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ANNUAL REPORT 2020 AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA (AAK/CLK)

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Page 1: AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA …

ANNUAL REPORT

2020

AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA (AAK/CLK)

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

ContentsTable of

04. MESSAGE FROM THE CHAIRMAN

05. MESSAGE FROM THE CEO

08. AAK BRIEF AND ORGANIZATION STRUCTURE

11. INSTITUTIONAL DEVELOPMENT ACTIVITIES

14. PRODUCT STEWARDSHIP ACTIVITIES

19. REGULATORY ACTIVITIES

23. ANTI-COUNTERFEIT ACTIVITIES

24. IMPORT ANALYSIS 2015- 2020

26. AAK’S ACHIEVEMENTS 2020

29. APPENDICES

P/14

P/15

P/16

P/18

P/12

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The year 2020 will go into history as a year where the modern world was tested to the extreme due to the COVID-19 pandemic. This was least expected, and it brought about major changes in the way of doing things. The agrochemical industry was not an exception, although through its resilience and its importance in food production cycle, a general growth of the industry was experienced. However, this growth was not easily achieved, as it required great commitment in maneuvering through various restrictions and other measures that were put in place by the government to combat the pandemic. I would like to thank the Secretariat for issuing Essential Services Passes to member companies that ensured near tonormal operations.

Apart from Covid-19, the industry had its own share of successes and challenges which kept the Board and the Management engaged throughout the year. I wish to highlight some of the major milestones achieved in the year.

The Board of AAK through engagement with the Cabinet Secretary in the ministry of Agriculture, Livestock, Fisheries, and Irrigation led to the removal of PVOC requirements for Pest Control Products and veterinary medicines. This requirement had previously caused a lot of delays in the importationprocess.

Further, the association working together with Pest Control Products Board (PCPB) supported forums in which the Pest Control Products bill and regulation were subjected to public participation. This exercise is now complete and what remains is the collection of views from the public by the experts before presentation to the ministry for the next step. It is hoped that the process will be �nalized in2021.

On Corporate Social Responsibility front, the association was able to hold a successful tree planting exercise in Mau Forest as part of a partnership program with Kenya Forest Services (KFS) and Community Forest Association (CFA) to rehabilitate a 100 acres section of the Mau Forest.

On the �ip side, the industry is still faced with anti-pesticide campaigns from civil societies whose intention is to depict the industry in the negative. I would like to assure members that AAK/CLK is committed to bring voice of reason to the table and will continue to engage constructively with all stakeholders to ensure that we retain our respect while pursuing our agenda for improved andsustainable agriculture in the country.

Finally, the Board through the secretariat shall continue implementing its mandate in the areas of stewardship, regulatory, anti-counterfeit, and advocacy, to ensure a fair and sustainable business environment for the industry in pursuit of development of agriculture in Kenya. The Board is committed and will continue various dialogues with government and other stakeholders on the various issues that a�ect the industry. We hope to make gains in this endeavor and ensure a conducive working environment forthe industry.

Thank you and I wish all members a fruitful 2021.

Message from the Chairman

AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Patrick Amuyunzu, Chairman Agrochemicals Association of Kenya/Croplife Kenya

The Board is committed and will continue various dialogues

with government and other stakeholders on the various issues that a�ect the industry. We hope to make gains in this endeavor and ensure a conducive working environment for the industry.

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In business, no two seasons are alike. But 2020 tested our preparedness and resilience in an unprecedented manner, as we faced our generation’s largest locust invasion, together with the global Covid-19 pandemic. Over more than a year, Covid-19 has delivered a new paradigm in the disruption of business ecosystems, including our own.

Yet the industry remained focused and co-ordinated in supporting its members, starting with the strengthening of government and stakeholder engagement and public private dialogues at the height of the pandemic, which led to the classi�cation of our sector as an essential service. This minimised our supply chain disruptions and allowed our farmers to access inputs to produce food and enabled us to supply products for pest management problems that included locusts and FAW. It also cushioned the industry from the most serious e�ects of the pandemic, as witnessed in othersectors.

Indeed, coupled with a wet 2020, the industry bounced back, growing by 27% from its 2019depression.

At the same time, the strengthened dialogue between the government and industry delivered other reforms, such as the exemption of the PVoC requirement for crop protection products. This removed a regulatory duplication that had increased lead times andthe cost of doing business.

AAK and peer BMOs are now further strengthening their engagement in calibrating

AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Eric Kimunguyi, CEO Agrochemicals Association of Kenya/Croplife Kenya

Message from the Chief Executive Officer

policies and contributing to legislation such as the new PCP Bill and regulations 2020, with the regulations now undergoing the �nal public participation and regulatory impact assessments.

In that successful business requires predictable policies, AAK also engaged with the Kenya Revenue Authority (KRA) to streamline our industry’s HS codes and develop a KRA training school course relevant to our members.

We submitted input to the Finance Bill, 2020, and achieved zero-rating of agricultural PCPs, but have yet to secure the same for public health products, which we continue to pursue.We have also engaged the Ministry of Agriculture, Ministry of Trade, PCPB and other authorities in:

The successful approval for use by the PCPB of crop grouping extrapolation guidelines for cereals, vegetable, and herbs & spices, which will reduce the requirements for e�cacy and residue data, and thus costs, by extrapolating from the data from existing approved uses. We are also now working on similar guidelines for fruits and industrial crops.

Supporting the PCPB in its move to electronic dossier submission, which has reduced the time of submission while ensuring the integrity of the CBI, in a new dawn for the dossier submission process.

Identifying new policies to discourage the pile up of obsolete pesticides, which we have developed and shared with regulatorsfor review.

In business, no two seasons are alike. But 2020 tested our preparedness and resilience in an unprecedented manner, as we faced our generation’s largest locust invasion, together with the global Covid-19 pandemic.

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

In these e�orts, and across all our engagements, our role as industry stewards remains critical to our industry achieving the right practices and behaviour to ensure its innovations are safe and e�ective to users and the environment.

To this end, the curbs on physical meetings during the 2020 pandemic saw AAK move to digital platforms in training farmers in the responsible use of pest control products, through the sharing of SMS text guidance programmes with 13,571 farmers. The association also continued to develop a countrywide network of Spray Service Providers (SSPs), training and equipping a further 392 SSPs with the help of development partners, as the long-term solution to the nation’s stewardship needs. This growing SSP network, of now close to 1,000 trained operatives, o�ers the opportunity for members to accelerate the adoption of SSPs as an alternative and additional means of augmenting extension services that have become severely constrainedin recent years.

We also further strengthened our incidence reporting and surveillance through the retooling and training of the Poison Information Centre at Kenyatta National Hospital.Our safety drives also include the collection of empty pesticide containers (EPCs), which continued last year with the collection of more than 300t for incineration. However, this voluntary exercise will become statutory under the Environmental Management Coordination Act, and with the help of the Business Advocacy Fund (BAF), we last year also undertook a survey on EPCs that found we produce over 1.3m kgs of plastic and are only collecting 30% with our current industry-sponsored scheme. We o�er our sincere thanks to all those who participated in the survey and are now working with members to achieve 50% collection, or 650twithin1 year.

Another critical issue for our industry, in that it moves produces beyond both regulation and stewardship, and with often calamitous results, is the rise in counterfeit products, which has accelerated during the pandemic. We have commissioned a study from the Kenya Market Trust to inform our next action plan to secure the integrity of our supply chains and industry, and partnered with ACA and a multi-agency team to sensitise agrodealers and border

control o�cials to counterfeit activities.

However, all of these activities will only continue to be important if pest control continues in Kenya and the past two years have brought an onslaught against the plant protection industry. Fierce activism has taken advantage of the increased desire of consumers for product knowledge to feed them misleading information in order to skew the scienti�c narrative with emotional responses. This negative campaign culminated in Petition Number 70 of 2019 to parliament calling for the banning of products. The Parliamentary Health Committee has approved the petition for tabling in parliament with 17 key recommenda-tions. Some of the recommendations will have a far reaching consequences on plant protection in Kenya. We have not relented on this issue, engaging in advocacy within parliament and outside, even as various arms of government ask for progress on implementation.

