The price of pyrethrum extract, the main product obtained from the processing of pyrethrum flowers, jumped by 38.8 percent last year to hit the highest level on available record, due to a weak shilling.
Data from the Agriculture and Food Authority (AFA) shows that the price of a kilogramme (kg) of the extract averaged Sh37,500 in 2023, up from Sh27,000 in the previous year.
This is the third consecutive increase in the product price and the highest on record.
The State agency attributed the higher price to the rapid depreciation of the Kenyan shilling against the US dollar during the period.
About 98 percent of Kenya’s pyrethrum extract is exported, while only to percent is used locally to make pyrethrum-based products.
Europe is the main buyer of Kenya’s pyrethrum extract. Belgium bought 42 percent of the exports, followed by Spain (27 percent) and Italy (15 percent). Other top buyers are South Korea (six percent), Mexico (five percent), and the US (two percent).
Pyrethrum extract is mainly used in the manufacture of insecticides.
The sector nearly collapsed in the 1990s, largely due to mismanagement by the Pyrethrum Board of Kenya, which failed to pay farmers’ dues on time.
Many farmers uprooted the crop in favour of more lucrative crops, even as prices plummeted with the emergence of synthetic insecticides.
However, pyrethrum farming made a strong comeback last year, with the extract quantities from harvested flowers being the highest since 2004.
The higher production was driven by more farmers returning to the crop, which saw area under cultivation more than double to 9,362 acres in 2023, compared to just 4,000 acres in 2022.
“The increase could be attributed to the purchase and distribution of planting materials to growers and the (AFA Miraa Pyrethrum and Other Industrial Crops) Directorate carried out capacity building of county extension officers in order to improve service delivery to growers,” said AFA.
Nakuru remains the largest producer of pyrethrum in Kenya, contributing nearly half of the total output of pyrethrum flowers in 2023. The county produced 772,035kg of pyrethrum flowers in 2023, up from 454,430kg the previous year.
Other top producers were Bomet (319,001kg), Nyandarua (272,055kg), West Pokot (113,050kg) and Kericho (88,398kg).
Despite the improved output, the government wants to reduce the industry’s reliance on the export market by growing local demand for pyrethrum products.
“Furthermore, there is consistent demand for natural pesticides in the local and international markets, positioning it as a valuable asset for Kenya’s export industry,” said AFA.
