By Valerie Atieno and Hanab Hassan
Introduction
Pyrethrum is a natural insecticide grown in high-altitude regions and thrives due to favourable climate and soil conditions. Its rising global demand creates employment opportunities across the value chain from production to consumption. The pyrethrum value chain is governed by the Pyrethrum Act, 2013, which streamlines operations while promoting efficiency and quality. Also, the National Agricultural Policy Framework and Crops Act, 2013 enables innovations, technology and timely farmer payments. This blog explores the potential of Kenya’s pyrethrum industry, examining how its value chain can boost employment.
Status of Pyrethrum Value Chain in Job Creation Progress in the Pyrethrum Sector
Creating jobs through production and value for pyrethrum
The area under pyrethrum grew by 134 per cent to 9,362 acres in 2023, aligning with the Bottom-Up Economic Transformation Agenda that targets to increase pyrethrum cultivation to 80,000 acres by 2027. Dried flower earnings rose from Ksh 236 million in 2022 to Ksh 512.4 million in 2023 while extract earnings grew from Ksh 598.1 million in 2022 to Ksh 1,136.2 million in 2023, due to increased production and prices. Figure 1 shows that despite lower volume production, pyrethrum extract generates a higher value per kilogramme, indicating substantial potential for value addition.
Figure 1: Pyrethrum flowers and extract production and value, 2019-2023
Source: Agriculture and Food Authority: Miraa, Pyrethrum and other Industrial Crops Job creation along the pyrethrum value chain
The value chain starts with input supply, creating jobs in seed and fertilizer production, land leaseholds and extension services. For instance, Kentegra Biotechnology provides high quality planting materials and trains over 20,000 farmers, thus employs extension
officers and agronomists. The Kenya Plants Health Inspectorate Services has licensed three nurseries to provide planting materials to 6,000 farmers.
The production and farming stage involves thousands of smallholder farmers, often in cooperatives, that hire casual laborers for land preparation, weeding and harvesting. Initiatives such as the Daisy Project led by DanChurchAid have enhanced employment by supporting 28,000 farmers. Over 10,000 farmers trained by Kentegra also engage local workers creating consistent rural employment.
The aggregation and transportation stage managed by cooperatives, brokers or self-help groups, employs workers to collect and transport dried flowers to processing centres. Logistic coordinators, transport operators and aggregation site works ensure smooth flow of produce along the chain.
The harvested flowers are then processed by key players such as the Pyrethrum Processing Company of Kenya, that hire factory workers, technicians and quality assurance staff to process flowers into high-value products such as Pale Refined Extract. Kentegra alone aims to process 300,000 tonnes of pyrethrum by the end of the year and expand to 750,000 tonnes by 2025. Africhem has contracted 333 farmers whereas HighChem has 62 farmers.
The chain concludes with distribution and marketing, with 97 per cent exported and 3 per cent sold locally. This creates roles in logistics, export management and product marketing.
Challenges and Emerging Issues to Pyrethrum Farming
Inadequate policy and planning: Low farmer participation in policy making, insufficient integration of pyrethrum in county budgets and irrelevant agricultural policies affect pyrethrum productivity. The Pyrethrum (Repeal) Bill 2024 further proposes to repeal the Pyrethrum Act that conflicts with the Crops Act, undermining the sector’s governance.
Market challenges: Poor marketing and competition from cheaper synthetic products lead to reduced profitability. Over 50 per cent of farmers also cite volatility in pyrethrum prices and limited access to ready markets as significant challenges.
Knowledge gaps: Losses at the production stage in the value chain range from 5-10 per cent, due to limited training in agroeconomic management practices, climate resilience and modern infrastructure, hindering optimal productivity.
Limited access to finance: Only about 20 per cent of pyrethrum farmers access credit for pyrethrum production limiting their ability to purchase farm inputs. Delays in payments make it harder to invest and sustain their operations.
Opportunities for Pyrethrum Farming
Technology and innovation: Integrating technology into pyrethrum farming creates jobs in mechanized planting, irrigation systems and tissue culture propagation. Roles in research and development such as agronomists, engineers, mobile app developers and researchers further emerge from innovations improving yields and pest resistance.
Value addition: The rise in pyrethrum flower exports and higher prices is directly linked to value addition, creating job opportunities in research, product development, processing, quality assurance and marketing. Scaling up the extraction process through
production of pesticides, animal feed, lotions, shampoos and gels maximizes profitability in the sector.
Empowerment of women and youth: Women and youth make up 20 and 15 per cent, respectively, of the sector’s workforce. More can be engaged along the value chain by increasing access to inputs and credit, modern farming techniques and synthesizing practical agricultural skills into the school curriculum to make farming more sustainable.
Conclusion and Recommendations
The pyrethrum value chain has great potential to leverage value addition, technological innovations and strategic empowerment to boost employment. This blog recommends:
- Formulation of inclusive policies: Involvement of farmers by National and County governments in all phases of the policy making process ensures the development of effective policy measures.
- Market diversification: Expand both local and international markets by exploring value added products and engaging in cooperative marketing to enhance competitiveness.
- Provide targeted education, research and capacity building: Trainings on agroeconomic practices, mechanization, value addition and marketing enhance productivity and create employable skills.
- Expand access to finance: Increase financial support mechanisms such as low- interest loans, grants, microfinance programmes or subsidies especially to women and youth.
- Leverage technology and innovation: Integrating advanced technology enhances productivity while fostering skilled employment across the value chain.
