Tax Holidays, Cheap Land and Labour – Kenya Flower Firms Are Relocating To Ethiopia

Incentives such as tax holidays, cheap land leases and low cost labor offered to horticulture investors by Ethiopia are proving too attractive to foreign flower firms operating in a difficult environment in Kenya. In 2015, five major investor in Kenya’s flower sector relocated their farms to neighboring Ethiopia and more companies are expected to make the move this year, according to the Kenya Flower Council (KFC). There is consensus among flower producers that Ethiopia has an edge over Kenya in tax incentives and better access to new markets to the US owing to the direct flights it operates through its national airline. Read more on this