We have also proposed a new paradigm to the government in the form of an industry-led pesticide management framework to provide systemic and sustainable solutions to the challenges facing plant protection now and infuture.

We have also increased our communications to both internal and external stakeholders through newsletters, social media, internal communications, video and knowledge sharing interactions. In addition, we have contributed to forums to build con�dence in food systems and food safety by connecting with value chain actors and in�uencers through mainstream and social media, by submitting memoranda, appearing in parliament, and other initiatives. While the activism has created undue pressure and panic in the industry, I see a silver lining in that it provides an opportunity for us to engage with stakeholders to debunk the myths and show case our competence in designing a sustainable pest management framework. On this basis, the outlook remains bright.

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

The association’s main revenues are from the levy, subscriptions and support from development partners. Total revenues for the year under review were (Kes 64,094,532) contributed as Levy (Kes 59,054,532) and subscription (Kes 5,040,000). We received donations from members to carry out pesticide campaigns to a tune of (Kes 3,775,800).Please see �nancial reports for further details. None of these achievements would have been possible without support from members, the Board of Management, the employees of the Agrochemicals Association of Kenya and our partners. We recognise the contribution of partners such as KMT, USAID, BAF, the Danish Embassy, FPEAK FPC, KFC, CGA, NPCK and many others for theirrole in the successes we have secured. As we face the challenges of 2021, we stand �t to retool and strengthen our resilience. Our principle objective is to restore the credibility, reputation and image of the industry so that our messages reach consumers undistorted and so that we may continue to deliver food security and resilient agricultural incomes to ourentire nation.

The association is as strong as its members and networks, on which basis we last year reviewed your feedback on our members’ value proposition, recruitment and retention strategy. As a result, we achieved another milestone in recruiting �ve newmembers during the pandemic, while working to retain members who had faltered in subscriptions in order to secure our membership growth. We will continue to personalise the membership and customer experience.

Membership Development and Partnership

Revenues

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

The Agrochemicals Association of Kenya (AAK) is the umbrella organisation in Kenya for Manufacturers, formulators, repackers, importers, consultants, distributors farmers and users. AAK also represents the International Agrochem Industry in Kenya and is therefore also knownas CropLife Kenya.

Membership to the association falls under 3 categories namely; Full members, Associate members and A�liate members.

Stewardship Manager

Administration Manager

Accountant

AAK Members

Board of Directors

Chief Executive O�icer

2. Sub Committees

1. Secretariat

Regulatory Manager

Product Stewardship

Institutional development

Partnership development

Regulatory, policy and standards

Anti Counterfeit Steering

Committee

O�ice Assistant

Organization structure

1. Mr. Patrick Amuyunzu- Arysta LifeScience Kenya Ltd/ UPL – Chairman, AAK

2. Mr. Wachira Mureithi- Ultravetis E.A Ltd – Vice Chair

3. Mr. Joseph Muli (Nordox)- Treasurer

4. Mr. Manoj Shah-Osho Chemical Industries Ltd

5. Mr. Hezekiah Macharia-Twiga Chemical Industries

6. Dr. Mwangi Gitonga-Lessos Veterinary Supplies Ltd

7. Mr. Laurent Perrier-Bayer E.A Ltd

8. Mr. Fredrick Otieno-Syngenta E.A Ltd

9. Mr. Eustace Muriuki- Fertilizer Association of Kenya

10. Mr. Evans Mutuva- Pest Management Association of Kenya

AAK brief and organization structure

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Product Stewardship

Francis Karanja (DDP Agrosciences Kenya Ltd) Tasked with implementing programmes and activities to enhance the responsible use of pest control products

Institutional Development

Regulatory, Policy and Standards

Catherine Wangu (Osho chemical industries)

Tasked with ensuring maintenance of quality standards and a favourable regulatory environment for industry

Anti-Counterfeit Steering Committee

Patrick Ngugi (BASF East Africa Ltd)

Tasked with coming up with strategies for �ghting illicit trade in the country

Partnership Development

Joseph Muli (Nordox AS (K) Ltd) Tasked with ensuring the sustainability of the association in terms of human and capital resources.

Hezekiah Macharia (Twiga Chemical Industries)

Tasked with seeking and forming partnerships with other likeminded organizations .

Sub Committee Chair

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

AAK’S STRATEGIC

AREAS OF FOCUS

Policy and Standards

Partnership Building

Aims to grow and develop AAK into a dynamic, e�ective and sustainabledevelopment actor

Focuses on enabling strategic engagements and collaborations within the industry and with other relevant actors

Ensures the develoment and enforcement of the industry’s standards and best practice regulatory frameworks

Institutional Development

AAK’s core business and mandate is to promote responsible use of di�erent products for the well-being of users and the environment

Product Stewardship

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Agrochemicals Association of Kenya held its 61st Annual General Meeting (AGM) for the year ended on 31st December 2019 on 23rd October 2020. The AGM that was initially to be held on27th March 2020 was deferred due to the ban on public gatherings under the COVID-19 regulations. During the AGM, the constitution of AAK was amended to accommodate both virtual and physical meetings.

The following o�cials were elected to serve the association for the year 2020/2021 as

Board members

1. Mr. Patrick Amuyunzu2. Mr. Wachira Mureithi3. Mr. Manoj Shah4. Mr. Hezekiah Macharia5. Dr. Mwangi Gitonga

Member elected during the AGM

1. Mr. Laurent Perrier-Bayer E.A Ltd

Members co-opted during the �rst Board Meeting

1. Mr. Fredrick Otieno2. Mr. Eustace Muriuki3. Mr. Evans Mutuva

AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

In the past year, the global pandemic necessitated several workplace changes such as virtual workplaces and remote teams. The association was not left behind as it continued focusing on meeting its objectives despite the pandemic. Most of the association's meetings, including the Annual General Meeting (AGM), sub-committee and board meetings tookplace virtually.

While this shift presented key challenges, it also provided numerous opportunities for the association's visibility as it continues engaging with members/stakeholders through social media platforms and creating awareness on responsible use and safety of pest control products through opinion pieces published on

local dailies, radio and television interviews in order to restore the reputation ofthe industry.

Now more than ever, the Association is striving to maintain high levels of engagement with its stakeholders and hopes that members will continue supporting these engagements in order to achieve e�ective communication withinthe industry.

1.0 INSTITUTIONAL DEVELOPMENT ACTIVITIES

1.1 Agrochemicals Association of Kenya (AAK) successfully holds a virtual AGM

1.2 Communication with Stakeholders moved a notch higher!

Social Media Platform Engagements

Despite the COVID-19 pandemic and the challenges it presented throughout 2020, AAK was able to enhance its communication strategies by utilizing digital tools in addition to the mainstream channels. Some of the new modes of communication utilized include the use of social media in tackling campaigns against pesticides, employing bulk short messages (SMS) as a way of engagingfarmers and adopting the electronic submission for dossier.

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Tree Planting Exercise dubbed “Adopt an Acre or More - Phase 3” was held on 06 November 2020 at Mau Forest-Likia.

The tree planting exercise held on 6 November 2020 was inaugurated by CAS, Ministry of Trade, Industry and Enterprise – Mr. Francis Karanja. He �agged o� athletes’ 2 km race in support of Mau Conservation. He lauded the Association for embracing tree-planting activities as a way of conserving the country’s water towers. He also reiterated the fact that the government in collaboration with stakeholders was on course in achieving the 10 percent forest cover target by the year 2022.

As part of our societal activities, the Agrochemicals Association of Kenya (AAK) and CropLife Kenya carried out the third phase of the tree planting exercise on 6th November 2020. AAK committed to rehabilitate 100 acres of the Mau Forest in Likia which was donated by the Kenya Forest Service (KFS). This activity was piloted on 24th November 2017 whereby 5 acres were planted in collaboration with the community around Likia Forest – Mau.

