Board picked to spearhead pyrethrum sector reforms

A new board has been appointed to spearhead reforms in the pyrethrum industry, at a time when farmers are abandoning the crop in favour of more lucrative agricultural activities.

It will be chaired by Mr Solomon Boit, a former permanent secretary, and comprises four farmers’ representatives, three from the Agriculture ministry and officials from the Finance and Cooperatives ministries.

Disillusioned farmers have been uprooting the crop due to failure by the Pyrethrum Board of Kenya (PBK) to pay for their produce promptly.

Growers are shifting to horticulture and dairy farming, which they consider more lucrative. This has reduced the acreage under pyrethrum from 1,800 acres to less than 500 acres with production projected to drop further still.

Acting MD
Now, restructuring of the pyrethrum sub sector has began with the launch of a new body charged with initiating the much desired reforms for the giant but sleeping industry.

On Wednesday, the Agriculture ministry installed a 13-member board to help restore the lost potential of the sector.

Its officials will include four representatives of farmers, three ministerial appointees as well as representatives drawn from the line ministries of Finance, Co-operatives and the inspectorate of state corporations.

“The board must address crop development and improvement as well as marketing and product development,” said Mr William Ruto, Agriculture minister.

On Wednesday, the minister also failed to appoint a substantive MD, but appointed Dr Isaac Mulagoli in an acting capacity.

New team
It is expected that the new team will also spearhead the conversion of the board into a limited company by shares to be owned largely by growers and to initiate the process of raising capital through transaction advisors and a strategic partner.

The pyrethrum sector has faced numerous problems in the last five years that have driven it to the brink of collapse. Despite an earlier move by the government to pay a Sh863 million of debt owed to farmers accumulated since 2003, the parastatal still owes growers millions of shillings.

The new board is expected to demarcate the key growing areas, launch a strategic plan to guide the industry as well as recommend the right staffing levels.

Interventions are expected to enable Kenya a reclaim its glory as the world’s leading pyrethrum producer.