KFC Profile

Kenya Flower Council (KFC) is a voluntary association of independent growers and exporters of cut-flowers and ornamentals, formed in 1996, with the aim of fostering responsible and safe production of cut flowers in Kenya with due consideration of workers welfare and protection of the environment. 

Against this background the KFC has become a common platform for industry representation, promotion and compliance to pertinent local and international standards, deemed necessary to secure markets.

KFC administers compliance through an internationally accredited KFC Certification Scheme on good agricultural practice, sustainability, social accountability, hygiene health and safety, capacity building, environmental protection and conservation, adherence to which is the backbone of all KFC activities. 

The KFC Certification Scheme  and Quality Management Systems is accredited by the South African National Accreditation Systems (SANAS), as a Certification Body (C49), in accordance with ISO/IEC 17065. 

In order to remain relevant, the Certification Scheme which is a living document stays abreast with industry dynamics. Benchmarking the KFC Certification Scheme to other codes such as GlobalGap, Fair Flowers Fair Plants (FFP), Tescos Nurture, KS- 1758 in addition to 23 different Kenya Government statutes, provides an opportunity to conduct “Combi” audits as a measure of effective and efficient service to members.

It also embraces the principles of the International Labour Organization (ILO) Convention, International Code of Conduct (ICC), Ethical Trade Initiatives (ETI) and the Horticulture Ethical Business Initiatives. 

As of November 2015, KFC had a producer membership of 95 flower farms situated throughout the country. The current KFC membership represents about 70% of the flowers exported from Kenya. Associate membership stands at 62 members representing major Cut Flower Auctions and ambien tablets distributors in UK, Holland, Switzerland, Germany and Kenya. Associate members are involved in the flower sector through flower imports, provision of farm inputs and other affiliated services.

KFC is a member of:

  1. Global Gap
  2. Floriculture Sustainability Initiative (FSI)
  3. Union Fleurs
  5. Kenya Horticultural Council (KHC)
  6. Horticulture Council of Africa (HCA)
  7. Kenya Private Sector Alliance (KEPSA) 
  8. Kenya Association of Manufacturers (KAM)
  9. Federation of Kenya Employers (FKE)
  10. National Taskforce on Horticulture.

“To be the lead organization in the provision of representational, self-regulation and promotion services for the floriculture industry in Kenya.”

“Active participation in the formulation and implementation of policies governing sustainable development of the floriculture sector”.

“To promote economic, social and political interests of the floriculture industry through active participation in the determination and implementation of policies governing sustainable development of the sector”.

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October 9, 2015October 9, 2015

In efforts to reduce the cost of doing business in the country and enhance service delivery, the National Treasury held a conference in Naivasha. The conference was held under the aegis of the Intergovernmental Budget and Economic Council (IBEC). Kenya Flower Council attended the seminar and participated in the drafting of the final report.

The agenda of the conference was the development of a national policy to aid counties enhance the collection of own revenue and to cut on dependency on national allocation through maximization in and alignment of the seven pillars, to avoid revenue wastage at collection and to expand the tax base. The pillars are:

• Single Business permit/Multiplicity of Taxes • Other taxes, fees and Charges Collected by Counties • Property Taxation • Drafting National and County Policy and Legislation • Citizen Engagement and Public Participation • ICT Applications for Revenue Collection • Revenue Administration and HR Systems

Summary of the recommendations to thematic Pillars

Taxes & Levies As already provided for in the Public Finance Management Act (PFMA) that the National Treasury should be responsible for the review and analysis of county tax proposals. The PFMA read together with articles 209 and 210 of the Constitution provides that the Cabinet Secretary for Finance should review and be consulted on county tax proposals. However, it is not yet clear what happens if he rejects the proposal as it may prejudice the economic unity of Kenya.

The suggested framework legislation should provide a legal instrument which regulates the county tax assignment process in a transparent manner where neither a county nor the National Treasury can delay the county tax introduction.

Legal review of all enabling or principal legislation for the imposition of cess, business license fees etc should commence with the view to aligning them with the current requirements of the Constitution and the PFMA. To advance this process at an accelerated pace would require increasing resources of the Law Reform Commission to complete this process as a matter of high importance.

