THE AFRICAN BUSINESS FORTUNE MAGAZINE ISSUE #006 The African Business Fortune Magazine | Page 39

THE AFRICAN BUSINESS FORTUNE - ECONOMY

critical for beef industry
lowing an advertisement of the Halal controversy, which the government said would
become a subsidiary of the firm – that year
KMC posted a loss of $200,000 before losses
doubled to $400,000.
The following year the firm’s miseries
peaked when a dispute with butchers over
the pricing of beef led to a month’s-long
standoff and later that year hundreds of
its employees were sent home parking and
purged 27 senior managers as cost-cutting
measures.
“My Government has re-possessed the
assets of the Kenya Meat Commission to
address this crucial market outlet. KMC’s
revival will not only contribute to Kenya’s
exports, but also provide employment and
enhance the incomes of livestock farmers,”
was retired President Kibaki’s message to
Kenyans when he presided over Kenyatta
Day celebrations in October, 2005.
The meat firm began to collapse ten years
after it was revived, a move that prompted
Kibaki’s administration in March of 2013
to order a probe into the excess loss of
Sh1.2billion, including Sh600million set
aside for its revival.
Kenya Meat Commission (KMC) and Kenya
Cooperative Creameries (KCC) were Kibaki’s
flagship projects soon after taking power in
2002 on a National Rainbow Coalition ticket
–and indeed the economist lived up to his
pledge and facilitated the two state-owned
firms a combined Sh800million bail-out to
revive the firms.
Under President Uhuru Kenyatta’s regime,
the commission requested for a bailout of
Sh600million in the current financial year to
upgrade its outdated machines and aid operations.
The meat company in its 2015-2020 turnaround strategy wants to be allowed to supply all government institutions including
military and police bases with canned beef
to improve exports revenues, as well be allocated further funding to mend its dead
machines
“We have not sold a single kilo to any government institution, we are hopeful deal will
be ratified between us and the government
to supply our KDF troops in Somalia and
other public organisations like universities,”
said Kores.
It is not done and dusted as the Parastatal
is hopeful a long-lasting solution and recommendations will reached at the upcoming retreat to resolve the company’s troubles.

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