AGROCHEMICALS ASSOCIATION OF KENYA

AGROCHEMICALS ASSOCIATION OF KENYA


2018ANNUAL REPORT

AGROCHEMICALS ASSOCIATION OF KENYA (AAK)

CropLifeKENYA


The industry acknowledges that

creating a favourable operating environment

is key to achieving sustainability for the

industry

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Contents

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Message From the Chief Executive Officer 201 Institutional Development 41.1 AAK’s 59th Annual General Meeting 41.2 Board Induction/Corporate Governance Training 41.3 Membership Development 51.4 Members’ Networking Forum 51.5 Team Building for AAK Staff 61.6 Members’ Satisfaction Survey 6

02 Regulatory, Policy and Standards 72.1 Breakfast Meeting to Strategize on Sustainable Management of Empty Pesticides Containers (EPCs) 72.2 AAK Members Get Prepared For Global Harmonized System (GHS) of Classification and Labelling of

Chemicals Implementation 7

03 Product Stewardship Activities 83.1 Responsible Use Trainings 83.2 Spray Service Provision (SSP) achieves another Milestone in Kenya 9

04 Anti-Counterfeit Activities 134.1 The launch of Inter-Agency Anti-Illicit Trade Working Group 134.2 AAK Collaborates with ACA in Fight against Counterfeits at the Namanga Border 134.3 Destruction of Counterfeit Goods at EPZA 144.4 Stakeholders Consultative Forum on the proposed amendments of the Anti-Counterfeit Act, 2008 towards

improving service delivery of the Big 4 Agenda 144.5 Strategy meeting at Eka Hotel 144.6 Agro-dealer Outreach Activities a Notch Higher in 2018 154.7 Participation in the Trade Week and Exposition 2018 164.8 AAK Participation in the ACA’s North Rift Consumer Outreach Activities 164.9 Anti-Counterfeit Awareness Campaign 16

05 Partnership Building 175.1 Public-Private Dialogue 17

APPENDIX 181. Members Survey Report 182. Import Analysis 2015-2018 203. AAK Activities 234. Statement of Comprehensive Income 255. AAK Membership 2018 26


The year 2018 has clearly been an eventful one for the Agrochemicals Association of Kenya (AAK)/CropLife Kenya (CLK). The second half of the year saw the association very busy with different activities that ensured

that members’ needs were catered for.

The industry acknowledges that creating a favourable operating environment is key to achieving sustainability for the industry. The industry has realized the importance of working closely with the government to address issues affecting the industry as this ensures that solutions facing the industry are tackled more effectively and efficiently. In addition, the industry notes the importance of being proactive in identifying potential issues that can affect the industry rather than being reactionary towards the issues.

Of great concern in 2018 was the introduction of 16% VAT on agrochemical products, under the Tax Laws (Amendment) Act No. 9 of 2018, which the industry is still grappling with mainly because of its effects on the agriculture industry and, in essence, the achievement of the government’s Big 4 Agenda. The Board of AAK is keenly following up on these issues and will ensure the voice and position of the agrochem industry is considered in discussions surrounding the (VAT) 2018.

We extend our gratitude to our members, partners and all stakeholders for their cooperation and support to the industry. We believe that with your confidence and support, we shall attain our goals and objectives and make a significant difference in the quality of life of our farmers.

We continue to ensure a balance of activities as can be noted in AAK’s key areas of focus.

Message From the Chief Executive Officer

The Board of AAK is keenly following up on these issues and will ensure the

voice and position of the agrochem industry is considered in discussions

surrounding the (VAT) 2018

Evelyn LusenakaChief Executive Officer

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Institutional Development

Product Stewardship

Policy and Standards

Partnership Building3

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AAK’s Strategic Areas of Focus

To grow and develop AAK into a dynamic,

effective and sustainable development actor

Focus on enabling strategic engagements and collaborations within the industry and

with other relevant actors

Development and enforcement of the industry’s standards

and best practices regulatory frameworks

AAK’s core business and mandate of promoting responsible use of different products for the well

being of users and the environment

AAK Strategic Areas of Focus

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Institutional Development1.1 AAK’s 59th Annual General MeetingAgrochemicals Association of Kenya held its 59th Annual General Meeting (AGM) on Wednesday, 28th March 2018 at the Intercontinental Hotel, Nairobi.

The following board members were elected unopposed.

Board members representing local companies Mr. Wachira Mureithi (Ultravetis E.A Ltd). Mr. Joseph Muli (Nordox (AS) K Ltd). Mr. Manoj Shah (Osho Chemical Industries). Mr. Hezekiah Macharia (Twiga Chemical Industries).

Board members representing multinational companies Mr. Patrick Amuyunzu (Arysta Lifescience (K) Ltd). Mr. Eric Bureau (Bayer E.A Ltd).

