Kenya Meat Commission plant in Athi River. KMC is in a financial crisis due to debts amounting to Sh330 million. Photo/FILE
By Mathias Ringa
In Summary
- 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.
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