“Fresh funding from the National Government and county - TopicsExpress



          

“Fresh funding from the National Government and county governments of Kshs 760 million need to revive ailing pyrethrum sector”-Task Force Report. Task Force Presents Its Findings To Governor Kinuthia Mbugua By Elijah Kinyanjui July 25 2013 Pyrethrum Board of Kenya Managing Director Dr Isaac Mulagoli should be removed and replaced by a crop revival team to resuscitate the dying pyrethrum industry in Kenya, a task force has recommended. After completing two months of fact finding, a 21-man team task force headed by the Chairman of the Pyrethrum Growers Association Samuel Kihiu and James Kuria which recommended that a board comprising farmers’ representatives should be part of the revival team. The team also proposed that a private company called Pyrethrum Board of Kenya (PBK) Ltd be established and comprise a Board of Trustees made up of five county Governors from pyrethrum growing areas, a Board of Directors and a management team. “Private Investors should also be allowed to participate in revival initiatives of pyrethrum in areas would have immediate impact in the revival especially seed and clonal multiplication in nurseries and supply and distribution of planting materials to farmers”, the team recommended. The team coded PYRETHRUM REVIVAL TASK FORCE, 2013 was set up by Governor Mbugua on July 25 2013 to review causes of pyrethrum decline in Kenya and suggested action plan to revive the subsector in the country. The Kihiu and James Kuria was setup by the Governor of Nakuru Country with express mandate of Governors in Kenya’s 18 pyrethrum growing counties to spearhead revival of the sub-sector. Task force members were 1. H.E Joseph Ruto Deputy Governor, Nakuru County 2. Amos Gathecha County Commissioner, Nakuru County 3. Samuel Kuria Kihiu Team Leader, Sub Committee 1 4. James N. Kuria Team Leader, Sub Committee 2 5. Leonard P. Ochieng, HSC County Director Agriculture 6. Patrick O. MakAnyengo County Commissioner for Cooperatives 7. Joseph Mukiri Member 8. John Koske Member 9. Rev. Richard Chelule Member 10. Joseph Ng’eno Member 11. Justus Monda Member 12. Muigai Ngugi MCA Molo Ward 13. Njuguna Gichamu MCA Nyota Ward 14. Robinson M. Kuria Member 15. Wilson Mwangi Member 16. Njuguna Kamau Member 17. Jesse Ngarachu Member 18. Samuel Maranga Matonda Secretariat 19. Geoffrey Kioko Secretariat 20. John Macharia Secretariat 21. Eunice Mwangi Secretariat Other main proposals of the team were: -Outsource of legal issue to a law farm to handle outstanding court cases/arbitration and sort out assets ownership. -The new Act (Ref. AFFA) envisages a liberalized market but the farmer needs to be protected against exploitive external investor. Consideration should be to license local investors to complement the new commercial company PBK ltd in reviving pyrethrum sector in the country. Local initiatives already exist through KAPI and HIGHCHEM. -Private Investors Involvement “It is highly recommended that PBK enter into partnership with private investors preferably in the following areas of research and development and product value addition in partnerships that could take the following format: 1. Direct acquisition of equity in PBK limited. This should however be limited to Government, County Governments and Local Investors. 2. Acquisition of Equity in companies that PBK Ltd will set up to mass produce value added finished products. 11.3. Crop Production i. Scrutinize and settle all outstanding farmers’ arrears. ii. Maintain monthly payments for new deliveries iii. Revive and equip tissue culture laboratories iv. Utilize women and youth groups in projects for planting material propagation in liaison with county governments for employment creation v. Mobilize and engage farmers to expand their crop vi. Purchase planting materials (seedlings and clonal material) and free issue to farmers on credit vii. Promote farm to farm crop transfers viii. Revive all PBK nurseries and seed fields, and expand PBK nucleus farms. PBK should outsource their farms to out growers. 11.4. Processing • Enhance processing skills by hiring ex employees on short-term contracts. • Install basic process control equipment. • Improve extraction efficiency from the current 50% to 80%, which equates to an extra earning of Kshs 187,000 per ton compared to farmers’ payment of Kshs 150,000 per ton. This process efficiency can be achieved by either i) Mechanical Plant overhaul or ii) Commissioning of the new plant and create a reduction of the plant capacity to handle low production or iii) Procurement/installation of a 10MT per day new extraction equipment. • Carry out plant wide modernization. This has to be done over a period of time • All factory workers have to be in proper Personal Protection Equipment at all times. 11.5. Finance • For immediate revival of the pyrethrum sub-sector, the National Government should bail out the industry by taking over total liabilities • The Anti Corruption Commission to carry out forensic audit and apportion responsibility to individuals implicated and take appropriate action to deter recurrence • Restructure PBK books of finance to reflect the true financial position.
Posted on: Thu, 25 Jul 2013 13:46:27 +0000

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