Board member Representing Affiliate members Dr. Mwangi Gitonga (Lessos Veterinary Supplies) -

Representing Distributors

1.2 Board Induction/Corporate Governance Training On the 25th and 26th of May 2018, under the leadership of AAK Chair, Mr. Patrick Amuyunzu, the Board of AAK were taken through a board induction exercise and corporate governance training at the Lake Elementeita Serena Camp. The corporate governance training was facilitated by the Centre for Corporate Governance (CCG). The training focused on the mandate and objectives of Agrochemicals Association of Kenya (AAK), and the functions and responsibilities of the AAK Board of Directors, Chairperson, Chief Executive Officer and the Management. The induction programme was a means of providing the new board members (2018 ‒ 2021) with all the information and support they need to discharge their mandate during their tenure at the Association.

Some of the Board Members

Awarding of Board Competence certificates

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1.4 Members’ Networking ForumAAK hosted its members to several networking forums for purposes of business networking and to bring members up to speed with the trends in the local and global agrochemical industries, which trends may have an impact on how business is being done in Kenya and beyond.

On 12 July 2018 – Crowne Plaza Hotel: The networking forum brought together members for a relaxed evening where the association had lined up speakers from CropLife Africa Middle East (CLAME) and Trans Union Kenya.

Stella Wafukho of CLAME discussed the policy changes in the European Union (EU) which are likely to impact on future pesticide registrations and trade, specifically the directives and regulations on hazard-based assessment of pesticides.

Members have been increasingly reporting cases of unscrupulous distributors who have reneged on paying for goods advanced to them on credit. Trans Union Kenya (formerly Credit Reference Bureau) gave presentation on credit practices which are affecting or likely to affect members and distributors of their products. Ms. Wangechi Wachira from Trans Union Kenya presented the option of having a closed user group that allows for sharing of confidential information among members about their creditors. Members were advised to form a closed user group in which a database of the performance of creditors is monitored and shared to inform future credit advances.

On 15 November 2018 – Crowne Plaza Hotel, Nairobi: AAK yet again organized another networking forum for the CEOs, Directors and Heads of Business of AAK member companies. In this forum, KPMG made a presentation focusing on taxation issues ‒ understanding of tax exemption, zero rating and 16%, Duty Remission under EAC Scheme, tax refunds, implementation of the 16% VAT and the way forward for the agrochem Industry.

Stella Wafukho – Director of Regulatory and Stakeholders Affairs, CropLife Africa Middle East

Members at a cocktail party in Crown Plaza Hotel, Nairobi

Membership 2018

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1.3 Membership DevelopmentNew membersIn 2018, AAK succeeded in forming the Veterinary Inputs Suppliers Association (VISAK). The association will deal with animal health issues and its membership is drawn from animal health companies. VISAK falls under Affiliate Membership of AAK. The inclusion of Fertilizer Association of Kenya (FAK) as a member in the category of Affiliate Membership is also underway.

Kenya Agriculture Livestock Research Organisation (KALRO) joined the AAK family under the Associate Membership category.

Full Members Affiliate Associate Members Members

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Members were advised to form a closed user group in which a database of the performance of creditors is monitored and shared to inform

future credit advances.


1.6 Members’ Satisfaction SurveyIn order to serve its members better, AAK conducted a survey on service satisfaction to its members in the year 2018.The survey was meant to understand better AAK services to its members and the industry at large. Please read the findings of this survey in Appendix 1 on page 17.

1.5 Team Building for AAK StaffOn 21st November 2018, , the AAK staff were privileged to take part in a team building exercise at the Serena White Sands Hotel in Mombasa. The main objective of this exercises was to ensure that

Team building exercises

There was lots of creativity during the team building exercise

all staff understand AAK’s long-term objectives as spelt out in its Strategic Plan and to promote better teamwork to help achieve the Association’s objectives.

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AGROCHEMICALS ASSOCIATION OF KENYAAGROCHEMICALS ASSOCIATION OF KENYA

Regulatory, Policy and Standards2.1 Breakfast Meeting to Strategize on Sustainable Management of Empty Pesticides Containers (EPCs)

Les Hillowtiz of CLAME giving his presentation AAK’s Stewardship Manager, Benson Ngigi on facts about pesticides

Pesticides are an integral part of any agricultural activity. Pesticide packaging varies - plastic containers, metallic drums and polythene. Due to the frequency with which the pesticides are used on the farm, there is a high environmental and public health risk that stems from the improper disposal of these Empty Pesticide Containers (EPCs). In many developing countries, Kenya included, farmers and especially the smallholder farmers remain unaware of the health and environmental risks of the improper disposal of EPCs.

