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Nairobi — The government is considering budgetary allocations to clear part of the more than Sh12 billion VAT refund backlog owed to flower exporters while pursuing structural tax reforms aimed at ending the recurring cycle of refund claims that has weighed on the sector for years.
Speaking on the sidelines of the International Floriculture Trade Exhibition (IFTEX) currently underway in Nairobi, Trade and Investment Cabinet Secretary Lee Kinyanjui acknowledged that delayed VAT refunds remain a major challenge for Kenya's floriculture industry.
According to Kinyanjui, the government was working with stakeholders to address both the historical arrears and the broader tax framework affecting exporters.