This archive report was first published on 21 October 2019.
Finlay Kenya, a leading flower producer, has made the difficult decision to shut down two of its farms in Kericho due to decreasing demand for flowers in Europe. The company cited oversupply of flowers in Europe as the main reason for the drop in prices of roses, making it challenging for them to operate profitably.
According to a letter from the General Manager, the firm will close Chemirei and Tarakwet farms, affecting hundreds of employees. The closure will take effect on 25 December 2019, after which operations on the two farms will cease.
Finlay Kenya's decision to shut down the farms comes as the industry faces several challenges, including a weakening exchange rate and extreme weather conditions. The company has stated that the combination of these factors has led to high labour costs, prompting the closure.
SEE ALSO: Kenya risks losing the KSh2.7 billion Australian flower market
Finlay Kenya's announcement moves the farms' closure date a year earlier than initially planned. Last year, the company announced that it would close the two farms by December 2020, citing high labour costs.
"The final closure date will now be 25th December 2019, after which operations on Chemirei and Tarakwet will stop. Employees seconded to Mutrara Plants Limited shall also be affected by the change," said Stephen Scoot, General Manager at Finlay Flowers.
