Finlays shut down their farms, Chemirei and Tarakwet, in Kericho (Kenya) on 25th December. However, they will continue to expand their Lemotit farm in Londiani, and they will double the size of their packhouse. But what is the reason for the closedown of the Kericho Farm? What will happen with the employees and how will they continue? We had a chat with Piet Kelderman, Commercial Manager of Finlay Flowers who explained it all.
The shutdown – costs too high
In April 2018 Finlay Flowers announced that it would be closing its operations in Kericho over a three year phased program. Recently, the company decided to accelerate the closure and brought the date forward by twelve months. But what was the reason for this decision? “The costs”, says Kelderman, “Specifically around labour. When Finlay Flowers started in Kericho in 1989, its labour costs were aligned with the tea industry and it remains like this to this day. The salaries are higher – approximately twice as high as the rest of the flower industry in Kenya and this has made the farms in Kericho uncompetitive.”