Finlays to close two flower farms in Kericho due to labour cost

KERICHO, KENYA: James Finlays Kenya Limited has announced plans to close two of its flower farms in Kericho as a result of high labour costs.

The move is likely to affect nearly 1,700 employees.

The company plans to close Chemirei and Tarakwet farms, both totaling 70 hectares over a two and half year period with eventual closure scheduled for December 2020. 

“This has been an extremely difficult decision, but labour costs in Kericho are significantly higher than other locations in the flower industry in Kenya. This has caused the Kericho investment to become uneconomic and non-competitive,” said Steve Scott, General Manager of Finlay Flowers

He added, “Three lots of industrial action against the company in the last two years has also contributed additional pressure on the viability of the business.”

Nonetheless, Finlays intends to expand their operations on Lemotit Farm in Londiani by over 60 per cent over the same period.

Finlays Human Resource Director Daniel Kirui, said that a phased closure had deliberately been chosen in order to minimize the impact on the lives of the majority of employees and their families.

“Redundancies would be carried out in accordance with the laws of Kenya and the Collective Bargaining Agreement,” he said.

Finlays started growing flowers in Kericho in 1989 and is one of the biggest companies in Kenya with nearly 3,000 people employed and 115 hectares of crop planted, most of which are roses bound for supermarket in the United Kingdom.