Union calls for tax incentives to attract new investments

The government has been urged to consider extending incentives and offer an enabling environment for local and foreign investors in the horticultural sector amid concerns over heavy taxation.

Kenya Export, Floriculture, Horticulture, and Allied Workers Union (KEFHAU) National Chairman Peter Palang’a said several investors were moving out of the country to invest elsewhere,  lamenting high taxes. For the country to grow economically, he pointed out, the current taxes must be reviewed.

“To discourage capital flight and attract new investments, Kenya needs to subsidise energy costs and review tax regimes in the industry to create more jobs for our people,” said Palang’a.

Palang’a who spoke after signing a Collective Bargaining Agreement (CBA) for over 1,500 employees of Flora-Ola flower firm within Subukia sub-County added that the high taxes were affecting profit margins for flower farms given the drop in flower prices in the European Union (EU) market.

Highest-taxed sectors

Last year, Kenya Flower Council (KFC) raised concern that floriculture was one of the highest-taxed sectors in the country despite a rise in the number of challenges facing farmers.

KFC argued that flower farmers presently pay 45 different taxes to both the national and county governments every year. The council noted that the national and county governments unfairly target flower farmers despite the losses they incur. Palang’a said negotiations on the collective bargaining agreement between KEFHAU and flower firms in various parts of the country were at an advanced stage