Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has explained why the government intends to lease the Pyrethrum Processing Company of Kenya (PPCK), saying the firm is no longer financially sustainable.
Appearing before the Senate plenary on Wednesday, Kagwe said PPCK generates only about Sh35 million a year, with occasional peaks of up to Sh60 million—far below what is needed to support operations. The company now carries an accumulated debt of Sh3.5 billion.
Kagwe told Senators that the Ministry is working with the National Treasury to lease the company to a private operator, arguing that this is the only way to revive its performance and restore the pyrethrum value chain.
According to the CS, PPCK has suffered from years of inadequate resources and lack of funding, including no budget allocation for research—an essential component for improving pyrethrum production.
Before leasing the company, Kagwe said the government will clean up PPCK’s balance sheet, conduct a fresh valuation of its assets, and carry out due diligence to ensure transparency.
In a statement, the Ministry of Agriculture said PPCK’s current financial state is “unsustainable,” noting the company’s low revenue and inability to run operations effectively.
Kagwe also told Senators that the government is strengthening regulations in the pyrethrum sector to ensure compliance with global standards. He cited the draft Crops (Pyrethrum) Regulations, 2024, which will guide nurseries, processors and exporters.
He added that Kenya is working to maintain access to key markets such as the United States and the European Union. PPCK’s membership in the Pyrethrum Joint Venture, an international consortium of sector stakeholders, is helping the country meet regulatory requirements, including those set by the U.S. Environmental Protection Agency and the European Chemicals Agency.
The CS noted that the government has also invested in value addition, with PPCK successfully registering and commercialising seven pyrethrum-based products used in animal health, public health, agriculture and industry.
Kagwe said the establishment of Special Economic Zones (SEZs) is expected to attract more private processors by offering affordable industrial space and incentives, further boosting the sector.
A senator sought clarification on what the Government was doing to enhance farmers’ access to certified pyrethrum plantlets and extension services. In reply, Kagwe said the Ministry was expanding access to clean planting materials through the multiplication of clonal materials at tissue-culture laboratories in Muguga and Molo. He added that the Ministry, through PPCK and county governments, was offering extension services to farmers guided by a standardised training manual to ensure uniform quality. “We are multiplying clonal materials through tissue-culture technologies to ensure farmers access clean planting materials,” the CS said.
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