It is very common to find households reusing these EPCs for storing foodstuffs. The re-use of these EPCs is done in oblivion to the fact that it is impossible to remove all traces of toxic chemicals. This is clearly an unsafe practice that must be discouraged. The problem at hand affects all stakeholders in the agricultural sector. It is with this understanding that the

Agrochemicals Association of Kenya (AAK) and its stakeholders held a meeting to chart a way forward for the better management of EPCs and mitigate possible hazards.

The meeting was held on 30th November 2018 at the Movenpick Hotel, Westlands. In attendance were Dr. Ayub Macharia, the Director of Environment, Education and Awareness on matters relating to plastic waste management at the Ministry of Environment and Natural Resources. Also present were member of Pest Control Products Board, recycling companies, producer groups and AAK stakeholders and member companies. The stakeholders at the meeting agreed to work together in setting up a sustainable national container management programme that is in line with the country’s legislation on plastic management as well as the code of conduct on pesticide management.

2.2 AAK Members Get Prepared For Global Harmonized System (GHS) of Classification and Labelling of Chemicals Implementation

The Agrochemicals Association of Kenya (AAK) convened a training seminar for its members to bring them up to speed with the Global Harmonized System of pesticide classification and labelling of pest control products, otherwise referred to as GHS.

The event, held on the 13th of June, 2018 at the Eka Hotel in Nairobi was graced by facilitators from the Pest Control Products Board (PCPB) and CropLife Africa Middle east (CLAME).

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The GHS was set in place in 2002, and the directives are continually revised with the latest being in July, 2017. Ms. Stella Wafukho from CLAME gave the African Experience for countries in the continent who have signed to the agreement. The use of hazard-based risk analysis as opposed to risk-based analysis was mentioned as one of the downsides of the system especially in the African context where this could have some trade repercussions. The Kenyan

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document has been highly instrumental in enabling other African countries in benchmarking and implementation of their own national frameworks.

Few signatory countries have attained full harmonization but a sizeable number are on the way to achieving this target. The implementation of the GHS is expected to gain steam once the proposed amendment to the Kenyan Pest Control products act are put in effect.

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Product Stewardship Activities3.1 Responsible Use Trainings3.1.1 AAK enhances the fight against Fall Armyworm in KenyaFrom the time the pest was reported in Kenya in 2016, AAK has been raising awareness about the Fall Armyworm (FAW) through farmer field days, exhibitions, seminars and workshops. The field days and exhibitions particularly target extension officers, technical staff and farmers in different counties. The aim of the programme was to educate the target groups on the various IPM approaches to FAW management. This included the preparation and communication

of a list of recommended and regulated pesticides and bio pesticides and their appropriate application methods.

The Programme was a joint effort by AAK and its member companies, respective county governments, Kenya Markets Trust (KMT), Pest Control Products Board (PCPB), Kenya Plant Health Inspectorate Service (KEPHIS), Ward Agricultural Officers (WAOs) and other stakeholders.

To ensure a good number of farmers were reached , AAK adopted different strategies including; bulk text messages to farmers, local radio adverts, review meetings with relevant stakeholders, use of mobilization caravans tools, availing transport vehicles (for transporting farmers to and from their respective wards), among others.

3.1.2 AAK Reaches out to Marginal-ized Farmers on Responsible Use of PesticidesThe government of Kenya has over the years made significant investment in the development of irrigation infrastructure in the country. Thousands of acres have as a result been opened up for irrigated agriculture to communities that had never practised agriculture before and are now learning about the production of various horticultural and staple crops.

Production relies on a variety of pesticides for management of pests and diseases which afflict tropical agriculture. AAK, in partnership with the National Irrigation Board, reached out to five such irrigation schemes in Elgeyo Marakwet, Uasin Gishu, Nandi, Bomet and Narok counties. 180 Progressive farmers from the Kipchukchuk in Elgeyo Marakwet, Chepkosom Miteitei in Nandi, Naroosura in Narok and Bomet -Chebarra irrigation schemes were taken through the key steps to ensure that pesticides are used responsibly for environmental safety as well as user safety and health. Also emphasized was that the farmers avoid use of counterfeits as well as illegally imported unregistered products.

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A FAW campaign in Kisumu


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AGROCHEMICALS ASSOCIATION OF KENYAAGROCHEMICALS ASSOCIATION OF KENYAAGROCHEMICALS ASSOCIATION OF KENYA

Lower Sabor Irrigation Scheme Nandi County

Narok South Cheberra irrigation Scheme

Training of farmers from marginalized areas on responsible use of pesticides

3.2 Spray Service Provision (SSP) achieves another Milestone in Kenya3.2.1 Monitoring, Evaluation and Distribution of Personal Protective Equipment to Spray Service Providers (SSPs)

From 19th February to 2nd March 2018, AAK/CropLife Kenya and SNV collaborated in the monitoring, evaluation and distribution of Personal Protective Equipment (PPE) to its Spray Service Providers (SSPs) in six of the operational

counties in Kenya. The respective county government departments of Agriculture in these counties played a key role in the monitoring and evaluation exercise as well as facilitating the SSPs to receive their gears.

