Pyrethrum farmers to earn less as Kenyan shilling strengthens

Pyrethrum farmers in Nakuru are facing a new challenge as prices for their crops have recently been reduced by Kentegra, an American-based company.

Growers of this daisy-like flower are seen struggling and contemplating a return to familiar crops like maize and potatoes as they reassess the profitability of pyrethrum cultivation.

Mtaa Wangu got a hint of this plight from a message to farmers from Kentegra that stated the price drop from Sh. 290 to Sh. 240 a kilo for the py content range of 1.46 to 1.55 percent, effective 24th June 2024.

We reached out to Kentegra to find out what some of the reasons were for the dropping prices.

In a letter- shared by officials of the company to Mtaa Wangu- dated 21st June 2024, the company CEO Brian McKenzie notes that the price adjustment is due to the marketing price pressure of their final product, due to the unprecedented appreciation of the shilling.

“It is with careful consideration that Kentegra is revising its dried pyrethrum flower pricing, owing to the unprecedented appreciation of the Kenyan shilling,” the statement reads.

According to the company statement, the firm has supported farmers by increasing prices three times in 2023 from Sh. 240 to Sh. 290. These adjustments were made to address the high cost of living and to compensate for the weakening shilling, helping farmers cope with economic pressures.

“However, the recent strengthening of the Kenyan shilling has made our current price list non-competitive in the international market. Kentegra will be revising the minimum guarantee buying price of the pyrethrum flowers from Sh. 290/kg to Sh. 240/kg. This was a difficult but critical decision to ensure the continued operation and sustainability of the business and its partners,” says McKenzie.

He continues, “Our contracted farmer partners still have the opportunity to earn more as we will retain the quality-based pricelist to reward farmers who produce flowers with a high pyrethrin content.”

The natural insecticide was the third biggest exporter for the country in the 1990s but saw a decline over the years.

Now, five years into the county’s revival program, a section of farmers are still grappling with producing flowers with a high py content as they gear towards fully reviving the sector.