The Kenya Flower Council (KFC) is warning of looming job cuts in flower farms following the government's decision to increase water tariffs by more than 400 percent.
The council noted that the increasing the tariffs from 0.5 cent to Sh2.50 per unit would have a major impact on the farmers who were heavy users of water.
Last month, the government gazetted the Water Resources Regulations of 2021, which seeks to increase water tariffs for all consumers.
This comes at a time when water levels in various rivers, lakes and dams across the country have dropped sharply due to the on-going drought that has affected more than 30 counties.
According to the council CEO Clement Tulezi, the sector is already one of the highly taxed by the government raising concerns of sustainability among farmers.
He said the new tariffs are untenable mainly to small-scale flower farmers already struggling with the high production costs.
“Flower farmers are heavy water users and the new tariffs will definitely affect production at a time when the sector is facing tens of challenges,” he said.
Tulezi wondered if the government is genuine on its pronouncement of giving incentives to farmers as promised by the president yet the National Treasury is introducing new taxes.
He said the high cost of electricity; fertiliser, labour, water and airfreight have pushed up production costs in the floriculture sector.
“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,” he warned.
However, the chairman Lake Naivasha Water Resource Users Association Enock Kiminta said the increase in water tariffs is timely.
He said for years government institutions dealing with water services have remained underfunded and could not offer required services.
“Under the new regulations, there will be a conservation levy which will be used to conserve catchment areas which are currently under threat,” he said.
He noted that for years, many companies including the flower farms had continued to benefit from water without knowing the source and the efforts involved in conservation.
“We welcome the increase in the water tariffs and we are demanding that part of the funds collected should go towards supporting conservation efforts,” he said.
Kiminta termed the water situation in Lake Naivasha Basin as worrying with rivers and dams drying by the day due to the drought and over abstraction.