Kenya to revive pyrethrum industry

Kenya has licensed Orion Export Processing Zone Ltd to undertake a value addition venture on pyrethrum.
Orion will install equipment worth $2.5 million at the Athi River Export Processing Authority near Nairobi, and expects to begin the project in 2012.

Orion’s managing director Ruo Maina, said through value addition, farmers will get good returns. The pyrethrum flower processing business is estimated at $100 million annually. Kenya has suitable soils and climate for growing pyrethrum.

“By working jointly with public and private sector organisations, we can exploit this opportunity sustainably to the mutual benefit of the over 500,000 small scale farmers in East Africa,” he said.

A decade ago, Kenya was a lead global producer of pyrethrum, earning about $20.8 million annually, which was about 70 percent of the trade. But over the past six years, production has declined mainly due to delayed payment to farmers. Industry experts say Kenya still has the potential to make $135 million annually if efforts are made to revive the sector.

The World Bank and PTA Bank have shown interest in partnering with Orion in developing the region’s pyrethrum industry.
The Kenya government is offering a 10-year tax free holiday for the project. The target market includes Uganda, Tanzania, Rwanda and Burundi.

Mr Maina said the aim of the project is to produce environmentally friendly products for agriculture and household use.
“Orion wants to incorporate a value chain by creating linkages with farmers, government and the market as well as create sustainable business using our Green Earth environmental care module,” he said.

Green Earth is an association that promotes better land- use management and environmental management as part of efforts to mitigate the effects of climate change.

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