The government is preparing to take a decisive step toward restructuring the troubled pyrethrum industry, with Agriculture Cabinet Secretary Mutahi Kagwe announcing that the Cabinet will soon deliberate on a proposal to lease the Pyrethrum Processing Company of Kenya (PPCK) to a private operator.
Appearing before the Senate on Wednesday, Kagwe said the leasing plan—already outlined in a Cabinet Memorandum he submitted—enjoys the full support of PPCK employees, who believe private-sector participation is essential to reviving the once-vibrant subsector.
He described the move as a necessary turning point after years of declining productivity and financial instability.
Kagwe painted a bleak picture of PPCK’s financial health, noting that the agency currently generates only Sh35 million annually, with its best performance in recent years reaching Sh60 million.
“There is simply not enough money to sustain the organisation itself,” he told Senators, adding that PPCK has received no research funding despite research being key to expanding production and regaining global market confidence.
The CS also disclosed that pyrethrum farmers are owed Sh10 million for deliveries made between August and October.
He assured the Senate that the Government would settle the pending payments immediately.
However, he stressed that delayed farmer payments are only a symptom of deeper structural problems.
According to Kagwe, PPCK is weighed down by a massive Sh3.5 billion debt—comprising unpaid supplier bills and pension arrears.
A proposal to sell some of the corporation’s assets to offset part of the debt has stalled, he said, because valuation reports were delayed, and “no assets have been sold to date.”
Under the proposed leasing model, the Government intends to stabilize PPCK before inviting a private operator to take over.
Kagwe said this will require a full cleanup of the organisation’s balance sheet, a fresh valuation of its assets and comprehensive due diligence to ensure the transition is transparent and commercially viable.
He argued that the long-term structure envisioned under the leasing plan mirrors successful models in competitive, private-sector-driven industries.
In his wider briefing to the Senate, Kagwe highlighted ongoing Government initiatives to strengthen the pyrethrum value chain, including distribution of clean planting materials, enhanced extension services and alignment of local production with international standards to secure export markets.
The CS maintained that despite the financial burden and operational weaknesses facing PPCK, the Government remains committed to protecting growers, stabilising their payments and positioning Kenya’s pyrethrum sector for global competitiveness.
He said the leasing proposal represents a pragmatic and sustainable solution to revive the sub-sector, noting that the Cabinet’s approval will pave the way for a modernized, efficient, and investor-supported production and processing system.
