The Kenya Flower Council (KFC) has cautioned that flower farms may be forced to cut jobs due to the government’s recent decision to raise water tariffs by over 400%.
According to the council, the tariff hike, which raises rates from 0.5 cents to KES 2.50 per unit, will significantly affect farmers who rely heavily on water.
The Water Resources Regulations of 2021, which aim to raise water tariffs for all consumers, were gazetted by the government last month. This is happening as various rivers, lakes, and dams across the country are experiencing a significant drop in water levels due to an ongoing drought affecting over 30 counties.
The CEO of the council, Clement Tulezi, has expressed concerns about the sustainability of the sector, as it is already heavily taxed by the government. Small-scale flower farmers, already struggling with high production costs, will find the new tariffs, particularly challenging to sustain.
Flower farmers are heavy water users, and the new tariffs will affect production when the sector faces tens of challenges.
CEO of the council – Clement Tulezi
Tulezi was sceptical about the government’s commitment to providing incentives to farmers, as promised by the president, in light of the National Treasury’s introduction of new taxes.
Additionally, he noted that the production costs of the floriculture industry have risen due to the high prices of electricity, fertilizer, labour, water, and airfreight.
The sector employs over 200,000 workers directly and the new taxes coupled with the rising cost of fuel will definitely lead to job losses.
CEO of the council – Clement Tulezi
Despite the worrying water situation in Lake Naivasha Basin, Enock Kiminta, the Lake Naivasha Water Resource Users Association chairman, stated that the water tariffs increase is timely. He explained that government institutions dealing with water services have remained underfunded for years, resulting in inadequate services. However, under the new regulations, a conservation levy will be imposed to protect catchment areas under threat.
Kiminta also pointed out that companies, including flower farms, have benefited from water without considering its source or conservation efforts. He welcomed the tariff increase and demanded that some of the collected funds support conservation efforts.
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