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CropLife Kenya SSPs receive PPE kits

3.2.2 Training of Spray Service Providers at the Rukiri Tea FactoryFrom 6th to 9th March 2018, Rukuriri Tea Factory in Runyenjes Sub-County of Embu County took the initiative to train 50 Spray Service Providers (SSPs) from the vast pool of tea growing small-scale farmers in collaboration with Pest Control Products Board (PCPB) and CropLife Kenya (AAK). The training, under the leadership of the Field Services Coordinator (FSC), Mr. Joel N. Nyaga, was carried out in the different production blocks to ensure that the farmers who cultivate other vegetable food crops such as tomatoes, kales and cabbages and were in a position to use pesticides effectively and safely.

3.2.3 Osho Chemical Industries links with SSPs in NakuruOn the 29th of June 2018 the Osho Chemical Industries undertook a pilot networking and adoption exercise to train and build the capacity of CropLife Kenya Certified Spray Service Providers (SSPs) in Nakuru County. This was to ensure that Osho Chemical Industries links with the Spray Service Providers in Nakuru county. This would consequently diversify the SSP’s business portfolios of the existing SSP businesses. The forum was attended by eight (8) Osho Chemical Industries officials, forty (40) certified CropLife Kenya SSPs and the CropLife Kenya SSP Field Coordinator.

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AGROCHEMICALS ASSOCIATION OF KENYAAGROCHEMICALS ASSOCIATION OF KENYA

3.2.4 SSP support for Potato Value Chain in Keringet, Nakuru CountyIn line with supporting the potato value chain KCSEED foundation - a community owned foundation based at Keringet Location of Kuresoi District in Kenya and supported by 2SCALE/IFDC, - collaborated with Equity Bank and DODORE to offer a two-day critical business and financial management training to the 30 Spray Service Providers trained earlier in May. This was done in partnership with AAK/CLK. During this session an additional 23 SSPs based in Keringet that had been trained in August through the Agri-Vijana/SNV initiative were included in the training. The Equity Bank team gave critical training on business, entrepreneurship and financial skills and illuminated on products such as credit, banking

and loan services. The 30 SSPs also received critical awareness and sensitization training on Agri-wallet and how they can offer services to farmers in Keringet zone and receive payment through the mobile based payment system. The business training of the KCSEED SSPs was followed by community‒based graduations and field days in the month of October 2018 with the aim of creating awareness and sensitization of SSPs’ presence and activities in the Keringet farming community. The exercise was conducted in the farming zones of Tendwet, Sabtet, Kapkores, Bararget and Siwot. A total of 905 farmers attended the field days and seven (7) Empty Pesticide Collection (EPC) sites were established in the respective zones.

CropLife Kenya SSPs and Osho Chemical industries Ltd staff product training in Nakuru Eastmark Hotel in June 27th 2018

CropLife Kenya and SNV SSPs receive their certificates and spray identity cards

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3.2.7 AAK/CropLife Kenya partnership with the United States Agency for International Development (USAID) on SSPsIn November 2018, CropLife Kenya signed a partnership agreement with the United States Agency for International Development, USAID through its Kenya Crop and Dairy Market Systems Development (KCDMSD) facility. The project aims to train and deploy 800 SSPs in 10 counties. The objectives of the project are to increase productivity at farm level, reduce poverty among the rural households

and decrease malnutrition caused by lack of access to adequate safe and healthy foodstuffs. The project is working with private sector entities to achieve this goal and CropLife Kenya is required to ensure that the trained SSPs will deliver sound usage of pest control products as well as the responsible disposal of empty pesticide containers.

The objectives of the project are to increase productivity at farm level, reduce poverty among the rural households and decrease malnutrition

caused by lack of access to adequate safe and healthy foodstuffs.

SSP case study

development activity in

various counties in

kenya

3.2.5 Sharing and Exchange of experiences by SSPsOn 12th July 2018. Croplife Kenya was part of the SNV-organized Kenyan Market-led Horticulture Programme (KMHP) and Smart Water for Agriculture (SWA) program partners’ day at the Safari Park Hotel which brought together the two SNV programmes. From the programme and objectives of the day, a big focus on the day explored with stakeholders and different business cases on how to stimulate access to finance for scaling up projects on the ground.

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3.4.6 Case Studies of SSPs Conducted by CropLife Kenya/AAK and SNVCropLife Kenya and SNV undertook case studies of SSPs in six (6) operational project counties during the period from 22nd to 28th July 2018 in a bid to highlight the impact and success stories of SSPs. The case studies were carried out in close collaboration with the Department of Agriculture at the county, sub-county and ward levels while working with farmers, agro-dealers, SSPs and project partners in the counties of Makueni, Nyeri, Nyandarua and Bungoma. The result was three (3) short films on SSP achievements and these are available on the AAK website.

