Linus Kaikai Warns Ruto After 8 Companies Shut Down

Royal Media Services (RMS) Group Editorial Director Linus Kaikai, on Thursday, February 16, called on the government to save what he termed as the 'Valentine Economy'.

In his kicker broadcasted during Citizen TV's News Gang show, Kaikai warned that eight flower companies operating in the country closed shop due to the high cost of conducting business.

Kaikai warned President William Ruto that Kenya's love promotion industry was slowly dying, leaving many heartbroken and broken.

"The government should no longer ignore the loud alarm bells from Kenya’s horticultural sector. On Valentine’s Day this past Tuesday, February 14, a day full of symbolism in flowers, the bells rang particularly loud," he lamented.

Citizen TV's Editorial Director, Linus Kaikai at Royal Media Services studios in November 2019.InstagramLinus Kaikai

He noted that the government could bring back the glory of Valentine's Day, especially, if appropriate measures were implemented to promote Kenya's floral companies.

"The Kenya Flower Council shared some very grim statistics that effectively wiped off that rosy image often painted of the country’s flower sector.

"Each of the eight cited the high cost of doing business as the reason for folding up. They simply could not cope with the cost of doing business in Kenya," Kaikai noted.

The Citizen TV anchor cautioned that a ripple effect may be created in a sector that accounts for millions of jobs, and asked Ruto to consider the closure as a cause for alarm.

Kenya Flower Council on Valentine's Day also warned the government that more flower firms could join the list of those closing shops.

The horticultural sector of Flower Exporters in Kenya ranks as the third largest foreign exchange earner after tourism and tea. Kenyan flowers are majorly exported to the European market, which consumes around 40 per cent of local flora.

While some 50 per cent of Kenyan flowers are sold through Dutch Auctions and in the United Kingdom's supermarkets which are the main outlets.

In January 2023, British High Commissioner, Jane Marriott, encouraged citizens of the United Kingdom to buy Kenyan flowers, noting that they were some of the best in the world.

Data from the National Treasury shows that Kenya earned around Ksh158 billion from 200,000 tonnes of flower exports.

"But proverbially, roses come with thorns. The flower council reports that growers in the sector pay a minimum of 45 levies yearly. Yes, 45 levies.

"Then there is the cost of freight that literally prices Kenya out in a region it ought to lead and dominate. While the cost of freight per kilo in Ethiopia is just 1.5 dollars, the cost of freight in Kenya is virtually double at 2.9 dollars," Kaikai lamented.

Kenyan taxes and transport charges are among the most expensive in East Africa.

A neat flower farm in Naivasha, Kenya.Twitter

"The freight charges in Tanzania stand at 2.2 dollars, making Kenya the most expensive country for the freight cost.

"Additionally, the flower council laments that exporters in the sector are owed up to seven years in VAT refund arrears to the tune of Ksh.15 billion," Kaikai explained.

The Royal Media Service Editorial Director asked President William Ruto to ensure that the cost of doing business in Kenya is bearable for local flower companies.

"Other than taxation, remember the 45 levies. There is the cost of electricity that is becoming insane, even for individual single-bulb lighting consumers.

"Yet this pain is no longer a sector-specific burden. And projections going forward do not look encouraging with the Ministry of Energy indicating that electricity prices will go up," Kaikai noted.

Flower farming supports over 500,000 people, including over 100,000 flower farm employees who receive their salaries directly from the companies.

By extension, the floriculture industry impacts over two million livelihoods in Kenya and outside the country.

Kenya's main flower production regions include around Lake Naivasha, Mt. Kenya, Nairobi, Thika, Kiambu, Athi River, Kitale, Nakuru, Kericho, Nyandarua, Trans Nzoia, Uasin Gishu and Eastern Kenya.

Different types of flowers in containers awaiting shipment.Google photo, credit JOC.com