Kenya Plans VAT Reform to Ease Flower Exporters’ Cash Flow Challenges

Kenya plans to cut VAT for export-oriented businesses from 16% to 8% to ease cash flow problems for flower exporters.
The flower sector is owed over Ksh.10 billion in VAT refunds, causing major liquidity strain for growers.
The government also wants to speed up VAT refunds, simplify regulations, and reduce compliance costs to boost competitiveness.
Kenya’s floriculture industry is facing challenges like high air freight costs, expensive inputs, supply chain disruptions, and tighter sustainability demands.
Despite the pressures, officials say the sector is innovating and the country plans to expand airport and cold chain infrastructure to support exports.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.