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Anti-Counterfeit ActivitiesAAK/CLK Anti-Counterfeit Steering Committee (ACSC) took a primary role in driving for a more coordinated approach to tackle counterfeiting menace in 2018 by collaborating with the Multi-Agency Anti-Illicit Trade Working Group which was initiated by President Uhuru Kenyatta to curb illicit trade in Kenya. This multi-agency comprises the government’s law enforcement agencies, the private sector, consumer organizations and civil society. Anti-Counterfeit Agency (ACA), a state corporation whose responsibility is to enlighten and inform the public on matters relating to counterfeiting, combat counterfeiting, trade and other dealings in counterfeit

goods is part of this multi-agency and has been working very closely with AAK.

4.1 The launch of Inter-Agency Anti-Illicit Trade Working Group AAK participated in a consultative meeting organized by ACA that was held at The Boma Hotel, Nairobi on 3rd April 2018. The forum was meant to facilitate dialogue between the government’s law enforcement agencies, the private sector, consumer organizations and civil society to forge a joint action and collaboration against counterfeits and other forms of illegal businesses.

The PS for Trade, Dr Kiptoo (3rd from right) with other CEOs at The Boma

Participants at The Boma Hotel

This event took place at the Namanga Border on 1st March 2018 and targeted the business community in that area. The objective of the forum was to increase the level of awareness of the agency and its operations and to build capacity of the enforcement officers in and within the vicinity of the border. The forum was also expected to help formulate the best model for inter-agency collaborations at the one stop border points aimed at curbing counterfeits.

The Executive Director ACA, Mr. Elema Halake (right), with the team from ACA

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4.2 AAK Collaborates with ACA in Fight against Counterfeits at the Namanga Border

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4.3 Destruction of Counterfeit Goods at EPZA On 31st May 2018. AAK was part of the team that witnessed the event organized by ACA for the destruction of counterfeit goods valued at Sh37 million at the Export Processing Zone Authority (EPZA) in Athi River. The event was presided over by the Multi-Agency team which included the head of the Anti-Counterfeit Agency, Elema Halake, Deputy Head of Public Service. Wanyama Musiambo, Chairman of Parliamentary Committee for Trade. Kanini Kega and Trade PS Chris Kiptoo. ACA has nabbed over Sh1.7 billion worth of counterfeit goods and made over 840 arrests since the agency came into operation in June 2010. The counterfeit products destroyed so far are worth Sh800 million while the rest are exhibits in ongoing court cases.

PS Trade, Dr. Chris Kiptoo. and Kanini Kega during the event

Some of the counterfeit goods to be destroyed

4.4 Stakeholders Consultative Forum on the proposed amend-ments of the Anti-Counterfeit Act, 2008 towards improving service delivery of the Big 4 Agenda On 13th June 2018. AAK participated in the Anti-Counterfeit Agency’s Stakeholders Consultative Forum that was meant to sensitize the public on the proposed amendments of the Anti-Counterfeit Act, 2008. The forum which was held at the Boma Inn Hotel, Nairobi. was presided over by the Executive Director of ACA Mr. Elema Halake and attended by representatives from different organizations.

4.5 Strategy meeting at Eka HotelOn 26th June 2018, AAK in partnership with the Kenya Markets Trust (KMT), organized a strategy meeting at Eka Hotel, Nairobi, to strategize on the fight against counterfeits in the agrochemical industry. The meeting discussed innovative ways and different approaches the industry can take to curb the counterfeiting menace. The meeting was attended by personnel from Pest Control Products Board (PCPB), technology experts in the field of counterfeiting and representatives from AAK member companies. The aim of the event was to improve understanding, highlight the difficulties being faced by AAK in enforcement of the Code of Practice and Accreditation Scheme and help bring to light more cohesive approaches based on current practices.

Part of the team that attended the meeting.

Participants during deliberations at Eka Hotel, Nairobi

Part of the team that attended the meeting

Participants during deliberations at Eka Hotel, Nairobi

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AAK Chairman, Mr. Patrick Amuyunzu (left), ACA Executive Director and officials from KRA and KEBS


Participants at the Boma Inn Hotel, Nairobi Presentation of the proposed amendments of the Anti-Counterfeit Act, 2008

4.6 Agro-dealer Outreach Activities a Notch Higher in 2018

Mr. Patrick Ngugi, the Chair ACSC, addressing the meeting

Participants at the meeting

On 2nd October 2018, AAK held a meeting with Regional Agro-dealer Associations (RAA) at the Jacaranda Hotel, Nairobi. AAK recognizes the very important role that agro-dealers play in the pest control products supply chain.

