Flower farmers warn of relocation due to collapsed Economic Partnership Agreement talks

Naivasha, Kenya: Flower farms in Naivasha are warning of mass relocation to either Ethiopia or Tanzania in the wake of the collapsed Economic Partnership Agreement (EPA) talks.

This comes as anxiety and confusion gripped over 60 farms located in the lakeside town, where 75 per cent of the flowers exported come from.

Apart from massive job losses, the farmers warned that the country stood to lose economically in the long run due to its failure to sign the agreement.

With the sector facing a new tax of around six per cent on its products, the farmers warned of a financial crisis three days after the new tax regime came into force.

Maridadi and Van Den Berg flower farms, two of the leading companies in the town, said the effects of the impasse were yet to trickle down.

Maridadi Flowers Managing Director Jack Kneppers warned that 50 per cent of the flower farms would close down by the end of next year if the current impasse was not resolved.

FINANCIAL CRISIS

Mr Kneppers  told The Standard that the new taxes spelt doom for the sector as the country's products would be competing with cheaper flowers from other countries.

"Some of the farmers, mainly those dealing in vegetables, are considering relocating to Ethiopia where the labour is cheap and their products won't be taxed. Flower farms might be forced to follow suit come next year and move to Ethiopia if the Government does not resolve the EPA issue with the European Union," he said.

Kneppers, whose farm has over 700 workers, expressed fear of job losses as farmers could not work in conditions where they were making losses.

"Flower prices in Europe are not very good as some countries are yet to recover from the financial crisis while the war in Ukraine is also affecting the market," he said.

His sentiments were echoed by Van Den Berg's Human Resources Manager George Onyango who said Kenyan produce would no longer be competitive in the European market.

He said some of the investors in the floriculture sector were eyeing Ethiopia and Tanzania in the wake of the collapsed talks.

"The move has raised anxiety in the sector and flower farmers will have no other option but to seek a more conducive environment where they can make profits," he said.

Meanwhile, the Government has blocked Naivasha residents from searching for treasure in caves in Mairagushu village.

 

Yesterday, armed security officers were sent to the sitewhere tens of youths had raided the colonial caves in search of treasure.

For the last two weeks, youths have been excavating in the caves after word went round that hidden treasure worth millions of shillings lay beneath the caves.

BRITISH SOLDIERS

The locals claimed the treasure, including gold and mercury, was left behind by British soldiers during the first World War.

Naivasha Sub-county Commissioner Abraham Kemboi yesterday said they took the step to block residents from going to the caves because they were concerned for their lives.

Mr Kemboi said sections of the caves were hanging dangerously and posed a risk to those working there.

"We are concerned for the lives of those working there. The work should be left to experts in the mining sector," he said.