US Backs Revival of Kenya’s Pyrethrum Sector with Multimillion-Dollar Investment

Naivasha, Nakuru County – The United States government has committed to revitalize Kenya’s pyrethrum industry, historically a key economic sector, by investing Sh1.6 billion (approximately US Dollars 12 million). The announcement was made by the US envoy to Kenya, Ms. Margaret Whitman, who elaborated on the ongoing construction of a modern pyrethrum processing facility in Naivasha Sub-County. The Kentegra plant, worth Sh1.4 billion, is designed to support over 90,000 small-scale pyrethrum farmers.

According to Kenya News Agency, the United States aims to aid Kenya in reviving the pyrethrum sector, which experienced a downturn in the 1990s due to corruption and mismanagement. This sentiment was echoed during an investment roundtable forum in Naivasha Sub-County, hosted by Governor Susan Kihika and attended by investors and companies from the United States.

Ms. Whitman highlighted the significant investment by the United States through Kentegra Limited in the pyrethrum sector, currently engaging 9,000 farmers with plans for expansion. She pointed out Nakuru’s strategic location as ideal for investment and the forum’s role in fostering trade and investment opportunities, with potential benefits for local employment and the broader Kenyan economy.

Governor Kihika lauded the processing plant as a transformative development for small-scale pyrethrum farmers and stated her administration’s commitment to increasing the land area dedicated to pyrethrum farming. She acknowledged the challenges facing the sector, including diseases, high production costs, and insufficient seedlings, and reaffirmed her government’s efforts to address these issues.

Underlining the decline in Kenya’s global pyrethrum export share, Governor Kihika expressed determination to revitalize the industry. She outlined plans to facilitate ease of doing business in Nakuru, including the introduction of a single business permit.

Kentegra Biotechnology, a key player in this revival, is set to receive significant financial support from Finnfund and the United States Development Finance Corporation (DFC) for expanding pyrethrum flower production and processing. This investment aims to enable Kentegra to cater to the needs of 90,000 small-scale farmers and tap into the growing demand for organic pesticides and ‘greener’ food production methods.

Governor Kihika noted the anticipated positive impact of DFC’s support, particularly in increasing the participation of women farmers and providing them with stable income and training. The completion of the Kentegra plant is expected to generate 600 direct jobs and contribute to breaking the cycle of unemployment.

The governor also highlighted Nakuru County’s commitment to the pyrethrum sub-sector, including a financial allocation of Shs.27 million in the next fiscal year and a public-private partnership to revamp pyrethrum production. The partnership will involve recruiting new farmers and providing them with seedlings, with the aim of reclaiming Nakuru’s status as a leading pyrethrum producer.

Efforts to cultivate 30,000 acres of pyrethrum in Nakuru are underway, with plans to provide farmers with high-quality planting materials. The County is also working on establishing nurseries in collaboration with the state-owned Pyrethrum Processing Company of Kenya (PPCK) and private entities.

Governor Kihika’s administration has identified the revival of the pyrethrum industry as a flagship project under the national government’s Vision 2030, aiming to create employment and wealth. The county plans to upscale value addition through the new processing factory in Naivasha and the proposed County Aggregation and Industrial Park at Egerton Agro-City.

The governor confirmed collaboration with various stakeholders, including the Ministry of Agriculture and PPCK, to ensure the full revival of pyrethrum production. This includes the provision and distribution of quality seedlings and training for extension workers in partnership with Egerton University.

Kenya, once a global leader in pyrethrum production, has seen a significant decline in output over the years. Current production stands at around 500 tons per year, a stark contrast to the 18,000 tons produced in 1992. The pyrethrum is grown in 18 counties, with Nakuru, Nyandarua, and West Pokot being the main producers.

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