These have proven to be e�ective as we have received positive feedback from our stakeholders on this front. The Messages revolved around creating awareness on the regulatory data behind pesticides and the years it takes to develop a single pesticide from molecular discovery to approval for use by farmers. This is geared towards informing the public that pesticides are not only e�ective but also safe for human health and the environment. Our communication with stakeholders also involved adopting the digital strategies to correct misconceptions and the damaging publicity on pesticides that was initiated by activists in Kenya. The Association engaged all its stakeholders through various platforms that involved communicating both local and international news on agriculture and crop protection products.

The messages were intended to create awareness, of not only the safety of members’ products but also to create awareness on the aspect of the farm-to-plate experience, thus assuring the consumers that the food they consume meets highest quality standards for consumption. We request our members tosupport us on this by sharing and re-tweeting our daily posts.

The campaign hashtags are: #GetInputInformed #SafetyFirstOur social media platform accounts:

https://www.facebook.com/agrochem.croplifekenya

https://twitter.com/CropLifeKenyawww.linkedin.com/in/agrochemcroplifekenya

https://www.instagram.com/agrochem.croplifekenya

1.3 Our Societal activities

CAS Ministry of Trade, Industry and Enterprise, Mr. Lawrence Karanja, planting a tree during the exercise at Mau Forest-Likia

“As a government, we are on course in achieving the 10 percent forest cover target by the year 2022”

Mr.Lawrence Karanja – CAS, Ministry of Trade, Industry and Enterprise,

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

The Association sincerely thanks members who participated in the tree planting exercise and would like to encourage more members to participate in the next tree planting exercise planned for the year 2021. The following AAK member companies contributed to the success of this activity:

1.4 AAK Supports Pest Control Products Board (PCPB) to implement Electronic Dossier Submission

COVID-19 pandemic and containment measures put in place by the government have a negative impact on the process of dossier submission, hence provided an opportunity for the implementation of electronic submission. Given the foregoing problem, the Pest Control Products Board (PCPB) found it necessary to commence electronic dossier submission as atemporary measure. However, electronic dossier submission requires a strong understanding of the requirements, frameworks, skills and technologies in order to submit a compliant dossier. To this end, the industry facilitated an on-board session so as to bring industry players up to speed with the newmodel of submission.

CAS Ministry of Trade, Industry and Enterprise, Mr. Lawrence Karanja during the tree planting event.

An officer and the community planting trees at at the onset of tree planting exercise.

Computer donation to PCPB by AAK and Osho Chemicals Industries were received by the CEO of PCPB – Dr. Esther Kimani

15 Oct 2020

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

In spite of COVID-19, AAK received �ve (5) new entrants to the association namely; Jubaili, Pestmatic, Jojemi Agriventure, Transglobal Distributors Ltd as full members. Fertilizer Association of Kenya (FAK) joined as an a�liate member of AAK. Also, the Veterinary Input Suppliers Association of Kenya (VISAK) launched in 2019 to take care of the interests of the animal health industry attracted 30 recruits to theanimal health association in the year 2020. VISAK is an a�liate of AAK.

Stewardship activities have been among the most a�ected by the Covid-19 pandemic. Despite the tough circumstances, several activities have progressed albeit at a reduced tempo. Product stewardship is the life cycle approach to the management of Pest Control Products (PCP’s) from their research and development through the stages of Manufacture, storage, transportation, applicationand management of any wastes and obsolete stocks.

1.5 Membership Development

It is against this backdrop that PCPB requested AAK/CLK to provide support in the acquisition of infrastructures that will support electronic submission of dossiers. The association, with support of Osho Chemical Ltd responded to this call and donated 2 computers, a Printer and power back-up system to PCPB to aid in thisprocess.

Feedbacks from several industry members indi-cate that this initiative has reduced time for dossier evaluation.

11 Nov 2020

Computer donation to PCPB by AAK and Osho Chemicals Industries were received by the CEO of PCPB – Dr. Esther Kimani

Year Full Affiliates Associate Total 2020 50 7 1 58 Year Full Affiliates Associate Total 2019 51 7 2 60

2.0 PRODUCT STEWARDSHIP ACTIVITIES

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

The presence of pesticide residue in fresh produce destined for export remains a thorn in the �esh for the industry. With the ongoing campaign against pesticides and the shifting of pesticide regulations in the E.U market, farmer awareness on the production of safe food for local and export markets remains akey priority for AAK. In 2020, AAK in partnership with Vegpro Ltd organized farmers training programs in key French Beans growing areas in Kenya. The areas included Kaiani in Kathiani, Machakos County, Kimana in Oloitokitok, Kajiado County, Njukiniin Taveta County, Kandara South and Gatanga in Muranga County, as well as Kibirichia and Kiambogo in Meru County. These trainings aimed to address the issue of illegal and counterfeit products which �nd their way into the country through porous border points, the use of wrong application equipment and dosage rates by farmers as well as not adhering of Good Agriculture Practice such as Pre-Harvest Intervals and Crop Rotation. A total of 420 farmers and technical assistants were trained in the said 7 locations. All trainings were presented by Vegpro Ltd �eld o�cers, technical assistants, agronomists, and area managers.

2.1 Farmer trainings on Pesticide MRL compliance in fresh produce

The Covid-19 pandemic and subsequent regulations put in place by the Ministry of Health in 2020, made a huge impact on how we interact. AAK, with support from Kenya Markets trust set up a Short Message Service (SMS) platform to reach out to farmers. Using the existing farmers' and agro-dealers’ in AAK database, the association was able to send up to 352,846. The messages addressed key considerations by farmers such as; to enhance responsible use of pesticides, avoiding counterfeits, proper disposal of containers, adoption of IPM practices, and other Good Agricultural Practices related to safe and e�ective use of Crop Protection Products.

2.2 Responsible communication engagement platforms for farmers and Agro dealers

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

As with any responsible, organization, manage-ment of waste is a priority area. The activity gained impetus under the 2014 Clean Farms project, and annually the quantities of obsolete stocks are appraised and appropriate disposalmechanism set in motion.

In 2020, 26,000 Kgs of assorted obsolete stocks were identi�ed and disposed by AAK. An additional consignment of about 10 tons was identi�ed later andwill be disposed in 2021

With the slow progress in getting consent for product revalidation from PCPB, members are urged to declare any obsolete (expired or banned) products they or their distributors may be holding in their warehouses, by clicking onthis link

The year 2020 was expected to be a good year for newly trained Spray Service Providers (SSPs) under the KCDMS project. As an indication of the resilience of the agricultural industry, SSPs were able to continue o�ering services to farmers after they were issued with a full set of standard PPE kits. The SSPs serve as an example to other farmers on how proper application of Crop Protection Products should be done. The 392 SSPs from the counties of Busia Siaya, Makueni, Kitui, and Taveta were also linked to 84 reputable Agrovets in their neighborhood, which ensures that they only use quality products.

The SSPs o�ers services to farmers in diverse farming such as mangoes, horticulture, co�ee, tomato and maize. AAK/ CLK urges members to develop innovative partnerships with the SSPs. Some of the bene�ts that the SSPs can o�er are brand recognition, access to lead farmers for demonstrations, direct sales, and farmer mobilization. They are also key in counterfeitdetection and reporting.

Several testimonial videos on SSPs have been shared and can be viewed on our Twitter handle @croplifekenya and our Facebook page @agrochem. croplife Kenya

2.3 Spray Service Providers (SSPs) receive full PPE

2.4 Archaic pesticide stocks disposal

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Empty pesticide container (EPC) management is a key activity of AAK. In 2020 we safely disposed of 343,521 Kilos of empty pesticide containers which were collected from the �ower, fruit, vegetable, and co�ee sectors. A large portion of the empty containers collected were PET/HDPE plastics and disposal was done through incineration at the Environmental Combustion Consultants Limited (ECCL) facilities in Kitengelaand Migori.

