A multinational flower company has become the latest firm to lay off workers in a growing wave that has hit major businesses in the country.
James Finlay has announced 1,700 workers will lose jobs when it closes down farms, citing high labour costs and poor prices.
In a statement, the company said it will close two farms- Chemirei and Tarakwet-by December 25. Finlay says there is an oversupply of flowers in the European markets and decreasing demand.
Rose flowers, which the company says have been fetching good profits, now have low demand in international markets.
The company further attributed the move to close its farms to weakening exchanges rates.
“As a result of this and other challenges, extreme weather conditions and high labour costs, the directors of James Finlay have made the decision to close the Chemirei and Tarakwet farms earlier than initially communicated,” says the communiqué signed by general manager Stephen Scott.
“Employees seconded to Murara plants limited shall also be affected by this change...junior and senior management who are leaving the business will be communicated to on a one to one basis.”
The firm’s general manager in charge of corporate affairs Sammy Kirui told the Star they were closing the business, noting they had earlier planned to quit in December 2020.
They brought the closure a year early the company is losing a lot of money and is no longer sustainable, he said.
Kirui stated that some workers had already left but at the end of the process 1,700 employees will have been declared redundant.
Telkom, Stanbic, East Africa Portland Cement are among the companies which have recently laid off workers.
