Pyrethrum agency to license firm eyeing factory, exports

Workers harvest pyrethrum at a farm in Molo, Nakuru. FILE PHOTO | NMG 

By GERALD ANDAE

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Summary

• Highchem is one of the four companies that applied for a licence to process pyrethrum after the government invited private players to inject new capital to revive the ailing sector.

Pyrethrum Directorate is seeking to license Highchem East Africa to invest in the production, processing and export of the cash crop, making it the third investor to get the permit in the last one year.

In a gazette notice dated March 29, the firm will be allowed to set up processing plant on Mogadishu Road in Nairobi, subject to views from stakeholders.

Highchem is one of the four companies that applied for a licence to process pyrethrum after the government invited private players to inject new capital to revive the ailing sector.

“Notice is hereby given pursuant to the Crops Act, Agriculture and Food Authority proposes to give licence to the following applicant (Highchem),” read the gazette.

The regulator had said the process of licensing three firms was at an advanced stage last year and expected to issue the licences before the end of 2017. Chinese firm Senju Development Company that is setting base in Uasin Gishu has sought a licence to deal in the crop.

One of the requirements for firms seeking a processing certificate is to prove access to 300 acres for development of the crop.

They also need to have contracted 300 farmers to ensure consistency in production once the factory starts operations.

READ: China firm among four to invest in pyrethrum sector

This is the latest attempt by the government to revive the industry that is now producing about 300 metric tonnes extract of pyrethrum from 20,000 in early 1970s.

Until the sub-sector went under Kenya was a major producer of the crop in the world, accounting for 70 per cent of the total supply.

Most of the pyrethrum produced is meant for export with the local market consuming less than two per cent.

Recent statistics from the directorate indicate that the volumes of flowers supplied to the Nakuru-based State processor dropped from 390 metric tonnes in 2014 to 290 tonnes last year with that for 2017 expected to dip further.

In 2014, the extract from pyrethrum exports earned the country Sh200 million. In 2015 the country received Sh207 from the crop followed by Sh120 million last year.

The government is in the process of loosening grip on the sector after years neglect.