By Ng’wono Bwo’Otwere
The government is preparing for a major shift in the revival of Kenya’s pyrethrum industry.
Currently, the Cabinet is deliberating on the leasing of the Pyrethrum Processing Company of Kenya (PPCK).
The revelations were made as Agriculture and Livestock Development Cabinet Secretary (CS) Mutahi Kagwe appeared before the Senate on Tuesday.
Kagwe said the proposal, already captured in a Cabinet Memorandum submitted to the President, has the full support of PPCK employees, who believe that partnering with the private sector is the only realistic way to restore efficiency, competitiveness and profitability to the long-struggling sub-sector.
Kagwe did not shy away from describing PPCK’s financial state as dire.
The corporation generates only KSh 35 million annually, far below its historical best of KSh 60 million, and he noted that it lacks the funding required for even basic operations.
No money has been allocated for research, a vital component in strengthening the pyrethrum value chain.
“There is simply not enough money to sustain the organisation itself,” he told Senators, adding that the current structure is incapable of delivering the turnaround farmers have been waiting for.
He also revealed that farmers are owed KSh 10 million for deliveries made over the past three months, arrears the government has committed to clearing immediately.
Weighed down by a debt load of KSh 3.5 billion owed to suppliers and in pension arrears, PPCK has been unable to chart a path to recovery.
Although the government had at one point considered selling some of the corporation’s assets to offset a portion of the debt, the process stalled due to delays in valuation reports, meaning no assets have been sold so far.
Kagwe explained that leasing remains the most viable option, but it will require the government to clean up PPCK’s balance sheet, undertake fresh asset valuations and conduct full due diligence before any engagement with a private operator.
He argued that this model is consistent with successful global industry practices where private-sector management has driven efficiency, innovation and profitability.
“This is the only sustainable long-term structure for returning PPCK to competitiveness,” he said.
Even as Cabinet considers the leasing proposal, the government has already started working to strengthen the pyrethrum value chain.
Farmers are receiving clean planting materials, extension services are being expanded and production standards are being aligned with international regulations to secure export markets.
Kagwe assured Senators that despite PPCK’s severe operational challenges, the government remains committed to protecting farmers, stabilising payments and modernising the sector, with the goal of positioning Kenya to reclaim its historic place as a global leader in pyrethrum production.
If the Cabinet gives its approval, the leasing model will represent the most significant restructuring of the sector in decades, shifting PPCK from a loss-making State corporation to a competitive enterprise driven by private-sector dynamism.