The price of pyrethrum extract, the main product obtained from processing pyrethrum flowers, jumped 38.8 percent last year to an all-time high, due to the weak shilling.
Data from the Agriculture and Food Authority shows that the average price per kilogram of the extract was Sh37,500 in 2023, up from Sh27,000 the previous year.
This is the third consecutive increase in the price of the product and the highest ever.
The government agency attributed the price hike to the rapid decline in the value of the Kenyan shilling against the US dollar during the period.
About 98 percent of Kenyan pyrethrum extract is exported, while only 2 percent is used locally to make pyrethrum-based products.
Europe is the main buyer of Kenyan pyrethrum extract. Belgium bought 42% of exports, followed by Spain (27%) and Italy (15%). Other major buyers include South Korea (six%), Mexico (five%) and the United States (two%).
Pyrethrum extract is mainly used in the manufacture of insecticides.
The sector nearly collapsed in the 1990s, largely due to mismanagement by the Kenya Pyrethrum Board, which failed to pay farmers on time.
Many farmers have ditched the crop in favor of more profitable crops, even as prices have fallen with the advent of synthetic pesticides.
However, pyrethrum cultivation saw a strong comeback last year, with harvested flower extract volumes the highest since 2004.
The increase in production was driven by more farmers returning to planting the crop, more than doubling the planted area to 9,362 acres in 2023, compared to just 4,000 acres in 2022.
“The increase can be attributed to the purchase and distribution of agricultural materials to farmers, and the AFA Miraa Pyrethrum and Other Industrial Crops Directorate has also built the capacity of extension staff in the province to improve service delivery to farmers,” the Afghan Farmers Association said.
Nakuru County remains the largest producer of pyrethrum in Kenya, contributing about half of the total pyrethrum production in 2023. The county produced 772,035 kg of pyrethrum in 2023, up from 454,430 kg the previous year.
Other major producers were Bomet (319,001 kg), Nyandarua (272,055 kg), West Pokot (113,050 kg) and Kericho (88,398 kg).
Despite improved production, the government wants to reduce the industry’s dependence on the export market by increasing domestic demand for pyrethrum products.
“Moreover, there is a steady demand for natural pesticides in both local and international markets, making them a valuable asset to Kenya’s export industry,” the Kenya Pesticide Association added.
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