To enhance EPC collection, AAK through the ETC consulting �rm, conducted a study to determine the status of empty pesticide container management in Kenya. The study provided a baseline from which the industry can embark on proper management of EPC’s nationally and more so targeting small-scale pesticide users whose collections were <1% of total collections in 2020. The study estimated that Kenya produces 1.38 Million Kilograms of EPC’s annually with 76% being HDPE and PET plastics. Laminates were also identi�ed as popular packaging material albeit with a lower weight fraction. With an estimated 1.3 Million Kilograms of empty pesticide container waste being generated, it means that the industry is disposing only 30% of the waste generated from HDPE, PET, Laminate, and other portions of pesticide packaging material used.

The Report’s Action Plan recommended the formation of an EPC fund from members, to support the set-up of collection and recycling system, partnering with stakeholders in farmer mobilization, awareness creation and sensitization as well as Government liaison for policy compliance. This is in line with the provisions of the Extended Producer Responsibility regulations which have been proposed by the Ministry of Environment and Forestry and are as described in section 2.2below.

In 2021, AAK plans to take a crop value chain approach to set up collection centers that will enhance access by Small scale farmers. The strategy shall be actualized as part of MoU’s that involve AAK and Cereal Growers Association/ National Potato Council/Fresh ProduceExporters Association and Fresh Produce Consortium of Kenya. Similar support shall be extended in regions where Spray Service Providers operate. Members have been making referrals for the collection of EPC’s from their customers. We urge those who have not taken advantage of this opportunity to create linkage with AAK for proper disposal of EPC’s.

2.5 Empty Pesticide Container management

2016 2017 2018 2019 2020

435,000Kgs 396,412

Kgs343,521

Kgs

314,218Kgs

EMPTY PESTICIDE CONTAINER COLLECTIONS

304,000Kgs

Quantity

Year

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

In 2020, the Ministry of Environment and Forestry set in motion the process of instituting Extended Producer responsibilityregulations for all producers of waste in the country. These regulations tie into the objectives of EPC management since they provide a policy framework from which a national container management program can be put in place.

The Ministry requested public participation in the regulations, and as an industry, we provided our input. A 2nd draft of the document was reviewed by the Ministry and gazettement is expected in the 2nd Quarter of 2021.

In a bid to sensitize members on these proposed regulations, a webinar was organized in August 2020. It is our objective that all members will be adequately prepared when the regulations come into force and updates on the regulations will be given to members as new information is received.

Manufacturers under the umbrella of the Kenya Association of Manufacturers (KAM) have already partnered with PETCO to set up a functioning PET waste collection and recycling system. Our sector is however limited from making a similar partnership due to the classi�cation of EPC’s ashazardous waste.

2.6 Extended Producer Responsibility Regulations (EPR) by Ministry of Environment

The Poison Information Centre is a resource set to o�er �rst aid response services to pesticide users who may encounter harmful exposure. The PIC is supported by 24hour toll-free lines -0800720021/0800730030. As could be expected with many toll-free lines across the world, a signi�cant proportion of the calls received (up to 87%) are not related to poisoning, and AAK therefore went about putting a �lter system to ease the tra�c going tomedical personnel.

The �lter system is now working and only calls related to poisoning are channeled to medical personnel. Other cases are referred to agricultural experts nearest to the farmer and concerned companies. In 2021, we hope to partner with the Ministry of Health in cascading information on poison management to practitioners in Level 5 hospitals in major crop production areas.

2.7 Poison Information Centre

LIVE

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

3.1 Unlocking the non-submission of dossiers for PCPs registrations during the covid-19 pandemic.

This area covers issues related to (ensuring) product quality and other industry standards, including ethical practices, addressing challenges of counterfeits as well as ensuring a conducive policy and legal operating environment for the industry. Further, this pillar looks into codes of practice and fairness, including trade and anti-counterfeit management, business development as well asself-regulation within the industry.

Despite the challenges of covid-19 in the year 2020, progress was noted in regard to activities underthe Regulatory, policy and Standard Pillar:

As a measure to reduce contact during dossier submissions, it became imperative to devise a mechanism of electronic submission during the pandemic period in order to enable the registration of new pest control products and the renewal of registered products. A successful webinar discussion with PCPB led to an agreement to use online submission with structures and systems thatprotect con�dential and proprietary data.

3.0 REGULATORY ACTIVITIES

3.2 Policy interventions to address emerging issues

Review of PCPB Act 346 started supported by FAO through hired consultant

Review of PCP regulation started

Draft Bill subjected to public participation

Draft PCP Bill revert back forsu�cient stakeholders’ consultation

Road map drawn by PCPB on the stakeholder participation for the bill & regulation for approval by July, 2020

Draft PCP Bill revert back for su�cient stakeholders’ consultation

Draft PCP Bill Submitted to AG and back to Ministry of Agriculture, Kilimo house

2012

2013

2014

2016

2017

2019

2019

2020

PCP Bill and Regulations journey Draft PCP Bill subjected to stakeholders’

consultations (AFRALTI WORKSHOP) and submitted to Ministry of Agriculture

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

i. Fast-tracking of PCP Bill & Regulationsslowed down by covid-19 pandemic.

The goodwill to progress with the PCP Bill and Regulations towards approval was high, with a road map drawn to enable gazettement by July, 2020. The new Bill and regulations will increase the capacity and visibility of the regulator, enhancing their capacity approval of products and assuring the general public of safety. The Pest Control Products Act, Cap 346 of the Laws of Kenya which has been in operation for over thirty-�ve (35) years started the process of review eight (8) years ago and has encountered several challenges, ranging from emerging requirements as well as the covid-19pandemic.

As a step-in stakeholders’ involvement, the Bill and Regulations were tabled by the Intergovernmental Joint Agriculture Sector Coordination Committee (JASSCOM) and the drafting team were given a go-ahead to conduct county stakeholder consultations. The county stakeholders’ consultative meetings were held between 28th September, and 26th October, 2020. Deliberations from these meetings will be incorporated into the Bill and Regulations before the national validation exercise is conducted. The new PCP Bill and Regulations will address some of the challenges being raised by activists trying to negatively portray the products. The Ministry of Agriculture, Livestock, Fisheries and Cooperatives (MoALF&C) has shown commitmentto fast-track the Bill & Regulations approval.

ii. Gazette notice on exemption of pest control products, seeds and pharmaceuticals from PVOC requirements

The PVOC requirement by KEBs for such products that are already regulated by other agencies was a source of unnecessary delay while importing products for farmers’ use. It was a big advocacy win when the CS Ministry of Trade gazetted the exemptions of suchproducts from the requirement.

iii. Revalidation guidelines

As practice in other jurisdictions, one way of reducing the build-up of obsolete stock is to test the aged pest control products for their validity before being declared obsolete. Discussions on developing a guideline in revalidation for aged PCPs has been ongoing between PCPB and AAK for some time now. A draft guideline was developed based on international guidelines and practices. We strongly believe that the discussions will be fruitful.

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

iv. The negative effect of EU policy change on pest control products registrations and export market access due to MRLs exceedance

a) More active ingredients to be put at limit of detection (LoD) in the EU

Based on the stringent and total overhaul on the mode of assessment of PCPs before approval in EU, most of the active ingredients MRLs have been put at Limit of Detection (L.o.D). Consequently, there has been an upsurge of noti�cation on the exceedance of MRLs on peas and beans. This has heightened o�cial control by exporting countries in EU which have increased sampling of peas and beans to 10%.Noting that EU remains an important market for Kenya’s horticulture (about 45%), the taskforce is currently discussing how the market can be protected even as we protect our pest control products registrations from being associated with non-compliance. AAK, PCPB, HCD, MOA, FPC, KFC and FPEAK are members of the taskforce. As a step to ensure compliance, HCD and KEPHIS were tasked jointly to audit companies with high interceptions due to exceedance of MRLs. AAK and PCPB are also working on creating awareness on MRLs and label recommendations with growers. MRLs sensitization to growers was successfully conducted with more than 60 growers sensitized on 25th November, 2020. The sensitization forums will be increased to monitor farmers’ behavioral change.Some of the active ingredients reported in the noti�cations are not available in Kenya but get into farms through porous borders. Dimethoate for example remains detected in French beans while ithas not been imported in Kenya for a long time.

b) Update on the negative publicity against Pest Control Products and the petition in parliament

Civil societies intensi�ed their lobbying to destabilize the available agricultural technologies and tools for farmers, to provide and support Kenya’s economy through exportproduce.

