemented.

According to the KFC Chief Executive Officer Mr Clement Tulezi, this poses a big threat to the recovery of the country’s flower sector.

Also Read: Why over 7000 Kenyan Flower farmers are getting funded

“Hope for quick recovery of Kenya’s flower industry will diminish as government arbitrarily increases …

The grasp of the Coronavirus has been unrelenting; like the grim reaper, it continues its deadly march around the economies of the world, sucking the soul of one sector after another, leaving a trail of death and destruction.  

The flower industry has not been left unscathed, being one of the hardest hit sectors. Plummeting revenues have been the plight of flower farmers, who have been disposing of blooms meant for export that have been wilting by the day. Covid-19 has upended the flower industry and crushed consumer demand in the international market, incurring a net-loss of well over Ksh.8 billion (US$74.7 million) in just a month, with daily losses reported to be amounting to Ksh.20 million (US$187.0 thousand). Direct sale orders have plunged to below 35%, placing the livelihoods of both the 150,000 direct dependents and across the value chain, to the over four million, who indirectly …