Double taxation hurting farmers, warns council

Double taxation by the national and county governments is scaring away potential investors, The Kenya Flower Council (KFC) has said.

The council said the entry of county governments has led to a multiplicity of taxes and levies. KFC executive officer Jane Ngige said taxation by both levels of government had made it expensive to do business in the country.

Ms Ngige said they would relentlessly engage the national and county governments to seek ways of easing the tax burden and other hurdles.

“We shall engage both governments to seek ways of eliminating the double taxation for the hard-working breeders, propagators and other flower farmers,” he said.

Speaking over the weekend in Naivasha, Ngige noted that although the sector was on a gradual rise, it faced various challenges.

She cited the accumulation and delay in paying VAT refunds to farmers and the frequent fluctuation of currencies as other obstacles to doing business.

“The climate change lately being experienced has also led to low production and more pests and diseases,” she explained.

And as the council marked 20 years, Ngige said the country had made huge strides in flower farming, noting that the sub-sector had gained a good reputation abroad for its high quality.

She welcomed the revitalisation of the Kenya Horticultural Council, saying it would help augment the sector’s improved performance.

“The new association will help strengthen the horticulture industry and enhance market access globally,” she said.

According to the latest statistics from KFC, Kenya earned Sh62.9 billion from 121,346 metric tonnes in 2015 compared to Sh54.6 billion recorded in 2014.

Speaking earlier, the human resource manager at Van Den Berg flower farm, George Onyango, called on the national and county governments to urgently address the issue of land lease.

He noted the issue was causing anxiety among many farmers as the 999 lease had expired and some counties were keen to take over the land.

Onyango cited the double taxation issue as a key factor affecting flower farms with many suffering losses.