Representatives of 10 agro-dealer associations from different counties were invited for a 1-day consultative meeting. The objective of this meeting was to promote partnerships between AAK and County Agro-dealer Associations (CAAs) thus enabling faster resolutions of the challenges facing the

stakeholders of the agrochemical industry. In this forum, AAK and agro-dealers collectively discussed issues and explored solutions to increase self-regulation in the industry, particularly focusing on accreditation, with an ultimate goal of eliminating counterfeit and illegal pesticides in the industry supply chain. It also provided engagement with the agro-dealer associations with an aim of affiliating them to AAK membership and strengthening their structures and operations.

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4.7 Participation in the Trade Week and Exposition 2018As part of its commitment in working closely with the Multi-agency anti-illicit trade working group team to combat trade on counterfeits in the agrochemical industry, AAK joined ACA in the activities of the Trade Week and Exposition 2018. The event took place from 30th July to 3rd August 2018 at the Kenyatta International Convention Centre (KICC). One of the themes of the event was “Promoting Fair Trade Practices to Spur Delivery of the Big 4 Agenda”.

4.8 AAK Participation in the ACA’s North Rift Consumer Outreach Activities On 3rd and 4th December 2018, AAK joined ACA for a consumer outreach programme in the North Rift Region. The aim of the outreach programme was to sensitize the community on the risks of illicit trade, with a special focus on the agricultural sector. The programme coincided with the East African Community (EAC) Jua Kali Nguvu Kazi (JKNK) which was held at the Eldoret Sports Club grounds.

4.9 Anti-Counterfeit Awareness Campaign AAK’s Anti-Counterfeit Steering Committee (ACSC) in collaboration with the Pest Control Products Board (PCPB) and the respective county governments’ Departments of Agriculture conducted anti-counterfeit awareness campaign meetings in Meru and Kisii counties. This campaign is one of the strategies the committee embarked on to establish specific counterfeit challenges and the way forward for the industry regarding the vice. The objective of the meetings was to sensitize key stakeholders of the industry in the counties on counterfeiting of agricultural pest control products.

Cabinet Secretary – Trade, Industrialization and Cooperatives, Hon. Peter Munya (2nd from right) and PS Trade, Dr. Chris KIptoo, during the exposition

Delegates in a group photo

AAK team explaining the accreditation scheme to the public

Proceedings at the anti-counterfeit campaign in Meru

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Partnership Building5.1 Public-Private Dialogue5.1.1 AAK Board meets with different departments in the government to lobby on Tax Laws (Amendment) Bill 2018

AAK Board meets with Parliamentary Committee Group in Agriculture at the Intercontinental Hotel, Nairobi

Meeting with Kenya National Assembly’s Departmental Committee on Finance and National Planning

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Agrochemicals Association Board of Directors held meetings with different government bodies to discuss the proposed bill (Taxation Law (Amendment) Bill 2018) and its impact on agriculture, the economy and the country’s Big 4 Agenda.

This dialogue will continue in 2019 to ensure that there is a conducive environment for farmers and the agriculture sector in Kenya.

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1. MEMBERS SURVEY REPORTSUMMARY REPORT ON AAK MEMBERS SERVICE SATISFACTION SURVEY-2018In order to serve its members better, AAK conducted a survey on service satisfaction to its members in 2018.The survey was meant to understand better AAK services to its members and the industry at large.

A questionnaire was administered through an online platform where members presented their views on various aspects of service delivery by the association. With regards to this, the analysis was done and the findings were as follows:-

Board and Sub-committeesOf the responses received, a greater proportion (71.4%) declared their interest to serve as AAK board members while the remaining 28.6% did not express interest. From the analysis, 100% of the respondents, declared their interest to serve in AAK Board sub-committees.

Participation in AAK ActivitiesA large proportion of the industry members (93.3%) participated in AAK’s activities in 2018, with the AGM having the highest, followed by Regulatory meetings with networking cocktail recording the least.

Quality of AAK Cocktails, Meetings, Trainings and SpeakersAbout 64% of the respondents rated AAK’s events as of high quality while 35.7% rated them as of very high quality.

Policy, Lobbying and AdvocacyOn lobbying for removal of 16% VAT, one (1) in two (2) respondents were somewhat satisfied with the lobbying that was done last year on VAT. On AAK lobbying on regulatory issues with PCPB and MOA, 1 in 2 were very satisfied with 1 in 3 being somewhat satisfied.

AAK effort in stewardship ActivitiesFrom the analysis, a greater proportion were aware of the AAK stewardship activities

CommunicationsCommunication to members by the CEO received the highest rating according to the survey. 3 in 4 were satisfied with the quarterly reports/newsletter and annual reports.

Duration of membershipA large proportion of the respondents have been members of AAK for a period of 1 to 5 years.

APPENDIX

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Social Media57.31% said they follow AAK on social media with LinkedIn receiving a higher proportion (75%). According to the survey 40% usually visit the association’s website while 40% visit the website only occasionally.

