KMC sets sights on fatter returns

• Meat processor hopes rising demand from Middle East and marketing systems will drive up income

After years of limping in losses, the Kenya Meat Commission is looking forward to a profitable year, based on increased demand from the Middle East and improved marketing systems.

The firm, which went under in 1992 but was revived in 2006, has been struggling, counting losses over the years.

According to managing commissioner Ibrahim Haji Isaak, who was appointed in January this year, revenue collection, which had dwindled, has steadily improved.

“By December last year, revenue collection had not gone beyond Sh89 million, but in January the company attained Sh120 million, Sh140 million in February, and Sh130 million last month. This is an indication that we are on the right path to attain our target of 20 per cent profit within the financial year ending June,” he said.

Livestock minister Mohammed Kuti, while announcing the appointment, tasked the management to turn the meat processor into a profit venture by mid this year or face the sack.

Speaking at the function in Athi River at KMC, ministry permanent secretary Kenneth Lusaka said, “KMC has not declared profits since its revival and suffered from poor management, ineffective strategies, failed sales-drive, and inefficient equipment.. With the strategic business plan in place, we hope that there will be a great improvement.”

Mr Lusaka said KMC has embraced modern technology after it launched its revised website. He said the technology would help check overhead expenditure and cut production costs by 10 per cent.

“The new KMC website will enable customers to place orders at their convenience. This is one of the steps towards employing technological tools to establish KMC as the preferred meat and meat products processor,” he said.

The PS urged the company to focus on market research to open more outlets and maintain the existing sale points.

“The marketing department should be proactive in forecasting the new markets and satisfying customers,” he said.

The Kenya Meat Commission had been without top officials since July last year after its board and managing commissioner were sacked for misuse of office and misappropriation of funds.

“We are targeting a profit of Sh64 million in the first half of this year,” Mr Kuti said.

He urged the company to work towards establishing prime livestock purchasing price to encourage farmers.

“Prime price will assure pastoralists of a suitable market for their products,” he said