After years of mismanagement and loss-making, the Kenya Meat Commission (KMC), has been gradually decreasing its dependence on government funding, with 70 per cent of its resources now being internally generated.
The company which was placed under the management of the Kenya Defence Forces in 2020 is offering hope for livestock farmers as it plans to expand its product range by introducing sausages to Kenyan supermarkets and further diversifying its revenue streams through exports, franchise shops, and partnerships within the hotel and tourism industry.
Positive Progress
During a recent inspection by the National Assembly Committee on Agriculture and Livestock of Kenya Meat Commission’s (KMC) plant in Kibarani, Mombasa, committee member Hon. Monica Marubu, MP of Lamu County questioned KMC’s commercial viability and the progress made in reducing reliance on government funding.
In response, KMC Managing Commissioner Brigadier J.N. Githaiga informed the committee members that KMC has been weaning itself off the government tit, as it now generates 70 per cent of its revenue internally.
The refurbished Mombasa meat processing plant now handles 250 large stock and 500 small stock per day, with chilling facilities capable of accommodating 1750 animals within ideal temperature ranges.
Market Expansion and Efficiency
KMC’s strategic plan to enhance operations includes entering the local sausage market. Brigadier J.N. Githaiga highlighted the company’s unmatched efficiency in meat processing, emphasizing its capacity to handle high volumes while meeting consumer preferences. These factors position KMC as a potential contributor to Kenya’s economy.
Challenges to Address
However, despite its positive trajectory, KMC faces a number of challenges that need to be addressed for sustained commercial viability.
The company grapples with aging machinery and equipment, negatively impacting its productivity and efficiency.
Furthermore, drought conditions have affected the supply of animals for processing, and delayed payments from government agencies have created cash flow challenges. Additionally, land disputes and limitations in international certification have hindered the exploration of untapped export markets.
Resolving Challenges and Progress
KMC has made substantial progress in resolving the 74 court cases inherited during its revival. With only 8 cases remaining, exchequer funds have helped clear financial debts and litigation.
Strategic investments, improved operations, and a focus on quality products are key components of KMC’s plan to achieve commercial viability and expand its presence in both domestic and international markets.
Conclusion
As the oldest and most experienced meat processors in Kenya and East Africa, the Kenya Meat Commission (KMC) holds significant potential for contributing to the country’s economy.
With a reduced reliance on government funding and plans to enter the local sausage market, KMC aims to establish a strong foothold in the meat industry.
Resolving challenges such as aging machinery and equipment, supply constraints, and delayed payments will be crucial for sustained growth. Through strategic investments and improved operations, KMC seeks to solidify its position in domestic and international markets.