Kenya has long been the world's leading producer and exporter of pyrethrum extracts, with the country responsible for 70 per cent of the sector's production.
The natural pyrethrins in the extracts are used in making various pesticides. The extracts include crude oreoresin, refined pale extracts, superfine pyrethrum powder and pyrethrum marc (vegetable matter left over from extraction). The increase in the production of synthetic insecticides has led to a decline in pyrethrum production since 2003.
Plans are reportedly under way to license private processing firms to compete with the Pyrethrum Board of Kenya (PBK), currently the country's sole processor. Politically-connected prospective players in the industry are said to be scheming to position themselves to benefit from a liberalized trading environment and to gain control of the industry.
Six PBK directors from pyrethrum-growing regions have vowed to resist the alleged attempts to license private processing firms to compete with the parastatal. Samuel Kihiu, one of the six, said about 10 years ago there were 30,000 hectares of land under pyrethrum in the country, but today there were only about 9,000.
The controversial importation of huge amounts of partially processed pyrethrum from neighboring Rwanda is linked to a plan to take over the industry, according to the East African Standard's sources. Speaking anonymously, the sources said a powerful group that included three cabinet ministers was working to bleed the industry before starting their own large enterprise that will then dominate the industry.
The PBK signed a deal in March 2006 to purchase 100 tonnes crude extract from Société de Pyrethre au Rwanda. PBK employees allege that it is an ill-advised deal that will prejudice Kenya, and that it is aimed at running down the local industry ahead of the licensing of private processing firms.
The deal, sources now claim, will see millions wasted to buy "substandard pyrethrum." One consignment, for which PBK paid 149 million Kenya Shillings is said to actually be worth Sh94.5 million. So far, PBK has received three consignments of 25 tonnes each under the deal. A final consignment is due in June. Meanwhile, the government is said to owe pyrethrum farmers Sh900 million in outstanding payments.
The move by the parastatal's top management to import flowers from Tanzania and crude extract from Rwanda has been linked to an apparent plot to wind up PBK. Industry players say PBK management is encouraging growers from Tanzania, a relatively new growing country, instead of supporting Kenyan growers.
"The government has a duty to revive the pyrethrum sector," said Stephen Yakan, another PBK director. The directors asked the government to give PBK Sh1 billion to revive it the way it had done for the Kenya Meat Commission and other sectors like cotton, sugar and coffee. The board had inherited debts amounting to Sh979 million when it took over PBK management in 2004.
The directors also announced that a new pyrethrum extraction plant would be commissioned in a month’s time to replace one that was burnt down before the current board came into office.
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