This is a guide on How to apply for a Pyrethrum Processor License in Kenya. Kenya is targeting a six-fold increase in pyrethrum production this year following the licensing of the first three private processors.
Head of the Pyrethrum Directorate Andrew Osodo said the investors will add over 2,000 tonnes of pyrethrum flowers to the current 300 tonnes. The directorate has licensed Kentegra and Africhem Botanical, which have already started building factories and developing pyrethrum nurseries.
The third firm, Highchem East Africa, is in the process of obtaining a licence.
Highchem is one of the four companies that had applied for a licence to process pyrethrum after the government invited private players to inject new capital to revive the ailing sector.
“Our target is to increase the volume to over 2,000 tonnes of flowers by the end of this year, with the licensing of three players we are going to reach these volumes,” said Mr Osodo.
The regulator said the government was putting up demonstration farms where farmers can buy certified seeds.
This is the government’s latest attempt to revive the industry that was producing 20,000 tonnes annually in the early 1970s. Kenya was then the leading producer of the crop in accounting for 70 per cent globally.
Most of the pyrethrum is meant for export with the local market consuming less than two per cent.
Recent statistics from the directorate indicate the volumes of flowers supplied to the Nakuru-based state processor dropped from 390 tonnes in 2014 to 290 tonnes last year with projections for 2017 expected to dip further.
Pyrethrum Processor License application Procedure
- “processor” means a person licensed under this Act to extract pyrethrins from pyrethrum or pyrethrum products;
- This application allows Processor’s with a valid Certificate of registration by the Authority to commence Pyrethrum processing operations in Kenya.
- Application for a Pyrethrum Processor License is done in person by visiting the Pyrethrum and other Industrial Crops Directorate Head Offices or their field offices in the County governments.
- Here you will be issued with an Application for Processor License– Form A9 fill and submit.
- This form can also be downloaded online by visiting the Agriculture and Food Authority- Pyrethrum and other Industrial Crops Directorate Web page
- Fill in the required information and attach the required documents to the application before submitting. A list of the required documents can be found in the “Required Documents” Section of this page.
- Submit the completed application form and pay the required application fee of Ksh. 1000 and submit the receipt as proof of payment.
- This is followed by an inspection of applicants by the Pyrethrum and other Industrial Crops Officers
- Recommendations based in findings of the investigation will be made to the Pyrethrum and other Industrial Crops directorate’s Board Headquarters for final authority’s approval.
- At this point the applicant is notified if he/she has been successfully licensed or which rectifications have to be made for them to be licensed as a pyrethrum processor.
- Upon a successful approval the Pyrethrum processor license applicant is notified and he/she will be required to pay a license fee of Ksh. 250,000 to the board and submit the receipt as proof of payment.
- Once the licensing process is done the Pyrethrum Processer license is issued to the applicant
Required Documents for the application of Pyrethrum Processor License
An applicant for a license as a processor shall have following—
- Processor’s Certificate of registration by the Authority.
- a certified copy of certificate of incorporation i.e. a certified copy of Memorandum and Articles of Association or valid certificate of business registration;
- a clearance letter from the County Government where the processing factory shall be located;
- a minimum capacity to process one hundred tonnes of dry pyrethrum flowers annually;
- clearance letter and certification from Pest Control Products Board;
- the names of company directors or partners as the case may be;
- copies of—
- individual national identification documents or passports;
- personal identification number certificates; and
- the names and addresses of two business referees;
- tax compliance certificates from Kenya Revenue Authority for the company and its directors.
- (i) evidence of compliance with statutory requirements including—
- Pest Control Products Board
- National Environment Management Authority; and
- County government.
- a certified copy of a safety & occupational health certificate;
- clearance letters from—
- the Credit Reference Bureau; and
- any other body as prescribed by the Authority from time to time.
- a certified copy of a comprehensive insurance cover from a reputable firm proportionate to the volume of pyrethrum product handled according to the insurance valuation.
