Counties faulted on land leases, high business levies

The Agriculture Employer Association (AEA) has faulted county governments on land leases and high costs of doing business.

Speaking on Saturday evening during the organization’s annual general meeting, the AEA chairman Abdi Sora said some of the governors had fuelled uncertainty in some of the plantations through their utterances.

He said while it was clear the leases were reduced from 999 to 99 years, the sanctity of a title deed should be protected by the devolved governments.

“In the larger Laikipia County, we have noted an increase in illegal grazing and encroachment into property in ranches,” said Mr Sora.

He said the area has experienced loss of life and property, calling on the two levels of government to bring the menace to an end.

He cited some of the plantations where the governors have fuelled anxiety by their utterances, causing uncertainly in plantation as Murang’a, Kiambu, Nandi Hills and Kericho.

“Some of the county governments are giving the issue of land leases a misleading interpretation,” noted Mr Sora.

The AEA chairman also lamented about the high cost of doing business in counties, saying labour costs remained one of the highest in the region.

He decried numerous levies charged by the two levels of government as well as the cost of electricity as some of the challenges the vibrant sector was facing.

Mr Sora however, said Kenya remained the lead exporter of rose cut flowers to the European market, with a market share of 38 per cent.

“Approximately 50 per cent of exported flowers are sold through the Dutch Auctions, although direct sales are growing,” he said.

He said over 25 per cent of exported flowers were delivered directly, with the Kenyan flowers being sold in more than 60 other countries.

Mr Sora said according to the Horticulture Crop Directorate (HDC) 2015 report, the floriculture industry earned the county over Sh62.9 billion.