This archive report was first published on 29 October 2019.
Finlays Flowers Company's decision to close its Chemerei and Tarakwet flower farms in Kericho County will have a devastating impact on the local economy, with an estimated Sh1.8 billion annual loss.
The farms, which employ 1,700 workers, are set to close by December 25, according to a letter from Finlays Flowers Managing Director Steve Scott dated October 19.
The decision to close the farms is partially due to a hike in land rates by Kericho Governor Paul Chepkwony, who aims to raise at least Sh1 billion annually from multinationals operating in the county through land rates.
Belgut MP Nelson Koech, whose constituency the farms fall in, has accused the flower company of taking unilateral decisions without involving area leaders.
However, Finlays Flowers Managing Director Steve Scott has blamed oversupply of flowers in the European market and decreasing demand for the closure of the farms.
But in a past address to Lemotit flower workers, Scott let slip that the real reason for the closure is the high labour costs in Kericho, which are significantly higher than other locations in the flower industry in Kenya.