- an affidavit by the applicant of their involvement by themselves, their servants, spouses, next of kin, holding companies, associated companies, or partnerships in the business of commercial dealers, management agents, warehousemen, or marketing agents;
- proof of engaging services of a pyrethrum registered grower or dealer by the Authority;
- a minimum of three hundred acres under pyrethrum or three hundred registered growers;
- an undertaking to furnish the Authority with stock returns each quarter; and
- paid up share capital of not less than five hundred thousand shillings
- any other requirements that may be prescribed by the Authority from time to time.
- The applicant shall also demonstrate physical infrastructure and technical capacity to process and deliver a product that meets the standards as stipulated by the authority.
- The processor shall submit signed contracts between them and growers within 60 days of being licensed.
Office Locations & Contacts
Pyrethrum & Other Industrial Crops Directorate
P.O. Box 37962-00100, NAIROBI
Customer Care Desk:
Website:Pyrethrum & Other Industrial Crops Directorate
Agriculture and Food Authority
Tea House; Naivasha Road, off Ngong Road
P.O Box 37962 – 00100, Nairobi
Cell Phone: +254-722200556/734600944
Wireless: +254 – 020 – 2536869/2536886
- Registered pyrethrum processors with the authority are eligible to make application for licensing.
Pyrethrum Processor License application Fees
- Application fee is Ksh 1,000
- Initial licensing fees is Kshs. 250, 000
- The license is valid for a period of one year.
- The license expires on the 30th June of every year.
Documents to Use
- The processing time is 30 days.
- Name of Applicant (entity)
- Postal and physical address
- Website and email address
- Location of land (Land Reference Number / County / Sub-county/ Ward)
- Name of local chief
- Proposed name of the company
- Processing capacity of tonnes per Month (Grinding/ Extraction/ Refining)
- License category ( Commercial / Private)
- Company Particulars
Need for the Document
- A Pyrethrum Processor Registration Certificate authorizes the holder to conduct the business as a pyrethrum processor in Kenya.
- No person can act as a pyrethrum processor unless he is the holder of a current registration certificate issued in respect thereof by the Board after consultation with the Director.
Information which might help
- A registered processor shall notify the Authority of all changes in its ownership and shareholding.
- In appointing principal officers and directors, registered processors shall satisfy themselves that eligible persons shall be suitable to serve as provided for in these Regulations.
- Every Registered Processor shall notify the Authority of the appointment of a principal officer or a director within thirty days of the making of such appointment.
- Where the Authority is not satisfied that the person so appointed is fit and proper to serve as such principal officer or director, it shall notify the processor who shall be required to replace such appointee.
- A registration certificate shall not be transferable.
- The Authority in consultation with the County Government may revoke the registration if it is proved that-
- the applicant made material misrepresentation or false declaration in the application;
- the document was otherwise obtained by corruption or fraud ;or
- a condition of the registration has, in the opinion of the Authority, been breached.
- A registered processor whose implementation plan lapses by one year without reasonable cause shall be deregistered.
- Any person who contravenes the provisions of this regulation commits an offence and upon conviction is liable to the penalty prescribed under section 37 of the Crops Act.
Others in relation to Pyrethrum Processor License
Terms and Conditions
- A minimum capacity to process one hundred tonnes of dry pyrethrum flowers annually;
- A processor shall maintain a certified copy of insurance policy covering all risks related to pyrethrum processing business
- Any other requirements that may be prescribed by the County Government from time to time.
- The processor shall submit signed contracts between them and growers within 60 days of being licensed
- A license for a new processing plant will only be issued to persons, or companies who have a minimum of a 1000 say thousand acres or more of pyrethrum flowers or flower production of 30 say thirty tons production per month.
- When licensing a new processor due consideration will be taken to ensure that processing over capacity is not created in a given local area or zone. In the case of a private investor, the Directorate shall arbitrate to decide how the growers are distributed between the existing and the new processor before issuing a license.
- The Directorate, in consultation with the Cabinet Secretary, may cancel, vary or suspend the license issued to any person if such person fails to comply with terms and conditions of the license.
- The processors shall submit their processing returns to the Directorate on bi-annual basis.