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    Kenya’s Pyrethrum Industry Trapped in Debt

    6 days ago
    4 mins read
    Kenya’s Pyrethrum Industry Trapped in Debt

    Pyrethrum hit its commercial stride in Kenya as early as 1928, when farming of the flower (used to produce a natural insecticide) took root. By the 1940s, Kenya was already producing 6,000 tonnes of dried pyrethrum annually, and in the 1960s, output crossed 10,000 tonnes a year.

    For decades, Kenya dominated global supply, accounting for more than 90% of the world’s pyrethrum at its peak. But the bloom did not last. From the early 2000s onward, production collapsed. By 2006,annual output had dropped to just 1,000 tonnes, and by the early 2010s, it was estimated at a mere 250 tonnes.

    This dramatic slump cut Kenya’s global market share to less than 2%.The decline has roots in multiple failures: mismanagement under the old Pyrethrum Board, long delays in payments to growers, competition from cheap synthetic pesticides, and weakened institutional capacity.

    Why PPCK Is Deep in Crisis

    The Pyrethrum Processing Company of Kenya (PPCK), the successor of the original Pyrethrum Board, now grapples with enormous financial strain. State reports confirm that the company is burdened by Sh 3.5 bn in liabilities, mainly owed to suppliers and pensioners.

    Attempts to reverse course have failed. A planned asset sale, intended to unlock part of a Sh 6 bn asset portfolio, collapsed as the transition from the old board left ownership and valuation in limbo.

    An Auditor General report laid bare deeper rot at the heart of PPCK: its assets were undervalued, rent from its property portfolio was under-declared, and payroll records were missing tens of millions in pension and union dues. The company reportedly owes more than Sh 2 bn in pension arrears, a burden that hangs over current operations.

    To make matters worse, a Sh305.8 million extraction plant, purchased in 2006, has never been commissioned. The Auditor General warns that this machine, never put to use, risks becoming obsolete and represents a waste of taxpayer money.

    Revival Hopes, But With Heavy Caveats

    There is, however, a flicker of hope. The government has proposed leasing PPCK to a private operator once the balance sheet is cleaned up, following a fresh valuation of the company’s assets. Agriculture CS Mutahi Kagwe argues that leasing is the best shot at reviving the pyrethrum value chain sustainably.

    True to its word, Nairobi is injecting ambition into the plan: Sh 450 million has been earmarked to upgrade the processing plant. There’s also a renewed push to expand cultivation, the target is to bring 30,000 acres under pyrethrum by 2027, working closely with county governments and farmers.

    On the farm level, smallholders are finally expressing optimism. At a recent agribusiness summit, PPCK showcased a new suite of ecofriendly insecticides, from spray bottles to residual pest control solutions, all made from locally grown pyrethrum. These products not only appeal to farmers but also to global markets wary of synthetic chemicals.

    Why This Matters for Kenya

    Reviving pyrethrum isn’t just about a forgotten cash crop. It’s about economic sovereignty, sustainable agriculture, and green innovation. With rising demand globally for organic or low residue pesticides, Kenya has an opportunity to reclaim its place in a niche market, but it will only happen with real reform.

    The failure to protect PPCK and its farmers is not just financial: it's a moral and policy failure. The debts owed to growers and retirees reflect decades of missed promises. Leasing the company may rescue it in technical terms, but unless trust is rebuilt, the revival risks being superficial.

    Kenya’s pyrethrum industry was once world leading. Today, it stands at a crossroads: deeply indebted, mismanaged, but still full of potential. The government's revival plan, backed by public funds and private sector interest, could spark a turnaround, but only if reforms go deeper than surface-level fixes.

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