Flower Farm closure in Kenya

It is no secret that in the last eighteen months the flower industry has been facing severe challenges. As a result Finlays, a large producer of tea as well as flowers, will be closing two of their farms on Christmas Eve.

In a statement issued to their employees General Manager Steve Scott wrote: Due to an over-supply in the European market and decreasing demand, the price of roses has remained very low.   As a result of this and other challenges, including a weakening exchange rate, extreme weather conditions and high labour costs, the Directors of James Finlay (Kenya) Limited have made the decision to close Chemirei and Tarakwet Farms earlier than initially communicated.

The final closure date will now be 25 December 2019, after which operations on Chemirei and Tarakwet will stop with employees seconded to Murara Plants Limited also affected by this change. All employees will be made redundant in accordance with the labour laws, existing collective bargaining agreement, their specific terms of service and will be paid their final dues in full. Junior and Senior Management who are leaving the business will be communicated to on a one to one basis.

Commenting on the news Steve told theflorist.co.uk “Although we are closing the Chemirei and Tarakwet Farms in Kericho our Lemotit Farm in Londiani will produce 54 million stems next year.

Making over 1000 people redundant is very sad but the labour costs is Kericho are over double the industry standard and despite lengthy court engagement with the Kenya Plantations and Agricultural Workers Union since 2014 over unsustainable annual pay increments sadly we have not been able to reach a solution.

Obviously we regret the closures but change is a necessity in any long-term successful business and to keep as many people employed as possible we have had to take hard decisions.