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Kenya announces reforms to VAT bottlenecks to aid agriculture exports

Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe has announced sweeping new government interventions for agricultural exporters, to be anchored in the Finance Bill 2026 that will be tabled in Parliament in March, in a major boost for Kenya's export-led growth strategy.

Speaking during the official launch of the Flamingo Group Investments (FGI) Expansion Project in Naivasha, Kagwe said the new measures are designed to unlock reinvestment, protect jobs and restore exporter confidence after years of cash-flow pressure caused by delayed VAT refunds, high levies and rising logistics costs.

"We are fixing the exporter ecosystem deliberately and permanently. The Finance Bill 2026 will ensure that exporters of agricultural produce are competitive, liquid and able to reinvest in Kenya," Kagwe said.

The reforms are expected to unlock billions of shillings in stalled exporter capital and accelerate reinvestment in horticulture, tea, coffee, fresh produce and livestock value chains. The announcement coincided with Flamingo Group's launch of a KSh 2 billion expansion programme, involving annual investments of KSh 644 million for the next three years, the creation of 500 new direct jobs, and expanded value-added bouquet production for export to Europe and the UK.

Read more at Horti News

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