The government is targeting to privatize the pyrethrum sector in what could see Pyrethrum Processing Company of Kenya put up for sale.
According to the Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe, the government is seeking to expand private sector participation in commercial farming as a way to expand food production, create jobs and increase the country’s agricultural products exports.
“If you look at what we have done over the last couple of months is the privatization of the sugar sector, moving the sugar management from government management to private sector management,” said Kagwe during the 5th Agriculture Summit organized by the Agriculture Sector Network (ASNET).
He added, “We will do the same with pyrethrum. We will move pyrethrum from government management to private sector management. This is not by mistake, this is policy.”
Under revival plans for the pyrethrum sector, the government targets to increase production of dry pyrethrum flower to at least 10,000 tons from the current 942 metric tons by expanding acreage under cultivation to 9,624 acres from 4,000 acres as of 2022. PPC currently has assets worth Ksh 5.3 billion including land total 5.29 hectares of land.
Speaking at the Summit, ASNET Chairman Dr Bimal Kantaria said the privatization of agriculture will help unlock the country’s agriculture potential by attracting private sector investment.
“Sugarcane sector is now privatized. Hopefully by next year we will start exporting sugar from this country. The private sector involvement in sugarcane has been extremely strong. We are very happy about the fertilizer subsidy programme, our request to government is to open up for more fertilizer including soil conditioning material like lime,” said Dr Kantaria.
Under agriculture commercialization plans, the government is also targeting to expand the country’s agriculture production capabilities which also involve leasing of at least 1.5 million hectares of land to private sector for commercial farming.
“The private sector is very keen to participate in that. We have got several large growers in Kenya wanting to invest in that project. They want to take thousands of acres to grow wheat and maize,” said Dr Bimal Kantaria.
Through private commercial farming, the government anticipates to reduce the country’s food import bill which currently stands at Ksh 500 billion annually.
This year’s Agriculture Summit which brings together industry players, government and youth targets to explore means of advancing agribusiness through innovation.
