Kenya Meat Commission in crisis over Sh300m debt
Kenya Meat Commission plant in Athi River. KMC is in a financial crisis due to debts amounting to Sh330 million. PHOTO/FILE
What you need to know:
- KMC is in the red due to years of mismanagement and misuse of funds
- Several senior officials will face disciplinary action over mismanagement of funds
- Sh750 million needed for revitalization of KMC
The Kenya Meat Commission (KMC) is in a financial crisis due to debts amounting to Sh330 million, Cabinet Secretary for Agriculture, Livestock and Fisheries Felix Koskei has said.
Mr Koskei said the parastatal was in the red due to years of mismanagement and misuse of funds.
The debts included statutory deductions and suppliers payments which have not been paid for years.
He said several senior officials will face disciplinary action over misappropriation of the parastatals’ funds.
The officials, he said, were still under investigation, and those found to have misused public funds would be prosecuted.
“The parastatal has undergone many years of mismanagement to an extent that it is operating below 20 per cent capacity,” he explained.
Mr Koskei said KMC factories were too old as they were commissioned in the 1960s.
He said the Commission embarked on collection of debts from customers three months ago but they only managed to collect Sh65 million.
He said at least Sh750 million was required to transform the parastatal.
He said Sh250 million will be used for restructuring of workers to improve efficiency.
REHABILITATION
Part of the funds, he added, will be used for the purchase of modern equipment and rehabilitation of the dilapidated factories.
Other funds, he said, are to be used for the settling of debts.
Mr Koskei said although the ministry pushed for the Treasury to allocate Sh750 million for the revitalization of KMC, only Sh50 million was earmarked to the parastatal.
“The Sh50 million which was allocated to the parastatal by the treasury is too little. More funds are required to help turn around the commission,” he said.
“I will hold talks with the treasury chiefs to enable them allocate Sh750 million for the transformation of KMC.”
He said with financial support, the commission could in a period of three months be able to generate profit.
Mr Koskei noted that beef products from KMC were in higher demand in the Middle East, Egypt, Angola and Ghana.
“There is ready market for our processed meat in the continent and even in the Middle East,” he said.
