Horticultural firms in Kenya, notably those in the large-scale floriculture industry, are experiencing a strain due to an accumulated Sh12 billion in tax refunds over the past three years.

The flower sector, an important foreign exchange generator, confronts high taxation, rising prices of farming essentials, and increasing operational costs, including water, labor, electricity, and freight.

The Kenyan government’s failure to expedite VAT refunds is hampering the operations and growth prospects of these companies.

The Kenya Flower Council is urgently seeking tax relief, having faced unfruitful negotiations with the Kenya Revenue Authority concerning the financial strain on flower farmers.