The industry continues to assure the general public on the safety of pest control products and advocates for policy makers to believe in the science while making policies.

The petition which was sent to the National Assembly in September 2019 by the Route to Food Initiative and sponsored by Hon. Gladys Boss Shollei seeks to ban over 260 Pest control products. The petition was forwarded to thedepartmental committee of health to

deliberate and report to the house for tabling.

Agrochemicals Association of Kenya made both oral and written submissions to the departmental committee, providing regulatory information and clari�cations on misleading information, outlining petition’s impact on food security, safety and Kenya’seconomy.

The report contains 17 recommendations some of which call for ban of the products has not been scheduled for discussions. AAK is vigilant to monitor the situation and continues to proactively communicate with policy makers on the impact of any negativedecision.

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

v. Crop grouping extrapolation guidelines

AAK and PCPB developed products for use in minor crops and reduce data requirements for crops which fall in similar groups. The crop grouping extrapolation guidelines for cereals, vegetable, herbs & spices were implemented, and a circular sent to the industry foradoption.

A follow up on the adoption rate of the guidelines to maximize the bene�t by member companies at PCPB was found to be very low. The extrapolation guidelines are meant to reduce data requirement on e�cacy trial and residue data for approval during label extension. For example, e�cacy trials may not be carried out for all but only an indicator crop. This reduces the cost and time for conducting the trial. The same will also ensure that products for minor crop and pests will be available to farmers.

vii. Emerging pests

Since December, 2019, the control of the locust invasions has been intensi�ed through ground and aerial spraying. The pests still cross over to Kenya from Ethiopia and Somalia, there are cases of �rst-generation hoppers hatched within the country that matured and even started copulating and laying eggs. The Spray service providers and National Youth Service personnel have been key to pesticide application at community level. Their role in reducing exposure to pesticides by farmers and providing environmental mitigation (ensuring proper disposal of pesticide containers) has been critical.

Kenya’s control of the locusts is largely undertaken by FAO with government support, as our members are also making key contributions. Bayer Crop Science donated 120,000 litres of ULV based deltamethrin products to Kenya and another 50,000 litres to Uganda, which is valued at 95 Million Kenya shillings. This is a clear demonstration of Public Private Partnership in the �ght against locustinvasion.

vi. VAT on pesticides

As per the Finance Act, 2019, agricultural pest control products were zero-rated after AAK interventions through various submissions and lobbying. Being an annual process, AAK ensured that the zero-rated status of products is retained through submissions towards Finance Act, 2020. The submission included justi�cations for the need to also zero-rate pest control products for use in public health which was not zero-rated as per Finance Act, 2019 and 2020. AAK will not relent to push for zero-rating of the products used for controlof public health pests.

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However, the invasion has since spread through many counties ravaging vegetation and food crops while causing a big threat to food security. According to FAO’s report of 2020, the locust situation in East Africa remains extremely alarming and represents an unprecedented threat to food security and livelihoods. The Fall Army Worm in maize and Tutaabsoluta in tomatoes are also causing huge losses to famers in Kenya.AAK handed over 120, 000 Litres of Deltamethrin product

from Bayer to the Governments of Kenya to assist in the fight of locust invasion in the country

viii. The annual CropLife Africa & Middle East regional forums affected by Covid-19

The Year 2020 was extraordinary and presented a new normal. It has been a routine for CLAME to organize forums for national associations in Africa so as to dialogue on regulatory and stewardship matters across di�erent African regions.

However, regional forums had to be organized through webinars to deliberate on challenges including HHPs, EU policy changes and non-compliance to MRLs, activism andthe di�culties posed by the covid-19 pandemic.

Worldwide, COVID 19 has brought with it many challenges and opportuni�es for the management of pest control products. With food systems disrupted especially at cri�cal �mes of produc�on, many countries, including those in the Africa Middle East region have had to declare all services contribu�ng to food produc�on and distribu�on in locali�es and among na�ons essen�al.

Countries have had varied experiences for the crop protec�on sector. We asked them what topics have been cri�cal during this �me and the feedback was that the three priority issues are registra�on of crop protec�on products, digitaliza�on and Maximum Residue Limits.

This virtual regional regulatory forum is geared towards sharing country experiences in these three areas and forging the way ahead in the new normal. You will hear from policy makers, regulators, farmers and industry leaders among other stakeholdersduring the 3 panel discussions.

Panel 1: Transforming regulatory processes for pest control products through

lessons from the Covid-19 new normal.

Panel 2: MRLs, local produce and external market access: Challenges and

Panel 3:

AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

4.0 ANTI-COUNTERFEIT ACTIVITIES

4.1 Virtual accreditation of Member Companies Staff

Accreditation of member’s company sta�s is one of the strategies by the industry, set to ensure that Know Your Customer (KYC) proce-dures are put in place to reduce the trade in counterfeits from within. The sta� are taken through a seminar on the code of conduct and are issued with an identi�cation card to con�rm they work for the Member Company and are a signatory to the code of conduct.

Due to the spread of COVID-19, AAK organized a virtual accreditation webinar for member companies which took place in December 2020. At least 113 sta�s from 4 member companies

(Orbit Agro Chemical Industries Ltd (OACIL), Oak Medica, Twiga Chemical Industries and Kenagro Suppliers Ltd) participated in the seminar.

Earlier in the year, sta� from CKL Africa and East Africa Business Company Ltd (EABCL) had undertaken the seminar.

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

The Association in partnership with the Kenya Markets Trust, commissioned a survey to determine the levels of counterfeits in the Pest Control Products within Kenya. This helps in identifying the levels of counterfeiting environment in the country.

The study by IDC Consulting Ltd commenced in August, 2020 and the results are expected in March 2021. Members will be updated on the �ndings in a stakeholder workshop.

4.2 Counterfeit surveying

IMPORT ANALYSIS 2015- 2020

est Control Products valued at FOB Kes 14.98 billion were imported in 2020 compared to Kes 11.4 billion same period last year. This indicates a false growth of 32 % if we compare its YoY basis. Considering that we had a slack in 2019 that resulted into a decline of about 13%, last year results show that the industry recovered from 2019 shocks as we further registered a growth of 14% compared to 2018 in the same period.

This was possibly driven by the good weather witnessed for a better part of the year in 2020, a stable environment that made the industry optimistic throughout 2020, the emergence of the locust invasion opportunity and panic purchases associated with the supply chain risks during the pandemic.

There is a proportionate increase in value in each of the categories; herbicide, fungicide and insecticide. The increase in the herbicide and fungicide categories is attributed to a general good year in 2020 wet seasons where farmers had to control weeds and diseases during the year. Insecticides recorded a 63% growth. While we agree that 2019 may not be a good year to compare with, this seems to have been driven by the 2020 locust invasion as well as good weather.

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IMPORT ANALYSIS 2015- 2020

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

PESTICIDE YEARLY TOTALS IMPORT VALUE (KSH)

Value (Ksh)(B)

20202019

2018201720162015

20202019

2018201720162015

20202019

2018201720162015

** It is important to note that most members did not declare the insecticides imported to be either for use in public health or for agricultural pest control. This led to the Kentrade System lumping up all the insecticides.