AAK response to concernsAccording to the survey, a greater proportion (73.3%) confirms AAK responds to complaints quite well

Suggestion on non-membership The responses on the suggestions on non-members who should be considered for AAK membership were as below:

Kenya Seed Company Ltd, Mazao na Faida and Muguri Agri Supplies Ltd

Other concerns from the respondents according to the survey

(i) Can a volunteer join more than one sub-committee?

(ii) With the removal of the appreciation /meeting allowance, is there an alternative to motivate members or cater for travel expenses?

(iii) There seems to be sometimes some overlap or lack of accountability for some topicsFor example, for Empty Containers, is it under Stewardship or Partnerships or Board responsibility?

Recommendations from the respondents to the sub-committees The Board to maintain its current level of performance.

Lobbying on members’ issues to be stepped up and should start early for VAT.

Improve on engagement with members.

Sub-committee members should be acknowledged frequently to encourage them to contribute to the topics.

The impending ban of plastic bottles to be taken seriously and members to come up with a way forward for the industry.

AAK to organize for an interactive dinner for member companies’ employees to interact.

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2. IMPORT ANALYSIS 2015-2018According to this analysis, Pesticide imported in 2018 was 17,829.997 tones valued at Ksh. 13.12 billion. This is 20% increase in volume compared to 14,736.64 tons imported in the year 2017 and valued at 12.72 billion. The value of importation increased by 3.2% from 2017 to 2018.In terms of volume, the category of product that was imported most was Herbicide with 5,899,020 tones translating to Kh.2.67 billion, this is 35.5% increase from 2017.It was followed by

fungicide and insecticide with 5,163,972 tones (Ksh.4.16 billion) and 4,536,117 tones (Ksh.4.76 billion) respectively. Fungicide import volume increased by 40% while Insecticide increased by 21% in 2018.

In general, the volume of import has been growing steadily over the past 5 years for all the pesticide categories. This is demonstrated by the charts and tables below.

Category 2015 2016 2017 2018 % Growth 2016

%Growth 2017

% Growth 2018

Herbicide 1,827,290,917 1,885,628,613 2,317,371,430.65 2,669,587,397.73 3.30 22.90 15.20

Insecticide 2,899,850,352 3,322,769,646 4,710,399,459.84 4,758,543,709.56 14.58 41.76 1.02

Fungicide 2,715,073,763 4,216,134,573 3,352,448,250.77 4,157,521,076.13 55.29 -20.48 24.01

Acaricide 466,905,600 1,478,390,332 1,464,099,021.58 359,767,110.90 216.64 -0.97 -75.43

Adjuvant 0 176,619,790 121,348,967.64 243,158,208.34 -31.29 100.38

Miticide 254,320,800 151,672,278 180,412,924.81 265,787,776.40 -40.36 18.94 47.32

Nematicide 124,489,106 159,604,830 224,930,700.98 143,076,113.20 28.21 40.93 -36.39

Rodenticide 0 28,945,285 33,702,486.56 44,681,452.82 16.44 32.58

Others 359,796,734 51,974,527 291,446,191.65 481,394,826.28 -85.55 460.75 65.17

TOTAL 8,647,727,272 11,471,739,874 12,716,159,414.49 13,123,517,671.36 32.65 10.84 3.20

Sr.# Pesticide

Category

2015 2016 2017 2018 % Growth 2016

% Growth 2017

% Growth 2018

1 Herbicide 2025803 4139478 4354232 5,899,020 104.34 5.19 35.48

2 Insecticide 1889135 2751206 3746427 4,536,117 45.63 36.17 21.08

3 Fungicide 2476783 4965268 3673816 5,163,972 100.47 -26.00 40.56

4 Acaricide 577800 1372254 1598260 280,978 137.50 16.47 -82.42

5 Adjuvant 2135900 958022 192208 301,014 -55.15 -79.94 56.61

6 Miticide 218876 128414 124556.5 252,628 -41.33 -3.00 102.82

7 Nematicide 111348 280966 75051 319,814 152.33 -73.29 326.13

8 Rodenticide 0 36800 38725 54,453 5.23 40.61

9 Others 559729 52626 933364 1,022,001 -90.60 1673.58 9.50

Pesticide Yearly Total Value in Kshs.

Pesticide Yearly Total Volume in Kgs/Litres.

20


AGROCHEMICALS ASSOCIATION OF KENYAAgrochemicals Association of Kenya

AAK/ImportDataanalysisPage3of6

ANALYSIS OF PESTICIDE YEARLY TOTAL VOLUME IN IN KG/LITRE.

Pesticide Category

0

1

2

3

4

5

6

7

Acaricide Adjuvant Fungicide Herbicide Insec?cide Mi?cide Nema?cide Others Roden?cide

YearlyTotalim

portsinMillionsofK

g/Litre.

