The Ministry of Agriculture plans to revive the Pyrethrum Processing Company of Kenya (PCCK) amid claims of insolvency and sabotage by a section of managers.
This came as Agriculture Principal Secretary Paul Ronoh and the company’s chair Granton Samboja, exposed wrangles in leadership.
Samboja claimed that two weeks ago, the company lost a buyer, willing to inject Sh50 million.
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He further alleged that during the same period, someone sabotaged the company’s systems and information server.
“As a board, we are saddened that some top officials in this company are busy trying to finish each other and stop sales, instead of working,” lamented Samboja.
The chairman warned that employees found culpable of sabotaging the company would be sent home.
Samboja, who was appointed chair in May, said that for the last four months, he had observed that a section of employees were idling instead of working.
“I have visited the company several times, and I see staff basking in the sun from 8 am to 1 pm, doing nothing. If you have no business here, you will be sent home,” he said.
He insisted that revival of the company would focus on farmers.
PS Ronoh said that the government was working to clear salary arrears, but some staff were allegedly sabotaging the company.
“We are nowhere now. You are sitting on a goldmine and you have to do your part, because as the government, we will revive this sector,” he said.
Dr Ronoh admitted that the company was facing an extraordinary problem and reviving it would need tough decisions to be made.
“As the government, we will remain keen and come in to bring order, when need be,” he said.
The PS expressed shock at how investors pulled out due to sabotage.
Auditor General Nancy Gathungu, in the latest report, revealed that the company is insolvent.
Gathungu, revealed that the firm’s sustainability is dependent on support from the national government and its creditors.
The Auditor General noted that the company’s financial position indicated a current liabilities balance of Sh1,612,877,000, which exceeds the current assets balance of Sh666,437,000, resulting in a negative working capital of Sh946,440,000.
The company’s statement of profit or loss and other comprehensive income as per the report reflected a deficit of Sh83,582,000, resulting in an increase in accumulated general reserve deficit from Sh523,645,000 as at June 30, 2023 to Sh671,593,000 as at June 30, 2024.
“The company is, therefore, technically insolvent and its continued sustainability of services is dependent upon support from the national government and its creditors. In the circumstances, the corporation’s ability to continue to sustain its services could not be confirmed,” stated the Auditor General.
The report further revealed that an extraction plant purchased and installed in 2006 at a cost of Sh305, 872,000 has never been commissioned.
PPCK management in the report said it was planning to sell the plant since it had no economic value.
The company has a processing capacity of 25 metric tonnes of flowers per day, translating to 9,125 metric tonnes per year.
However, during the 2023/2024 Financial Year, the company made only three runs, processing a total of 411 metric tons, which is suboptimal compared to its processing capacity.
PCCK has to accumulate flowers for an average of three months before they are sufficient for a run, due to the limited flower reception and a lack of funding to purchase and produce flowers.
“This has in turn led to high production costs due to diminishing pyrethrin content of the stored flowers, idle time of the machine, operations inefficiencies due to processing of low quantities, and underutilization of the factory staff,” read the audit report.
Recently, Njoroge Wachira was named the company’s new acting Chief Executive Officer. She will take over from Carolyne Imbwaga on October 1, 2025.
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The Ministry of Agriculture plans to revive the Pyrethrum Processing Company of Kenya (PCCK) amid claims of insolvency and sabotage by a section of managers.
This came as Agriculture Principal Secretary Paul Ronoh and the company’s chair Granton Samboja, exposed wrangles in leadership.
Samboja claimed that two weeks ago, the company lost a buyer, willing to inject Sh50 million.
Follow The Standard
channel
on WhatsApp
He further alleged that during the same period, someone sabotaged the company’s systems and information server.
“As a board, we are saddened that some top officials in this company are busy trying to finish each other and stop sales, instead of working,” lamented Samboja.
The chairman warned that employees found culpable of sabotaging the company would be sent home.
Samboja, who was appointed chair in May, said that for the last four months, he had observed that a section of employees were
idling instead of working.
“I have visited the company several times, and I see staff basking in the sun from 8 am to 1 pm, doing nothing. If you have no business here, you will be sent home,” he said.
He insisted that revival of the company would focus on farmers.
PS Ronoh said that the government was working to clear salary arrears, but some staff were allegedly sabotaging the company.
“We are nowhere now. You are sitting on a goldmine and you have to do your part, because as the government, we will revive this sector,” he said.
Dr Ronoh admitted that the company was facing an extraordinary problem and reviving it would need tough decisions to be made.
“As the government, we will remain keen and come in to bring order, when need be,” he said.
The PS expressed shock at how investors pulled out due to sabotage.
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Auditor General Nancy Gathungu, in the latest report, revealed that the company is insolvent.
Gathungu, revealed that the firm’s sustainability is dependent on support from the national government and its creditors.
The Auditor General noted that the company’s financial position indicated a current liabilities balance of Sh1,612,877,000, which exceeds the current assets balance of Sh666,437,000, resulting in a negative working capital of Sh946,440,000.
The company’s statement of profit or loss and other comprehensive income as per the report reflected a deficit of Sh83,582,000, resulting in an increase in accumulated general reserve deficit from Sh523,645,000 as at June 30, 2023 to Sh671,593,000 as at June 30, 2024.
“The company is, therefore, technically insolvent and its continued sustainability of services is dependent upon support from the national government and its creditors. In the circumstances, the corporation’s ability to continue to sustain its services could not be confirmed,” stated the Auditor General.
The report further revealed that an extraction plant purchased and installed in 2006 at a cost of Sh305, 872,000 has never been commissioned.
PPCK management in the report said it was planning to sell the plant since it had no economic value.
The company has a processing capacity of 25 metric tonnes of flowers per day, translating to 9,125 metric tonnes per year.
However, during the 2023/2024 Financial Year, the company made only three runs, processing a total of 411 metric tons, which is suboptimal compared to its processing capacity.
PCCK has to accumulate flowers for an average of three months before they are
sufficient for a run
, due to the limited flower reception and a lack of funding to purchase and produce flowers.
“This has in turn led to high production costs due to diminishing pyrethrin content of the stored flowers, idle time of the machine, operations inefficiencies due to processing of low quantities, and underutilization of the factory staff,” read the audit report.
Recently, Njoroge Wachira was named the company’s new acting Chief Executive Officer. She will take over from Carolyne Imbwaga on October 1, 2025.
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By Julius Chepkwony and Daniel Chege