Kenya's horticulture industry significantly contributes to the country's economy, with an annual contribution of approximately Sh145 billion. The flower industry makes up about 57 per cent of this contribution. Agriculture Cabinet Secretary Mutahi Kagwe has called for reforms to support the growth of the industry, citing delayed tax refunds and high charges facing horticultural producers as major challenges.
Kagwe speaking during a horticulture industry showcase on September 19, 2026, emphasized the need for legitimate tax refunds to be processed and paid more quickly. He stated that investors could use this money to expand their operations and support additional employment. The CS also called for a review of levies, tariffs, and other charges imposed on horticultural producers, arguing that lowering the cost of doing business would encourage more production and investment.
The horticulture industry is already creating opportunities for value addition, with local packaging of Kenyan flowers for supermarkets in the United Kingdom being a notable example. Kagwe pointed out that reinvestment can support jobs and increase the value of exports. He further emphasized that investment in the sector is crucial for growth, stating, "You cannot get growth out of taxation. You get growth out of production."
Kagwe highlighted Kenya's trained workforce as an important advantage for the horticulture industry. However, he stressed that investors also need a predictable environment in taxation, security, and tariffs to remain and expand their operations. The CS urged Kenyans to take a greater interest in the sector and invest across the horticultural value chain, alongside international investors already operating in the country.
The government is working on measures to help the industry deal with climate change and interruptions affecting major international markets. Kagwe mentioned research on crop varieties that can withstand climate-related challenges and the use of new technologies as part of efforts to protect future agricultural production. He also announced plans to set up a private-sector liaison function at the Kenya Agricultural and Livestock Research Organisation (KALRO).
The proposed private-sector liaison function aims to bring researchers and industry players closer together, ensuring that public research responds to problems facing producers. The government is also expanding the use of digital tools in agriculture through the Kenya Agricultural Digital Information Centre (KADIC). This program covers technologies such as drones for spraying, soil testing, and soil analysis.
On export markets, Kagwe noted that the European Union remains a key trading partner for Kenya's horticulture industry. Despite external pressures, including geopolitical disruptions in the Middle East, the CS expressed confidence that the industry continues to grow. The government will work with industry players to strengthen its competitiveness, focusing on increasing value addition, creating more employment, and expanding opportunities for Kenyan produce in international markets.
Key points
- The horticulture industry contributes approximately Sh145 billion to Kenya's economy annually.
- Delayed tax refunds and high charges are major challenges facing horticultural producers.
- The government is working on measures to help the industry deal with climate change and interruptions affecting major international markets.