Single Business Permits

- Strengthening the legal basis of SBP. Implement a uniform law across all counties for similar taxes / charges such as SBP

- Delink regulation from revenue raising and focus licenses on regulation and maximize revenue by applying appropriate revenue instruments.

- Understand burden of business contribution to county revenues -capture totality of the burden of taxes, fees and charges on the business community before setting actual rates/taxes.

- Align SBP approaches and practices across the counties by establishing nationwide standards and criteria for SBP administration and management (Identify the institution to champion this effort).

- Link SBP revenues to service delivery.

- Reconsolidation of all licensing charges into SBP.

- Justify SBP fee increases e.g. –need for indexation for inflation.

Public Participation

- Ensure effective public participation with regard to preparation and enactment of finance bills –share draft bills with the business community for input prior to presentation to the County Assembly and conduct civil education prior to public consultation. This will improve the quality of public participations.

- Implement harmonized public participation legislation across all counties.

- Harmonize management of vehicle branding fees –Fees charged at primary location of business should be recognized across all counties in order to mitigate against multiple payments.

- Utilize forum on Intergovernmental Relations to champion Ease of Doing Business agenda at County level.

- Counties and the business community to hold fora where issues raised are forwarded to the COG for consideration and to address rates/fee inconsistencies.

- Consider introduction of municipal infrastructure grants to cater for high infrastructural costs in urban area.

Property Taxation

Property Rates are mandated by the Constitution as a revenue source for County Governments. Poor Administration of property taxation has made it a weak source of revenue for the counties, as compared to international benchmarks. Counties were encouraged to expand their tax base to increase their revenues instead of relying on business licenses and cess for their growing budgets. To enhance county revenue collection from property rates, counties were encouraged to update their property registration rolls and valuation.

Also, to partner with the KRA for collection and enforcement of property taxes and other county revenues.

Drafting National and County Policy and Legislation

- The national government should consider adopting national framework legislation for adhering to a process which have to be followed by counties for purposes of introducing new taxes and levies with the view to aligning it with the economic unity principles as enshrined in the Constitution of 2010 (art 209(5)).

- The national framework legislation adopted should stipulate the procedure of putting county tax and levy proposals on a so-called allowed list.

- Importantly, the county tax proposal should include evidence of negotiations with the KRA reflecting on whether the Authority could not assume the revenue administration of the proposed tax or levy.

International and Regional Trade Facilitation Seminar

October 9, 2015

International and Regional Trade Facilitation Seminar

The Kenya Flower Council attended a seminar organized by the Ministry of Foreign Affairs and International Trade and funded by Trade Mark East Africa. Three key issues were discussed: The World Trade Organization (WTO) basic principles, meaning and implications to business, the Economic Partnership Agreement (EPAs), and the Tripartite Free Trade Area Agreement (TFTA).


• Most Favoured Nation (MFN) Treatment – all concessions realized through negotiations are multilaterized to the entire membership without discrimination.

- For Business this could translate to more market access opportunities or more competition.

• National Treatment – internal taxes and charges and regulations are applied equally on both imported and locally produced products without any variation.

- For Business this could mean a level playing field and more fair competition.

• Recognition of a tariff as a legitimate measure of protecting a domestic market and not a quantitative restriction or any other form of non-tariff measure.

-For Business this could translates to more sales and more business profits.

• Binding - All negotiated and reduced tariffs are bound in order to make global markets predictable. (Predictability & certainty).

- Business operators prefer predictability and certainty in markets for production planning.

- Predictability and Certainty promote investments .

• Transparency - All Members Trade Policies are Periodically Reviewed and new Trade Measures notified.

- When trade rules and regulations are clearly understood and readily available, they ease the cost of doing business & compliance.

On the EPAs, the meeting was informed that consensus had been reached regarding contentious issues at the EPA negotiations. It was noted that:

• The legal scrubbing of the agreed initialed EPA text has been completed. • The legally scrubbed Agreement will be translated into 24 EU languages and Kiswahili. • Ministers will sign the agreement thereafter. • The signing is expected to be done during the first quarter of 2016.

On the status of the COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) Agreement, the meeting was informed that the Agreement shall enter into force on the 30th day after the deposit of the 14th instrument of ratification by Member/Partner States of COMESA, EAC and SADC”. Negotiations were to be finalized by 2014 and tariff liberalization implemented within five (5) to eight (8) years.

