KRA refunds 70 percent of tax claims to support flower exporters

Clement Tulezi said it received Sh 10 billion in tax refunds. He said, "at least from the exporters of cut-flowers, they were paid 70 per cent of what the government owed them, and that has continued to flow".

The Kenya Revenue Authority (KRA) refunded 70 percent of tax claims by flower export firms to boost liquidity amid the pandemic, according to a report by Daily Nation. The refund is initiated to boost liquidity for agricultural production and increase money flow in the cash constraints of COVID-19.

Clement Tulezi, the chief executive of Kenya Flower Council said it received Sh 10 billion in tax refunds. He said, "at least from the exporters of cut-flowers, they were paid 70 percent of what the government owed them, and that has continued to flow".

The cost-cutting took place because the Royal FloraHolland's auction in the Netherlands dropped Kenya's flower order by 20 percent since the European countries shifted their priority to essential items such as food amid the COVID-19 lockdown.

In his statement, Tulezi said, "If flowers are not on shelves, buyers (retailers and supermarkets) are not placing orders until they are assured they will be able to sell". He also said that orders from the US, France, Germany, and the UK have fallen significantly and it has affected the performance at the key auction.

However, Tulezi has warned of the irreparable loss of direct sales due to lockdown earlier. He said they were in touch with the KRA to expedite the payment of the balance.