| Flower firms threaten to move to Ethiopia
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| Date: |
On 09/12/2006 at 08:08 AM |
| Soure: |
The Standard, Kenya |
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By Karanja Njoroge
Investors in flower farms around Naivasha are threatening to relocate their business from the country due to poor infrastructure and insecurity.
Workers grade flowers at a horticultural farm. Large scale farmers from Naivasha are threatening to relocate to Ethiopia, citing poor infrastructure. — File Picture
Some of the flower farms in the area have already started investing in Ethiopia, claiming that new farmers are enjoying favourable economic terms there.
As a result, panic has gripped workers at the multi-million shilling industry due to fears of massive lay offs after possible relocations and declining profits in the international market.
Sher Agencies, a leading world producer of rose flower, has already acquired a large tract of land in Ethiopia. The firm produces 600 million stems annually.
Better road network
According to Human Resource Manager Mr Martin Kamwaro, Ethiopia is offering them a 10-year tax holiday.
"The country has better road network and has a well equipped security system," he said.
However, despite expanding their business to Ethiopia due to the conducive conditions, Sher Agencies has ruled out closing down their investment in Kenya.
Currently, Kenya is the leading producer of cut flowers to the European Union, supplying 31 per cent of the total export to the market. Until recently, the country’s horticultural industry was poised to overtake tea and tourism as the leading foreign exchange earner.
"Horticulture contributes 12.8 percent of the 24 per cent that Agriculture contributes to the Gross Domestic product (GDP)," says the secretary of the Workers Rights Watch, Edward Indimuli.
Poor infrastructure
Kijabe Limited, another leading farm, is believed to have sold off their flower farm and sought greener pastures in Ethiopia. Two other Dutch Investors at the Three Point farm are among those who have relocated to Ethiopia, heightening fears that others could follow suit.
Naivasha has more than 37 flower farms with an estimated workforce of over 40,000 people. Speaking during a tour by a parliamentary committee on health, housing, labour and social welfare, the investors voiced concern over poor infrastructure and rising insecurity, saying that they might consider relocating if the problems are not addressed.
Sher Agencies Chief Executive, Mr Gerrit Barnhoon, said they were incurring heavy expenses due to the poor state of the Naivasha- Mai Mahiu road.
"We are incurring heavy losses due to frequent breakdown of our vehicles and delay of our produce in reaching at the market," he said.
Rising insecurity
The farmers appealed to the committee to liaise with the Ministry of Transport to allow them to use the Nakuru-Nairobi highway temporarily.
"Despite flowers being bulky, our lorries rarely exceed nine tons, which is convenient for our roads," he said.
Barnhoon decried the rising insecurity in the area, saying it was causing anxiety among the leading investors due to frequent attacks.
The security situation, he said, was scaring away potential investors and it should be urgently addressed. His Oserian counterpart, Mr Ron Fasol said bad publicity was hurting the multi- million-flower industry.
"We are doing a lot of disservice to our flower industry which is one of the world leaders," said Fasol.
Poor working conditions
While other countries are busy promoting their fast growing flower industries, he said, their Kenyan counterparts were painting it in bad light.
"We are doing a lot to our workers to uplift their living standards and protecting the environment," he said.
He called on the committee to rein on flower farms giving the sector a bad name due to poor working conditions.
Responding to the investor’s complains, the committee chairman, Mr Zebedeo Opore, said his committee will present their grievances to the Government.
Country stands to lose billions
The committee will petition the Transport Ministry to allow them use the Nakuru-Nairobi highway as a stopgap measure.
"We are going to raise the issue with relevant ministry to ensure your problems are addressed," said Opore.
The committee expressed concern over the relocation, saying it would hurt the industry.
"The country stands to lose billions of shillings if the trend of relocation continues and the issue has to be urgently addressed," said Opore.
He praised the flower industry for improving the working conditions in the multi- million sector. However, he said, the housing condition for the farm workers was not up to required standards, and called for their improvement.
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