Billion (M) Million

Category 2015 2016 2017 2018 2019 2020

%Growth 2020

Herbicide 1,827,290,917 1,885,628,613 2,317,371,430.65 2,669,587,397.73 2618551347 3,609,545,392.71 Insec�cide 2,899,850,352 3,322,769,646 4,710,399,459.84 4,758,543,709.56 3162681567 5,186,778,504.17 Fungicide 2,715,073,763 4,216,134,573 3,352,448,250.77 4,157,521,076.13 3650582669 4,923,837,538.32 Adjuvant 0 176,619,790 121,348,967.64 243,158,208.34 145484862 117,276,980.78 Mi�cide 254,320,800 151,672,278 180,412,924.81 265,787,776.40 439926305 311,813,116.74 Nema�cide 124,489,106 159,604,830 224,930,700.98 143,076,113.20 90139254 73,334,073.48 Roden�cide 0 28,945,285 33,702,486.56 44,681,452.82 24829006 57,566,410.94

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

Plant Growth regulators

122181982 85,269,225.70

Public Health Insec�cide

759757421** **

Biocides 96906085

Wood preserva�ves

139549114 179,851,377.84

Technical grade material

142889003 434,476,077.70

Bactericide

3,111,995.37

TOTAL 8,647,727,272 11,471,739,874 12,716,159,414.49 13,123,517,671.36 11,393,478,615 14,982,860,693.74 31.5%

117M

145M

243M

121M

176M

0

311M

439M

265M

180M

151M

254M

73M

90M

143M

224M

159M

124M

57M

24M

44M

33M

28M

0

481M

291M

51M

359M

3.6B 5.2B 4.9B

3.7B

4.2B

3.4B

4.2B

2.7B

3.2B

4.8B

4.7B

3.3B

2.9B

2.6B

1.9B

1.8B

2.3B

2.7B

Herbicide Insecticide Fungicide

Adjuvant Miticide Nematicide

Rodenticide Others

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

AAK’S ACHIEVEMENTS 2020

● The guidelines have been approved for use.● Reduced costs and �me of efficacy/residue studies.

● Stakeholder Consulta�on Conducted in various coun�es● Next Step: - incorpora�on of comments into the bill and regula�ons - Na�onal valida�on

● More than 60 Growers sensi�zed on 25th November, 2020

● AAK made wri�en submission as interested party.● Opportunity to make oral submission was granted on 4th August 2020

REGULATORY POLICY AND STANDARDS FOCUS AREAS

PRODUCT STEWARDSHIP FOCUS AREAS

Crop grouping extrapola�on guideline for cereals, vegetable, herbs & spices

The Journey of nega�ve publicity on Pest Control Products (PCPs)

MRLS sensi�za�on to growers

Status of PCPB Bill & regula�ons

Policy issues

• PVoC - Exemp�on of Pest Control Products (PCPS), veterinary medicines, and seeds from the requirements of PVoC.• VAT - Agricultural PCPs retained a zero-rated status; Advocacy and lobbying for zero ra�ng of insec�cides for use in public health is s�ll is ongoing.• EPR - Organized an awareness crea�on webinar for members on EPR regula�ons; • Forma�on of a Producer Responsibility Organiza�on (PRO) to manage industry waste is ongoing

Dissemina�on of responsible pes�cide use messages and Trainings to stakeholders

• 6 Field days held with NIB in Baringo County- 307 farmers trained.• 5 farmer trainings where 420 farmers and Technical assistants

of exporter companies were trained on RU of pes�cides to avoid residues in 2020.

• Par�cipated in the Makueni County Pest Free Area farmers exhibi�on in 2020.

• Trained 21 farmers drawn from the potato value chain in Kuresoi and 27 agronomist on RU and clean supply

chains.

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

PRODUCT STEWARDSHIP FOCUS AREAS

Dissemina�on of responsible pes�cide use messages and Trainings to stakeholders

• Trained 26 SSPs in Nyandarua County. Partnership with PCPB and Danish Embassy.

• Facilitated the training of 109 SSPs from Makueni on the establishment of a Pest Free Area partnership with KCDMS

• Equipped 392 SSPs with full PPEs at a cost of Kshs 2.2 M (USD 20,370)

• Linked 392 SSP’s to 84 agro-dealers in 5 Coun�es• 1 full session dedicated to resistance management

was undertaken during a stakeholders training held at PCPB.

War against counterfeit products

• 239 farmers sensi�zed on figh�ng counterfeits in Meru County• Conducted 1 sensi�za�on seminar in Siaya County for the

county’s Agrodealers Associa�on• Conducted an online accredita�on training for 6 member

Companies with an a�endance of 113 par�cipants. (EABCL, Coopers, Kenagro, Twiga, Oak Medica and Orbit

Chemicals). • Kenya Markets Trust (KMT) Provided support and

coordina�on to IDC for engagement with industry and stakeholders for the study on counterfeits in

Kenya. • Sent 26 unique messages on RU and

An�-Counterfei�ng to 13,571 farmers using the bulk SMS pla�orm.

Obsolete waste management

• Safeguarded and disposed of 26 Tons of obsolete pes�cides held at Kenya Seed Co stores in Nakuru and Trans Nzoia and 1 Ton of

Empty Pes�cide Containers in Molo, Kiambu, Kirinyaga, Nyeri, Makueni and Embu.

• Iden�fied over 10 Tons of obsolete stocks held by the Na�onal Irriga�on Authority in Ahero and Baringo

stores.

• Equipped the PIC to filter non-poison-related cases and trained 5 staff (AAK and KNH) on the new

system that was installed.

To streamline opera�ons of the Poison Informa�on Centre

AAK’S ACHIEVEMENTS 2020

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

INSTITUTIONAL DEVELOPMENT FOCUS AREAS

Annual General Mee�ng held on 23rd October 2020 During COVID-19

● The Associa�on held its first Hybrid AGM as per the Registrar’s of Socie�es guidelines

● The Cons�tu�on of the associa�on amended to include future virtual Special/Annual General mee�ngs

Safeguarding the agriculture industry despite theCOVID-19 – Pandemic (Ease of Doing Business)

● The industry members were given badges and car s�ckers to facilitate their movement so as to supply PCPs to ensure food

security was achieved.● AAK donated 2 computers to enable online submission of

dossier submission which is currently ongoing● Covid19 Resilience and Recovery program by AAK and

its partners: This program is aimed at suppor�ng businesses affected by Covid -19, in form of giving

interest-free and non-collateral micro-loans of up to Kshs.500, 000.

Membership Development

● Despite the pandemic, AAK increased its full membership by 5 (Jubaili, Pestma�c, Jojemi Agriventure, Transglobal, Fer�lizer

Associa�on of Kenya (FAK).● Veterinary Inputs Supplier Associa�on of Kenya (VISAK)

also a�racted 30 members from the animal health industry.

VISAK is affiliated to AAK and came into existence on 16 August 2019.

Outreach programs to the public on the safety of Pest Control Products (PCPs) and Responsible Use of Pest Control Products through:

● Communica�on pla�orms - Content developed to pass the messages with the theme #EveryCropCounts on all our social

media pla�orms, in addi�on to sending 13571 Short Messages (SMS) to farmers on Responsible Use (RU) of Pest

Control Products.● 13 Op-Eds published in our local dailies, radio

interviews (11), at least 4 TV interviews; 2 media trainings, press briefings, etc.

● The third phase of the tree plan�ng exercise took place on 6th November 2020

● AAK planted 21 acres of the degraded areas of the forest.

•A total of 56 acres has been reached so far out of the targeted 100 acres.

● Agrochemicals Associa�on of Kenya (AAK) handed over 120, 000 Litres of Deltamethrin product from

Bayer to the Governments of Kenya to assist in the fight of locust invasion in the country

Fight against Locust – Public and Private Partnership

AAK’S ACHIEVEMENTS 2020

Tree plan�ng -Mau forest in Likia(Corporate Social Responsibility)

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

AAK’S Membership List 2020

COMPANY ADDRESS TELEPHONE MEMBER NO.

