In efforts to revive the pyrethrum industry, the government plans to distribute 60 million seedlings to farmers in 19 counties starting next year.
This is after the government established market in United States and Asia.
The Cabinet Secretary for Agriculture Mwangi Kiunjuri said over four investors have approached the ministry seeking to buy dried pyrethrum flowers.
“We are not ready to let such an opportunity fade away and it is in this regard that we have decided to provide farmers with certified and subsidised seedlings by the start of the longs rains next year,” he told the Sunday Nation.
For a farmer to put an acre under pyrethrum, he said, one requires more than Sh40 million to buy seedlings. This is prohibitive and many cannot afford, said the CS, adding that it is because of this reason that they have decided to distribute the certified and subsidised seedlings.
The CS said buyers are willing to purchase a kilogram of dried pyrethrum flowers from Sh200-Sh250 but Kenya is pushing for more.
Among the 19 counties that the ministry has already tested their soils and found them fit for growing of the crop are Nakuru, Kiambu, Nyandarua, Nyeri, Laikipia, Meru, Embu, Baringo, Elgeyo Marakwet, West Pokot, Trans Nzoia, Bungoma (Mt Elgon), Uasin Gishu, Nandi, Kericho, Bomet, Narok, Nyamira and Kisii.
In the next one year and in collaboration with the county governments, he said they want to make sure 15,000-20,000 acres are under pyrethrum.
“I am encouraging women and youth to join groups and acquire clonal splits from the ministry and grow them to earn a living and help in seeds multiplication,” he stated.
Kenya has the potential to produce and process 20,000 metric tonnes (MT) of pyrethrum flowers to earn Sh7.5 billion for farmers per year and Sh5.8 billion in foreign exchange from refined extract alone.
With direct or indirect linkage to the crop that best grows at an altitude of 1,700 to 2,900 metres above sea level, it can provide a livelihood to three million people.
In the 90s, Kenya was controlling over 90 percent of the world market compared to the current share of only 2 percent.
Over time, production declined and Kenya lost the market to Australia which took over with the island state of Tasmania later taking over the growing and processing in early 2000.
By 2010, Tasmania controlled 65 percent of the world’s pyrethrum production. Other countries producing the crop are China, Rwanda and Tanzania, which now control world market.
Production of pyrethrum in the country declined from a high of 18,000 metric tonnes in 1992 to the current national production of about 500 metric tonnes.
The current acreage under the crop is about 3,000 acres and the number of growers has also drastically reduced to 8,000 from 40,000.
In 1990s, pyrethrum was a major foreign earner that brought in over Sh2.1 billion at its peak in 1996 compared to current Sh120 million. The crop also saw over 200,000 small-scale growers benefit directly in 1980s-1990s.
According to a pyrethrum report from the Ministry of Agriculture, the crop started declining in 2004-2005.
The main reason for the drop was inconsistent payment to growers, unmatched market demand and production and unfavourable industry legal framework.
Pyrethrum is a crop that has been grown in Kenya since 1928 and produces pyrethrins used as natural insecticides and pesticide for agricultural, pharmaceutical and domestic use.
However, Mr Kiunjuri said they have conducted several reforms in the sector which will now see the industry bounce back to its lost glory.
After enactment of the Crops Act 2013, and in line with the agriculture sector reforms, he said the industry was reorganised through separation of the regulatory and commercial functions of the former Pyrethrum Board of Kenya (PBK).
In the arrangement, he went on, the regulatory functions have been ceded to the Agriculture and Food Authority (AFA) through the miraa, pyrethrum and other industrial crops directorate whose functions are to develop and promote the Kenya pyrethrum industry.
Mr Kiunjuri noted that commercial and processing functions are being played by Pyrethrum Processing Company of Kenya.
The role of the company is collection, payment and processing of growers’ dry flowers, marketing pyrethrum and pyrethrum products and provision of technical and scientific services relating to the crop.
Currently, the PBK processing plant in Nakuru operates at 10 percent of its capacity due to lack of flowers. Nevertheless, the company has one of the leading refining plants globally and is able to produce high quality extracts that are preferred by the market.
However, the Agriculture minister affirmed the industry is currently recovering and has attracted four processing companies in the country.
He stated, “Currently, six new companies have applied for licensing as processor and are at various stages of licensing.”
They include Pyrethrum Processing Company of Kenya (capacity of 25MT per day operating at 50MT per day. This firm is, however, yet to be commissioned.
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.