Agriculture Cabinet Secretary Mutahi Kagwe has called for a review of taxes levied on horticultural products, terming them unfair and punitive.
Kagwe said the taxes need to be addressed as the horticulture sector continues to grapple with high production costs driven by rising global fuel prices.
His remarks came as flower farmers warned that high production costs, coupled with delays in VAT refunds, are eroding investor confidence. They said freight charges and fuel prices have more than doubled, with the situation worsening amid the US-Iran conflict.
The CS spoke during the Naivasha Horticultural Fair, where he pledged to engage his Treasury and Trade counterparts on issues hampering growth in the sector.
Horticultural sector players have also called on the national carrier to consider establishing a dedicated freight division for fresh produce.
