Attention has now shifted to the Cabinet after the Senate endorsed the government’s proposal to lease the Pyrethrum Processing Company of Kenya (PPCK) to a private operator. Agriculture Cabinet Secretary Mutahi Kagwe, appearing before the Senate, disclosed that the state corporation is no longer financially viable and requires urgent intervention to survive.
For nearly a decade, the government has sought a strategic investor to revive the once-thriving pyrethrum processor and boost production across the value chain. Kagwe said PPCK currently generates only KSh35 million annually—far below its operational needs—while struggling under heavy liabilities, including an outstanding KSh3.5 billion.
According to the Auditor-General’s report, the company’s current liabilities stand at KSh1.61 billion against current assets of KSh666 million, leaving it with a negative working capital of KSh946 million. In the same financial year, PPCK recorded a loss of approximately KSh83.58 million. Kagwe noted that the company’s negative working capital, persistent deficits, low plant utilisation and idle capital assets have undermined its sustainability.
The CS told Senators that the proposed leasing model has the backing of PPCK employees and is designed to inject private capital, modern technology, and improved management systems. Under the arrangement, a private operator would take over processing functions, pay farmers promptly, and upgrade outdated machinery to enhance efficiency and reduce costs.
With Senate approval secured, the final decision now rests with the Cabinet, whose green light would pave the way for privatization aimed at revitalising the pyrethrum sector, safeguarding farmers’ earnings, and protecting employees’ livelihoods.