Sumof2015

Sumof2016

Sumof2017

Sumof2018

Agrochemicals Association of Kenya


IMPORT VALUES

Pesticide Category

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Acaricide Adjuvant Fungicide Herbicide Insec?cide Mi?cide Nema?cide Others Roden?cide

Yearlyim

porta7

onto

talsin

Billionsof

Ksh.

YearlyAnalysisoftotalpes7cidecategoriesimported

Sumof2015

Sumof2016

Sumof2017

Sumof2018

Analysis of pesticide yearly total volume in Kg/Litre

Import values

Yearly Analysis of total pesticide categories imported

Pesticide category

Pesticide category

21

AGROCHEMICALS ASSOCIATION OF KENYAYe

arly

Tota

l im

port

s in

Mill

ions

of t

ons.

22

AGROCHEMICALS ASSOCIATION OF KENYAAgrochemicals Association of Kenya


QUARTERLY TOTAL VOLUMES IN KG/LITRE

0

1

1

2

2

3

Qua

rlyto

talinKg

/Litr

e

Millions

Quarter

QuarterlyTrendAnalysis

Herbicide

Insec?cide

Fungicide

Acaricide

Fumigant

Mi?cide

Nema?cide

Roden?cide

Others



QUARTERLY IMPORT VALUE ANALYSIS IN KSH.

0

200

400

600

800

1,000

1,200

1,400

1,600

totalq

uarterlyvalue

inKsh

Millions

Quarters

AnalysisofQuarterlyImportvalues

Herbicide

Insecticide

Fungicide

Acaricide

Fumigant

Miticide

Nematicide

Rodenticide

Adjuvant

Others

Quarterly total volumes in kg/litre

Quarterly import value analysis in Kshs.

Quarterly trend analysis

Quarter

Quarters

Analysis of quarterly import values

23


3. AAK ACTIVITIES

Annual General Meeting and networking forum on 28th March 2018 , Intercontinental Hotel

AAK Likia Tree Planting exercise at Likia on 13th April 2018

Members’ Networking Forum

Empty Pesticide Container Strategy Breakfast Meeting at EKA Hotel on 30th November 2018

24


VAT Breakfast Meeting at Radisson Blu, 30th August 2018

Anti-Counterfeit Activities

Spray Service Provider(s) Trainings

Responsible Use Training (Fall Armyworm Campaigns and Exhibitions

25


For the year ended 31st December 2018 2018 2017 Note Kshs Kshs

Association Income

Import levy 53,087,832 49,795,377

Subscriptions 4,130,000 2,691,000

Membership/Entrance 6,000 16,500

Tree planting 1,370,000 -

58,593,832 52,502,877

Other incomes

Interest income 14 1,915,225 1,247,491

Member dinner - -

PEMAK services 192,000 336,000

Grant- croplife (Anti-Counterfeit) - 3,051,000

Miscellaneous income 400,921 808,101

2,508,146 5,442,593

Total income 61,101,978 57,945,470

Expenditure

Product stewardship 4 26,614,671 20,760,945

Partnership building 5 4,735,361 2,182,536

Animal health 6 787,441 1,149,057

Institutional development 7 20,568,458 20,028,700

Regulatory policy and standards 8 1,557,811 1,407,751

Anti-counterfeit 9 2,420,588 1,901,403

56,684,330 47,430,393

Surplus from operations 4,417,648 10,515,077

Designated projects 19

Grants received 6,499,133 8,979,305

Project expenses (6,448,142) (15,037,018)

50,991 (6,057,713)

4. STATEMENT OF COMPREHENSIVE INCOME

26


5. AAK MEMBERSHIP 2018

27


CROP PROTECTION AFRICA

Registered and Distributed by TOPSERVE EAST AFRICA LTD. Tel.: +254-20-3746402, 2496323 Mobile: 0722377836, 0722880055 Email: [email protected]

Helmet 500EC is a systemic fungicide for control of powdery Mildew in Roses. Helmet is applied as a foliar spray at a rate of 1 lt / ha. Helmet 500 EC contains the active ingredient Spiroxamine 500g/ Lt. Helmet 500EC is a highly protective , curative, and eradicative fungicide. Helmet 500 EC has an immediate action on fungus once applied. Helmet 500 EC is soft on beneficial insects and to the environment.

Serve

28


SINERIA KENYA LTD. P.O.BOX: 47323 - 00100 Nairobi, Kenya Email: [email protected] www.sineria.com

Protecting People. Enhancing Lives.

Safina (E.A.) Limited

Grow more with Murphy......

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Agro-pest Fighters

29



P.O. Box 1380900800-Nairobi

Wireless No. 0202464811/812Mobile Nos. 0710447777; 0734447777

Email: [email protected]/Protect to Provide


CropLifeKENYA

AGROCHEMICALS ASSOCIATION OF KENYA

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