Cabinet to Deliberate Leasing of PPCK, CS Kagwe Tells Senate
Business Updated: 19 November 2025 14:53 EAT
All systems are go as the Cabinet prepares to deliberate on the leasing of the Pyrethrum Processing Company of Kenya (PPCK), Agriculture Cabinet Secretary Sen. Mutahi Kagwe told the Senate Plenary on Tuesday, signalling a decisive shift toward private-sector–driven revitalisation of the once-thriving sub-sector.
Kagwe said the leasing proposal—already captured in a Cabinet Memorandum he has submitted—was initiated with the full backing of PPCK employees who agree that private investment is the only viable path to restoring efficiency, competitiveness, and profitability.
The CS revealed that PPCK’s current financial performance is unsustainable, with the organisation generating only KSh 35 million annually, its best being KSh 60 million.
He noted that the agency not only lacks adequate resources to run its operations but has also received no allocation for research, a critical component for reviving the pyrethrum value chain.
“There is simply not enough money to sustain the organisation itself,” Kagwe told Senators, emphasizing that the current structure cannot deliver the sector’s revival.
Kagwe further disclosed that farmers are owed KSh 10 million for deliveries made in August, September, and October, funds that the Government has committed to settle immediately.
However, he underscored that PPCK’s main obstacle is a staggering debt portfolio of KSh 3.5 billion, owed to suppliers and in staff pension arrears. He confirmed that although there had been a proposal to sell some assets to offset part of the debt, the process stalled due to delayed valuation reports, and consequently, no assets have been sold to date.
With the leasing model now on the table, Kagwe explained that the Government must first clean up PPCK’s balance sheet, undertake a fresh valuation of its assets, and ensure due diligence before a private operator can take over. He stressed that the Cabinet’s approval will unlock a long-term, sustainable structure that mirrors successful models in competitive private industries.
During his broader submission to the Senate, the CS detailed the Ministry’s ongoing interventions across the pyrethrum value chain, including distribution of clean planting materials, expansion of extension services, and alignment of production standards with international regulatory requirements to secure export markets.
Kagwe reaffirmed that while PPCK’s challenges are significant, the Government remains committed to protecting farmers, stabilizing payments, and positioning the pyrethrum sector for global competitiveness under a modernized, private-sector–driven policy framework.
Tags: Mutahi Kagwe Ministry Of Agriculture Senate Commitee
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