Expected benefits Of the TFTA to Kenya include:

• Expanded market for Kenya manufactured products and services; • Inflow of investment into the country and increased potential for Kenya’s investment in the region. • Enhance Kenya’s exports into the region through harmonization of policies including the rules of origin, health and safety standards, • Enhance trade facilitation which will substantially reduce the cost of doing business; • Create momentum for regional infrastructure projects; • Enhance production and competitiveness of Kenyan companies. • Enhance industrial and infrastructure development; • Create employment to the women and youth through increased trade and other economic activities; • Enhance cooperation in customs and combating of unfair trade practices.

The region has a combined population of 527 million people which is more than 57% of total population of the African Union, a combined GDP of US$ 624 billion and a GDP per capita averaging US$1,184.

The meeting was informed that the World Trade Organization (WTO) will hold its annual meeting in Nairobi, Kenya in November 2015. This is the very first time the world trade body will be hosting the event in an African country.

Kenya-Japan Investment Seminar

August 20, 2015August 20, 2015

Kenya-Japan Investment Seminar

On the 19th August 2015 the Kenya flower Council participated in the Kenya-Japan Investment seminar hosted by the Kenya Investment Authority KenInvest and Vision 2030.

The seminar was attended by a contingent of prominent business organizations from Japan seeking new opportunities in the Kenyan marketplace, their Kenyan counterparts and notable Kenyan government officials. As well as highlight the growing partnership between the two countries, the seminar set out to showcase Kenya as a favorable business destination, encourage foreign direct investment and provide a platform for businesses to interact.

Cabinet Secretary for Foreign Affairs and International Trade, Dr. Amina Mohamed reiterated the government’s continued commitment to facilitating private enterprise in the country. Other notable attendees conducted several presentations covering a wide scope of different initiatives pertinent to the country’s business environment.

The possible introduction of direct flights to Japan is of particular interest to the floriculture industry. Direct flights would further open up the Japanese market for roses and other cut flowers and as well reduce transit time and cost. Although a government to government agreement, KFC has and will to continue to lobby the initiative forward in order to expand the industry’s growth and reach.

Prof. Gitau Wainaina of Vision 2030 highlighted the projects efforts to expand the country’s renewable energy capacity. The project seeks to lower the current cost of producing 1kWh of energy by up to USD9 by way of geothermal power production. The introduction of cheaper, more sustainable geothermal power will undoubtedly result in a direct reduction in operational costs for all manufactures. The increased capacity will also provide energy access to the rural parts of the country where majority of member’s farms are located and help mitigate the power deficit and irregular supply.

The event signaled both the interest and intent the Japanese private industry is showing in the Kenyan marketplace and should spell growth not only for floriculture but the vast industries based in the country.

Energy Audit Update

August 18, 2015August 18, 2015

Energy Audit Update

The deadline to complete an energy audit as stipulated by the Energy (Energy Management) Regulation 2012, provisioned by the Energy Act 2006, is the 28th September 2015.

As per Section 6 (1) of the Energy (Energy Management) Regulation 2012, all industrial, commercial and institutional energy users consuming in excess of 180,000 kWh (classified between medium and high energy consumers) annually are required to conduct at least one energy audit every three years. Consumers who use less than 180,000 kWh (classified as low energy consumers) are not required to perform an energy audit. Failure to do so after the deadline and or to deny the commission or its agent’s access to business premises (for the purposes of the energy audit) constitutes an offence as per Section 18 (b).

Thereafter owners or an occupier of designated facilities are liable to a general penalty not exceeding one million shillings and or a prison term not exceeding one year, Section 19. It is important to note that upon completion of the energy audit an annual implementation report will be required as per Section 9 (1). Delay in submitting the annual report attracts a daily penalty not exceeding thirty thousand shillings.

In response KFC vetted and pre-qualified energy audit firms in order to secure the most favorable price together with experience for the interest of the members. The general audit covers the general requirements in the Energy (Energy Management) Regulation 2012. An Investment Grade Audit will cover both the general requirements and include a guideline on energy saving investment projects, budget and possible payback period. Both the GA and IGA report should outline possible energy and financial savings in the energy management plan. By the deadline of 28th September 2015 the following documents are expected by ERC; energy audit report, energy management plan and the energy policy.

To apply for the audit and receive the necessary documents, please contact us at