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The Manufacture and Importation of Pesticides, Other Agrochemical Products and Seeds in Kenya 2022

Gary Phillips | Kenya | 22 November 2022

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Report Coverage

This report on the manufacture and importation of pesticides, other agrochemicals and seeds in Kenya provides comprehensive information on the importation, blending processing and manufacturing of these products and the state of agriculture on which they depend. There is information on the state and size of the sector, trade, rates of use, key issues, notable local and international players, corporate actions, regulations and other developments. There are profiles of 23 seed pesticide and agrochemical companies including state-owned Kenya Seed Company and the Agricultural Development Corporation, international players such as Bayer, Syngenta East Africa and BASF East Africa, and private companies including Kenya Highland Seed and Fertiplant East Africa.

Introduction

• The Kenya pesticides and other agrochemicals industry is dominated by imports of international brands.
• There is a growing local biopesticide industry but it is relatively small.
• The certified seed industry is led by state-owned enterprises.
• The growth of the industry depends on the growth of agriculture.
• Agriculture is the country’s biggest sectoral contributor to GDP and provides livelihoods for three-quarters of the population, but most are subsistence farmers, meaning there is only a small market of intensive, commercial farmers available to suppliers.
• Certified seed suppliers are thought to only supply 22% of farmers in Kenya, with the rest trading unimproved seed informally.
• The pandemic, desert locust infestation and rapidly rising fertiliser prices put pressure on the market.
• Despite these pressures, the agrochemicals and seed industries are experiencing growth and attracting investment through Kenya’s important role as a regional hub.
• The strong growth of the horticultural industry has caused more demand for insecticides and fungicides.

Strengths

• A developing biopesticides production industry which is attracting international investment and building export markets.
• An established agrochemicals import industry with local reformulating, blending and distribution capacities.
• Domestic seed breeding, production and processing capabilities.
• Kenya’s position as a regional production and administration hub from which to access East African markets.
• The presence of global companies with R&D capacity.

Weaknesses

• A low percentage of farmers in Kenya are able to afford agricultural inputs causing the market for agrochemicals and certified seeds to be small.
• Concentration of market share in major certified seeds markets limits opportunities.
• Lack of capacity in regulatory authorities to enforce regulations, maintain standards and ensure safe practice.
• Many pesticides in use present health and environmental risks.

Opportunities

• Global and domestic shifts towards biopesticides as a sustainable, safe and environmentally-friendly pest control solution.
• Government prioritises support to the agricultural sector that can stimulate demand for agricultural inputs.
• Kenya experiences high economic growth rates.

Threats

• European Union trade restrictions on Kenyan exports containing pesticide residues.
• Reducing small farmer buying power after three years of economic shocks from the, the desert locust infestation and the Russia-Ukraine war.
• The review of registered synthetic pesticide products by the Kenyan government that may lead to the banning of pesticides that are important sellers for local agrochemical companies.

Outlook

• The outlook is affected by a recovery in the agricultural economy.
• The pandemic, desert locust infestation and war in Ukraine disrupted supply chains, raised prices and weakened the ability of small farmers to enter commercial farming and become customers of agrochemical and seed companies.
• The highly indebted Kenyan government has little ability to support farmers and stimulate demand for agricultural inputs.
• The government’s review of registered pesticides to possibly ban hazardous active ingredients is a concern.
• Economic and agricultural growth remains high, and Kenya is an important exporter of a number of agricultural commodities.
• The recent rapid growth in horticultural production for exports is contributing towards a positive outlook.

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The Manufacture and Importation of Pesticides, Other Agrochemical Products and Seeds in Kenya
The Manufacture and Importation of Pesticides, Other Agrochemical Products and Seeds in Kenya 2022

Full Report

R 9 500.00(ZAR) estimated $514.98 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 360.49 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 2
3. DESCRIPTION OF THE INDUSTRY 9
3.1. Industry Value Chain 11
3.2. Geographic Position 13
3.3. Size of the Industry 14
4. LOCAL 18
4.1. State of the Industry 18
4.2. Key Trends 22
4.3. Key Issues 23
4.4. Notable Players 25
4.5. Trade 30
4.6. Corporate Actions 45
4.7. Regulations 45
5. AFRICA 46
6. INTERNATIONAL 56
7. INFLUENCING FACTORS 61
7.1. Unforeseen Events 61
7.2. Economic Environment 62
7.3. Labour 63
7.4. Environmental and Health Issues 65
7.5. Technology, R&D and Innovation 66
7.6. Government Support 68
7.7. Input Costs 68
8. COMPETITIVE ENVIRONMENT 69
8.1. Competition 69
8.2. Ownership Structure of the Industry 71
8.3. Barriers to Entry 71
9. SWOT ANALYSIS 71
10. OUTLOOK 72
11. INDUSTRY ASSOCIATIONS 73
12. REFERENCES 73
12.1. Publications 73
12.2. Websites 74
APPENDIX 1 - Summary of Notable Players 76
Seed Companies 76
Pesticide and Agro-Chemical Companies 77
COMPANY PROFILES – SEED COMPANIES 79
Agri-Seed Co Ltd 79
Agricultural Development Corporation 81
East African Seed Company Ltd 83
Greenlife Crop Protection Africa Ltd 85
Kenya Highland Seed Company Ltd 87
Kenya Seed Company Ltd 89
Syngenta East Africa Ltd 92
Western Seed Company Ltd 94
COMPANY PROFILES – PESTICIDE AND AGRO-CHEMICAL COMPANIES 95
Arysta LifeScience (Kenya) Ltd 95
BASF East Africa Ltd 97
Bayer East Africa Ltd 98
Dudutech Integrated Pest Management Ltd 100
East African Seed Company Ltd 102
Fertiplant East Africa Ltd 104
Greenlife Crop Protection Africa Ltd 105
Juanco SPS Ltd 107
KAPI Ltd 108
KEL Chemicals Ltd 109
Kenya Biologics Ltd 110
Osho Chemical Industries Ltd 112
Real IPM Co (Kenya) Ltd (The) 114
Syngenta East Africa Ltd 116
Twiga Chemical Industries Ltd 118