This archive report was first published on 18 May 2020.
As the global coronavirus pandemic continues to spread, with over 4.35 million cases and nearly 300,000 deaths, countries are reluctant to fully open their borders and businesses. In Kenya, one of the top flower-exporting countries, the flower industry is facing a significant blow. According to the Kenya Flower Council, restrictions on movements have slashed daily orders by half, forcing firms to consider layoffs and salary cuts.
At Oserian flowers, a leading flower firm in Kenya, the situation is dire. The company has placed over 800 workers on unpaid leave after they declined a 50 percent pay cut offer. The offer was made to ease the financial impact of the pandemic, but the workers refused, citing concerns about their livelihoods.
"We have been facing financial difficulties since the emergence of Covid-19, which has impacted negatively on our cash flow," said Mary Kinyua, human resource director at Oserian flowers. "What we have been asking of our employees is to accept a 50 percent deferral on their pay, which would be paid back when things get back to normal, but they refused."
With 1,200 employees, Oserian flowers is one of the largest flower firms in Kenya. The company's decision to place workers on unpaid leave is a blow to the industry, which generated Sh104 billion in sales in 2019. Other sectors like tourism and agriculture are also being battered by the pandemic.
On Mother's Day, the firm was hit hard when orders for flowers went up amid a shortage of experienced labor. The company lost about 30 percent of what they would have sold on that day. However, the HR director noted that production had reduced to pre-Mother's Day levels.
Ms. Kinyua also revealed that the management staff at Oserian have already taken a 50 percent deferred salary since February.