FULL MEMBERS

1 AGRICHEM AFRICA LIMITED 49430 00100, NBI 0733806200/0727531010-Direct No. 0722610779 AAK/339

2 AGRISCOPE (AFRICA) LTD 39647-00623 NBI 254206652101/407222077747 AAK/331

3 AMIRAN KENYA LTD 30327 ,00100, NBI 6824840-6/6907000/0719095000 AAK/219

4 ARYSTA LIFE SCIENCE KENYA LIMITED 30335-00100 NBI 0723 215722; 254717432174 AAK/328

5 BIMEDA LTD 30620-00100 NBI 6537622-6; 0733634570 AAK/365

6 BASF EAST AFRICA LTD 24271-00100 4443454/5/6; : +254 20 4443 454; : AAK/220

7 BAYER E. A. LTD 30321, 00100-NBI AAK/128

8 BELL INDUSTRIES LTD. 18603, NBI (+254)-20-6535828/9, 20-2368703, 0733-764562, 0728-171663 AAK/211

9 BIOMEDICA LABORATORIES LTD 66627, 00800 NBI 2018540,020 3518224,0722134798 AAK/341

10 BOTACHEM ENTERPRISES LTD 66934-00200 0722 499 440 AAK/405

11 CHEMRAW E.A. LTD 47358-00100 NB

020 2300038/9,0736543460/0719297328/0714166530 AAK/204

12 CKL AFRICA LTD 40596 00100, NBI 0204206000; 0202464852-3; 0722209840; 0734-330044 AAK/133

13 CROPTECH KENYA LTD 137-00618 0722 703 911 AAK/406

14 DERA CHEMICAL INDUSTRIES 45145 00100, NBI 0771-755570; 0721-441004; 0202677392/020-554699 AAK/142

15 DDP AGROSCIENCES KENYA LTD 2170, 00606 NBI 0709142000; 0714714506;+254 722-507436 AAK/380

16 EAST AFRICAN BUSINESS CO. 29024-00100, NBI 0202403391, 0736896266,0704-300391 AAK/389

17 ELGON KENYA LTD 46826, 00100, NBI 6534410/2399997/0722203089 AAK/232

18 EXPORT TRADING CO. INPUTS KENYA LTD 57661, 00200 NBI 202660880/1/2 - 0722864205 AAK/382

19 GREENLIFE CROP PROTECTION AFRICA LTD 24942, 00100 NBI 0722 563698 AAK/361

20 FMC KENYA BRANCH 254559, 00100 NBI 254 205154243/41 AAK 403

21 FEDO AGENCIES LTD 1977, 00200 NBI 825461/825263; 0720837271; 020 – 2305464 AAK/307

22 HANGZHOU AGROCHEMICAL INDUSTRIES 17121-0020100 718290745 AAK/399

23 HIGHCHEM MARKETING LIMITED, ESSENTIALS DIVISION 30467,00100 NBI 254 20 530774/783/557744; 0722-205174 AAK/327

24 FLAMINGO HORTICULTURE LTD 1927,20117 NVS 254 50 20 20 859/ 21 167 AAK/266

25 IMPACT CHEMICALS 3977,00200 NBI 254 722 824 725; 254 733 585 334 AAK/397

Appendices

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

23 HIGHCHEM MARKETING LIMITED, ESSENTIALS DIVISION 30467,00100 NBI 254 20 530774/783/557744; 0722-205174 AAK/327

24 FLAMINGO HORTICULTURE LTD 1927,20117 NVS 254 50 20 20 859/ 21 167 AAK/266

25 IMPACT CHEMICALS 3977,00200 NBI 254 722 824 725; 254 733 585 334 AAK/397

26 ISAGRO AGROSOLUTIONS KENYA LIMITED 2087-00606 0720 437 847 AAK/407

27 JOJEMI AGRIVENTURES LIMITED 953-00600 0710-636403 AAK/411

28 JUANCO SPS LTD 20529, 00200, NBI 2088754-6 2048774; 0722 207805 AAK/273

29 JUBAILI AGROTEC LTD 980-00100 NBI 0748-813677 AAK/410

30 KAPI LTD 252-20100 NKU 051-2217134/2217228; : 0726 114 140 / 0737 127853 AAK/227

31 KENAGRO SUPPLIERS LTD 12775, 00400 NBI 0725-538297 AAK/391

32 KOPPERT BIOLOGICAL SYSTEMS 41852, NBI 4453780,+254 731 202191,0723144690 AAK/362

33 LACHLAN (K) LTD 49470,00100 NBI 0202073912/2073913/0722209474/0733209474 AAK/312

34 LAIBUTA CHEMICALS LTD 10979,00400 NBI 242637 AAK/342

35 MURPHY CHEMICALS E.A. LTD 20495, 00200,NBI 0722570768, 0733610860, 0202017992 AAK/108

36 NORDOX AS (K) LTD 23584, 00100, NBI 254-739334355 AAK/390

37 NORBROOK KENYA LTD 1287-00606 NBI 2019457/8, 0722 200804, 0734514160 AAK/336

38 OAK MEDICA LTD 17698,00100 NBI 0771-146-664/6 0202399514 AAK/386

39 OSHO CHEMICAL INDUSTRIES LTD 49916, 00100, NBI (+254)0711045000, 0732167000, 020-3912000 AAK/275

40 ORBIT AGRO CHEMICAL INDUSTRIES LTD 48870, NBI 821648 AAK/121

41 ORGANIX LTD 14494,00800-westl : +254 20 356 6241/2 / 374 1482; : +254 720 937535 / 735 712090/0736190951 AAK/281

42 PESTGON LTD 1704-Kitale 054-30767, 0722644229,0734647666 AAK/367

43 PESTMATIC LIMITED 27588-00506 NBI 0737-451415 AAK/409

44 RENTOKIL INITIAL KENYA LTD 44360, 00100,NBI 530228/552300;0703 055100 AAK/103

45 ROCKEM LIMITED 47090, 00100-NRB 343472 AAK/314

46 ROTAM SUB-SAHARAN AFRICA 8190,00100, NBI 3004848/2727068;0710 558745 AAK/345

47 SINERIA KENYA LTD 79777, 00200 NBI 720848255 AAK/357

48 SYNGENTA E. A. LTD 30393, 00100, NBI

+254733622778 ; +254722205117; +254703018000 /+254703019000; 2714827; 2714836 AAK/226

49 TOPSERVE E.A. LTD 47341-00100 NBI 0722528883; 2496326/3746402/3/6 AAK/329

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49 TOPSERVE E.A. LTD 47341-00100 NBI 0722528883; 2496326/3746402/3/6 AAK/329

50 TROPICAL FARM MANAGEMENT 18131-00100 Nairobi 20 2307420/2307421; 0733893906/0722674704 AAK/321

51 TRANSGLOBAL DISTRIBUTORS LTD 38932-00623 0738-241871 AAK/408

52 Twiga Chemical Industries 30172, 00100, NBI 020 3942000,3942300/3942000-Direct No. 0727952750 AAK/102

53 ULTRAVETIS E.A. LTD 44096,00100-NBI 6537665/6-2358205;0722 207888 AAK/311

54 WILLOWOOD AFRICA LTD 25475, 00603 NBI 0722 736 146 AAK/376

55 UNGA FARMCARE E.A 41788-00200 207603076 AAK/256

AFFILIATE MEMBERS

1 ELDORET PACKERS LTD 4058,ELD 053-61260/63005 AAK/334

2 HYGROTECH E.A. LTD 41446-00100 NBI 066-73286/73567/8/9 AAK/319

3 KENYA FARMERS ASSOCIATION LTD 35,NKU 051-2211615 AAK/237

4 LESSOS VET. SUPPLIES LTD 1080,ELD 053-2063051/0733610951; 0773878466 AAK/318

5 NEW DOWN TOWN LTD 61-10303 WANGURU 721,624,689 AAK/374

6 PAKSONS ENTERPRISES LTD 174, KERICHO 052-30187 AAK/375

7 VECTORCON PEST CONTROL & SUPPLIES LTD 85288, 80100 MSA 0733 419999; 0726419999 AAK/272

8 PEST MANAGEMENT ASSOCIATION OF KENYA 13809-00800 NBI 0710-447777; 0734-44777 AAK/401

9 FERTILIZER ASSOCIATION OF KENYA 44480-00100 NBI 020 4453701/2; 0733700831 AAK/404

10 VETERINARY INPUT SUPPLIERS ASSOCIATION OF KENYA 13809-00100

ASSOCIATE MEMBERS

1 SIPCAM E.A. LTD 47090, 00100-NRB 343472 AAK/320

2 ENVIRONMENTAL & COMBUSTION CONSULTANTS 72828,00200 NBI +254-020-556242, 254 20 2496323 AAK/340

3 KENYA AGRICULTURAL AND LIVESTOCK RESEARCH ORGANISATION 57811,00200 NBI 0722-206986; 0733-333223 AAK/402

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Statement of comprehensive income For the year ended 31st December 2020

