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Five bid to set up pyrethrum plant in Kenya

A man works on a pyrethrum farm in Mau Narok in Nakuru County. At least five private companies have applied for licences to process pyrethrum in Kenya as the government moves to liberalise the sector. FILE PHOTO / SULEIMAN MBATIAH / NATION

By  Francis Mureithi

Writer

Nation Media Group

What you need to know:

  • Authority says it is perusing firms’ applications before deciding on who to process flowers
  • Pyrethrum farmers were allocated Sh300 million in this year’s Budget in a bid to revive the sub-sector

At least five private companies have applied for licences to process pyrethrum in Kenya as the government moves to liberalise the sector.

Pyrethrum Regulatory Authority managing director Alfred Busolo said the agency are scrutinising the documents pending the gazettement of new rules governing the sub-sector.

Due to past mismanagement, farmers have been agitating for full liberalisation although the government has been reluctant to allow other processors to compete with the former Pyrethrum Board of Kenya.

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Speaking to the Nation on Monday, Mr Busolo said the agency would ensure only qualified and credible firms are licensed.

“Our duty as a regulatory authority is to make sure the farmer is not fleeced by unscrupulous processors and that is why we are scrutinising the applications very keenly.”

FACTORY IDLE

The Nakuru factory has largely been idle due to insufficient delivery of dry flowers amid payment-delay complaints by farmers.

Mr Busolo said Monday that payments were now up to date.

“We have cleared all the pending debts and are now looking for farmers whose dues have been pending in our offices since 2003 to clean our debt books,” he said.

Pyrethrum farmers were allocated Sh300 million in this year’s Budget in a bid to revive the sub-sector that at one time was earning the country Sh18 billion in foreign exchange in the 80s.

Interestingly, this is the same amount of allocation that National Treasury Cabinet Secretary Henry Rotich allocated the sub-sector in the 2013/2014.

Most of the funds in the last financial year were used to clear debts, which the authority owed to growers. The money was also used to settle retrenched workers’ dues.

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