More job losses are expected in Kenya after a multinational flower firm Finlays said it is set to close its two flower farms in December 25.
According to Finlays, the cost of doing business in the country has been so high that they cannot continue keeping up and pay bills.
The directors of the firm said that they have reached the decision because the prices of roses in the European markets have dropped as a result of oversupply and decreasing demand.
In a statement released by the directors; “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 a decision to close Chemirei and Tarakwet farms earlier than initially communicated.”
In the recent months, companies in Kenya have been struggling to remain afloat with the majority of them closing down and some cutting down on their workforce, leaving thousands of Kenyans jobless.
In just a period of three months, more than 2,500 Kenyans have lost their jobs as companies such as SportPesa and Betin exited the Kenyan market.
In the case of Finlays, after the December 25, all employees will be redundant. The statement says; “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 time.”
The two farms set to be closed occupy a total of 70 hectares inside one of the largest James Finlays’ tea plantation in Kericho. The two firms had employed hundreds of residents who will now be jobless.
A year ago, Finlays had announced the closure of the two farms but was opposed by Rift Valley political elites and the Kenya Plantation and Agricultural Workers Union (KPAWU) over the compensation of the affected workers.
Finlays says the affected workers will only be paid up to their last month, December.
Here is the letter:
