Kenya is stepping up efforts to consolidate its position as Africa’s leading horticultural hub, with the Government prioritising investor protection, lower costs of doing business, expanded markets, digital agriculture, research and stronger public-private partnerships to drive the sector’s next phase of growth.
Speaking during a horticulture industry showcase, Agriculture Cabinet Secretary Mutahi Kagwe, said the immediate priority is not only attracting new investors, but also ensuring that those already operating in Kenya remain profitable, competitive and able to reinvest and expand.
The horticultural sector contributes approximately KSh 145 billion annually to Kenya’s economy, with flowers accounting for about 57% of the sector’s contribution.
CS Kagwe said the industry’s continued growth is critical to employment, exports, value addition and the wider agricultural economy.
Kenya’s horticultural levies
The CS called for faster processing of legitimate tax refunds owed to horticultural investors, noting that the money is often ploughed back into businesses, supporting expansion and creating jobs for Kenyans.
He cited the growing local packaging of Kenyan flowers for supermarket markets in the United Kingdom as an example of how reinvestment is driving value addition and employment within the country.
Kagwe further called for a review of levies, tariffs and other charges affecting horticultural producers, stressing that the Government must reduce the cost of doing business and maintain a policy environment that encourages production and investment.
“You cannot get growth out of taxation. You get growth out of production,” the CS said.
What is attracting investment in Kenya’s horticulture sector?
He identified Kenya’s skilled and hardworking workforce, alongside a predictable tax, security and tariff environment, as important factors in attracting and retaining investors. He also urged more Kenyans to invest in the horticultural value chain alongside international investors.
At the same time, the Government is strengthening the sector’s capacity to respond to external pressures, including climate change and disruptions in key international markets. Sen. Kagwe highlighted research into climate-resilient crop varieties and new technologies as critical to safeguarding future production.
The CS announced plans to establish a private-sector liaison function within KALRO to strengthen collaboration between researchers and industry, ensuring that innovations developed by researchers respond to challenges faced by producers while also improving awareness of private-sector innovations within public research institutions.
Through the Kenya Agricultural Digital Information Centre (KADIC), the Government is also advancing digital agriculture, including the use of drones for spraying, soil testing and soil analysis, as greater attention is placed on soil health and technology-driven production.
International market for Kenya’s horticultural industry
On international markets, Sen. Kagwe said the European Union remains an important partner for Kenya’s horticultural industry, noting that Kenya is up to date with its agreements and requirements governing trade with the bloc.
He acknowledged that the sector continues to face challenges, including geopolitical disruptions in the Middle East, which affect Kenya both as a major export market for products such as flowers, tea and coffee and as a source of critical inputs, including fertiliser and petroleum products.
Despite these pressures, Sen. Kagwe said Kenya’s horticultural sector remains on an upward growth path, with the Government committed to working with industry players to strengthen competitiveness, expand value addition, create employment and position Kenyan produce for greater opportunities in global markets.
The CS urged more investors, both domestic and international, to participate in the sector, emphasising that the Government’s role is to remain responsive to the evolving needs of industry and create an environment where investment, production and enterprise can thrive.
