Cash-Strapped KMC Transferred to Ministry of Defence
Kevin Namunwa  |  Sep 9, 2020

The government, through Agriculture Cabinet Secretary Peter Munya, has ordered the transfer of Kenya Meat Commission (KMC) to the Ministry of Defence.

The order is said to have come directly from President Uhuru Kenyatta. Agriculture CS directed Livestock Principal Secretary Harry Kimtai to facilitate the transfer.

The cash-strapped firm will now be run by the military in a move aimed at boosting its operations and fighting for its survival.

“Following the transfer of ministerial responsibility of the Kenya Meat Commission to the Ministry of Defence by the President, you are directed to facilitate a seamless transfer of Kenya Meat Commission to the Ministry of Defence,” CS Munya said in a memo dated September 7.

The meat processor has been operating below its capacity and is grappling with an unreliable supply of raw material and a worn-out plant. This slowed down its operations making it difficult to operate profitably.

“Ensure that you coordinate the entire exercise with the National Treasury and transfer the associated budgets at the next scheduled supplementary budgets,” Munya added in the memo he sent to the PS.

KMC slaughters 200 cattle per week, despite it having the capacity to process the same number of animals per day. In June, the government said it would inject Sh80 million into upgrading the KMC factory in the next financial year even as it planned to sell it to a strategic investor.

This was the second year in a row that the Treasury had allocated the amount for refurbishment of the Athi River-based meat processor.

The meat processor is among 26 parastatals earmarked for sale to strategic investors by the Privatisation Commission.