Finlays Flowers to close its farms in Kenya
Flower grower and exporter, Finlays Kenya has announced that they will shut down two farms as from December 25. Finlays Flowers has pointed out significant challenges in the international market and minimal returns as their main reasons for this impending closure.
“Due to an oversupply in the European Market and a decreasing demand for roses, the price has remained very low,” said Finlays Kenya GM Steve Scott in a statement dated October 18.
Closure of the two farms was first announced by the UK based company back in April last year where the GM first lamented that labour costs in Kericho are significantly higher than other locations in Kenya, causing the Kericho farms to be uneconomic and uncompetitive.
"It is no secret that in the last 18 months, the flower industry has been facing severe challenges...As a result, the directors have made the decision to close Chemirei and Tarakwet farms earlier than initially communicated. The final closure date will now be December 25," read the statement.
“We have also experienced a weakening exchange rate, extreme weather conditions and high labour costs.”
Finlays has in the past endured massive losses especially after a workers’ strike that paralysed its tea processing arm and also caused significant destruction of property.
"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."