2020

2019

Kshs

Kshs

Associa�on Income

Import levy 59,054,532

44,793,303 Subscrip�ons 4,930,000

5,070,000

Membership/Entrance 110,000

95,000 Accredita�on 9,500

12,500

Tree plan�ng 375,000

-

64,479,032

49,970,803

Other incomes

Interest income 2,104,870

1,772,823 PEMAK services 158,000

192,000

Miscellaneous income 54,795

267,273

2,317,665

2,232,096

Total income 66,796,697

52,202,899

Expenditure

Product stewardship 24,120,679

20,706,949 Stewardship & Partnership Ac�vi�es 7,309,536

8,357,418

Regulatory, Policy and Standards Stewardship Ac�vi�es 612,191

1,036,125 Ins�tu�onal development Stewardship Support 17,234,390

18,347,420

An�-counterfeit Stewardship Ac�vi�es 358,055

519,327 Risk and Audit Ac�vi�es 792,820

454,000

Other associa�ons 308,000

602,540

50,735,671

50,023,779

Other expenses Impairment of investment -

1,311,150

Loss on disposal of asset -

1,745,513 Total expenses 50,735,671

53,080,442

Surplus before tax 16,061,026

(877,543)

Tax expense 552,528

1,017,563

Agrochemicals Associa�on of KenyaStatement of comprehensive income

For the year ended 31st December 2020

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(Loss) / surplus from opera�ons 15,508,498

(1,895,106)

Designated projects

Grants received 3,775,800

14,308,690 Project expenses (7,923,764)

(9,827,504)

(4,147,964)

4,481,186

Surplus for the year 11,360,534

2,586,080

Agrochemicals Associa�on of Kenya Statement of financial posi�on

As at 31st December 2020

2020

2019

Kshs

Kshs

Assets

Non- current assets

Property and equipment 4,857,996

5,364,456 Intangible assets 207,083

77,879

5,065,079

5,442,335

Current assets

Accounts receivables 3,457,679

4,433,265 Financial assets 37,189,545

21,005,864

Cash and cash equivalents 14,745,354

15,979,010

55,392,578

41,418,139

Total assets 60,457,657

46,860,474

Reserves and liability

Revenue reserves 50,248,027

34,712,139

50,248,027

34,712,139

Agrochemicals Associa�on of KenyaStatement of financial posi�on

As at 31st December 2020

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Current liabili�es

Accounts payables 5,758,649

3,679,471 Current tax payable 343,639

213,558

Project designated funds 4,107,342

8,255,305 Total liabili�es 10,209,630

12,148,335

Total funds and liabili�es 60,457,657

46,860,474

1287-00606 NBI 2019457/8, 0722 200804, 0734514160 AAK/336

17698,00100 NBI 0771-146-664/6 0202399514 AAK/386

49916, 00100, NBI (+254)0711045000, 0732167000, 020-3912000 AAK/275

48870, NBI 821648 AAK/121

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

Joining AAK

The following is the process of becoming an Agrochemicals Associa�on of Kenya (AAK) member:

1. Determine the membership category that applies to your organiza�on

Read the Agrochemicals Associa�on of Kenya (AAK) cons�tu�on which states the types of membership categories available. Download the cons�tu�on from the link below:

AAK Cons�tu�on Final

2. Applica�on to Agrochemicals Associa�on of Kenya (AAK) for Membership

Fill-in The Agrochemicals Associa�on of Kenya (AAK) Membership forms by collec�ng them from the AAK office or downloading them from the link shown below.

AAK Membership Form

3. Review of Applica�on by Agrochemicals Associa�on of Kenya (AAK)

The Agrochemicals Associa�on of Kenya (AAK) secretariat reviews the documents presented by the applicant to ensure they are in order and properly submi�ed.

4. Circula�on of Applica�on to members

Once the documents have been reviewed the applicant’s details are forwarded to all members for approval and input to determine if the applicant will be approved.

5. If No Objec�on From The Members – Applicant is invited for interview

If No objec�on is received from the members the applicant is invited for an interview at the Agrochemicals Associa�on of Kenya (AAK) offices.

6. Recommenda�on for Applica�on is forwarded to Execu�ve Commi�ee

If the interview is successful the applica�on for membership is forwarded to the Execu�ve commi�ee of the Agrochemicals Associa�on of Kenya (AAK) for final approval

7. Applicant is informed of outcome of the applica�on

The applicant is informed of the outcome of the applica�on to join Agrochemicals Associa�on of Kenya (AAK) whether the applica�on was successful or not.

Benefits of Joining AAK Membership

• The Associa�on has developed the AAK logo as a mark of quality and those having the AAK logo on their products are taken to be supplying quality products.

• Interna�onal Code of Conduct – members follow the code of conduct on distribu�on and sale of pes�cides which the industry uses for self- regula�on. Through the code, AAK highlights the best prac�ces of member companies, responsible use and implementa�on of sustainable development principles for the industry.

Joining AAK

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AGROCHEMICALS ASSOCIATION OF KENYA/CROPLIFE KENYA ANNUAL REPORT 2020

• Knowledge sharing and networking – this is achieved through events organized for members including luncheons, annual dinners, breakfast mee�ngs, where members come together to share informa�on, ideas, and opportuni�es to interact with members from different companies in the industry.

• Commi�ees and taskforces – members have the opportunity to par�cipate in the Associa�on’s commi�ees, task forces and working groups, where they can receive the latest informa�on on areas of interest, have the opportunity to suggest new topics and assist in dra�ing the common posi�ons adopted by the Associa�on.

• AAK is also a member of CropLife Interna�onal giving an opportunity to local members to be part of the Interna�onal Agrochemical Industry.

• Issues of management and policy guidance including Economic impacts, government regula�ons and societal expecta�ons, AAK helps companies follow developments and form appropriate responses.

• The Agrochemicals Associa�on of Kenya acts as a forum where members discuss and agree on issues that affect the industry. The issues once agreed upon are regularly presented to the government for ac�ons.

• Through the medium of the Execu�ve Commi�ee the Associa�on provides an agency for liaison with government and others on all ma�ers of mutual interest.

• The Associa�on directs represents the interests of the members at the Pest Control Product Board.

• The Associa�on protects and furthers the common interests of its members where these are concerned with the manufacturer, formula�on, importa�on and distribu�on of pes�cides.

• It represents concerns of the industry to the government for development of legisla�on and regula�ons.

• Training, which is a core func�on of the Agrochemicals Associa�on of Kenya helps in responsible use of pes�cides that leads to:

o Safe food

o Safe environment

o Export of produce

o Hor�cultural crop growers mee�ng the market standard for produce

• AAK helps in the development of the incinera�on facility to assist hor�cultural crops growers meet the export standards in Europe.

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P.O. Box 1380900800-Nairobi

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

Email: [email protected]/Protect to Provide

AGROCHEMICALS ASSOCIATION OF KENYA

@agrochem.croplifekenya

@agrochem.croplifekenya

@CropLifeKenya

@agrochemcroplifekenya