Pyrethrum Power Surge: Kentegra Biotechnology Secures $15 Million Financing for Blossoming Growth
Nairobi-based pyrethrum pioneer, Kentegra Biotechnology, is set to receive a significant boost with a financial injection of Ksh 2.1 billion (USD 15 million) from Finnfund, a Finnish development financier, and the United States Development Finance Corporation (DFC). This financing aims to expand Kentegra’s pyrethrum flower production and catalyze a revival in the pyrethrum sector.
Kentegra Biotechnology specializes in producing and supplying pyrethrin, extracted from dried pyrethrum flowers, to global manufacturers of insecticides and pesticides. The pyrethrum business in Kenya flourished during the 1990s but later faced a decline due to competition from more affordable synthetic pesticides.
The infusion of funds will empower Kentegra to enhance its capabilities in producing pale refined pyrethrum extract, facilitating working capital needs, and providing access to new international markets. This strategic investment, totaling Ksh 2.1 billion, will enable Kentegra to process pyrethrum flowers from around 90,000 small-scale farmers in Kenya, paving the way for sustainable growth and impact.
Johanna Raehalme, the head of Finnfund’s Nairobi office, expressed confidence in Kentegra, emphasizing its alignment with investor expectations in terms of commercial success, sustainability, and positive impact. Kentegra’s adept management and significant development impact contribute to its promising growth trajectory in a burgeoning market.
Research conducted in the sector reveals a surging demand for organic pesticides and environmentally conscious food production. Pyrethrin, a key ingredient sourced from pyrethrum, is widely used in the production of pesticides for agricultural and household use.
DFC’s backing will not only expand Kentegra’s production capacity for organic pesticides but also focus on growing its network of women farmers, reflecting a commitment to gender empowerment and fostering sustainable income streams. The partnership aims to provide women farmers with training in best practices and financial planning tools, further enhancing their livelihoods.
In line with its growth aspirations, Kentegra announced plans to establish a pyrethrum factory in Nakuru County, creating 600 direct jobs by year-end. This move is a significant step towards revitalizing the sector and reinforcing Kentegra’s role as a pivotal player in Kenya’s pyrethrum industry.
Kentegra’s success story aligns with the larger trend of privately owned firms gaining momentum in the pyrethrum sector following its liberalization seven years ago. The financing marks a pivotal moment in Kentegra’s journey, propelling it towards continued expansion, innovation, and sustainable impact.