This archive report was first published on 20 May 2020.
Published on May 20, 2020, Oserian, a flower farm on the shores of Lake Naivasha in Nakuru County, Kenya, has taken drastic measures to stay afloat amidst the COVID-19 pandemic.
The farm, which is Africa's largest rose producer, has sent 800 of its 1,200 workers on unpaid leave. This decision comes after the workers rejected the farm's offer to defer their salary payments by 50% until the end of the pandemic.
According to the Kenya Flower Council, the COVID-19 pandemic has severely impacted the flower industry, with daily orders slashed by half due to movement restrictions, particularly in Europe, which accounts for 70% of Kenya's cut-flower exports.
Although the demand for flowers slightly increased during Mother's Day, the farm lost about 30% of its potential sales due to a shortage of experienced labor. However, production has since returned to pre-Mother's Day levels.
Notably, the management staff at Oserian have been taking a 50% deferred salary since February, while the horticulture sector as a whole recorded a KSh8 billion ($75.4 million) net loss in March due to the pandemic's effects.
The flower industry is a significant contributor to Kenya's economy, with the country being the world's 4th largest flower exporter. In 2018 and 2019, cut flowers earned the country KSh113 billion and KSh104 billion, respectively, creating jobs for close to 150,000 people.
