Africa-Press – Kenya. Agriculture Cabinet Secretary Mutahi Kagwe has revealed plans to lease the financially struggling Pyrethrum Processing Company of Kenya (PPCK) to private investors.
On Wednesday, November 19, the agriculture boss said that the proposal has been given a go-ahead by the company’s employees, who agree that leasing the company is the only viable solution to boost its profitability, and is currently awaiting cabinet approval.
According to Kagwe, the company has been lacking resources and financial allocations, which have crippled its ability to run operations smoothly, thus affecting the country’s pyrethrum value chain.
Before leasing the company, the government will ensure that it cleans up PPCK’s balance sheet, undertakes a fresh valuation of its assets, and ensures due diligence before a private operator can take over control, according to the CS.
“The CS revealed that PPCK’s current financial performance is unsustainable, with the organisation generating only Ksh35 million annually, its best being Ksh60 million,” a statement from the Ministry of Agriculture read.
“He noted that the agency not only lacks adequate resources to run its operations but also has received no allocation for research, a critical component for reviving the pyrethrum value chain,” it added.
The Pyrethrum Processing Company of Kenya processes, produces, and markets pyrethrum and pyrethrum-based products, while also supporting the industry through research and farmer assistance.
Some key activities of the company include extracting pyrethrins for use in natural insecticides, promoting quality seeds and farming techniques, and ensuring the quality control and marketability of pyrethrum extracts for both local and international markets.
Currently, according to the CS, the company has a debt of Ksh3.5 billion, owed to suppliers and in staff pension arrears.
Kagwe further noted that the company owes Ksh10 million to farmers for deliveries from August to October, a debt that he assured the government will clear immediately.
“Kagwe reaffirmed that while PPCK’s challenges are significant, the Government remains committed to protecting farmers, stabilising payments, and positioning the pyrethrum sector for global competitiveness under a modernised, private-sector–driven policy framework,” it added.
To elevate the country’s pyrethrum value chain, Kagwe assured that the government is laying out other strategies, including the distribution of clean planting materials, expansion of extension services, and alignment of production standards with international regulatory requirements to secure export markets.
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