The Auditor- General has painted a bleak future for the Kenya Meat Commission (KMC), saying its survival depends on support from the Treasury, creditors and other lenders.
Edward Ouko says in a new report that KMC made a loss of Sh316,664,883 in the year ended June 2014, depleting retained earnings to a negative balance of Sh450,103,027.
“The poor performance appears to have been caused by continued reduced proceeds from sales, which dropped from Sh1.1 billion to Sh331.4 million in the year under review,” Mr Ouko says in the KMC audit report tabled in Parliament by Majority leader Adan Duale.
Mr Ouko says the State agency’s financial statements reflect arrears of Sh109.6 million owed to livestock suppliers, Sh3.8 million allowances owed to the board and Sh91.7 million owed to staff for gratuity.
“As a result of inability to settle its financial obligations, it is apparent that the continued survival of the commission depends on support from the government, creditors and other lenders,” says the report.
The Athi River-based meat processor has outstanding government loans amounting to Sh300 million that were to be repaid starting June 30, 2010. However, to date, the commission has not settled either the principal installments or interest on the loans.
The auditor also raises the red flag over KMC’s land ownership, saying several prime properties have no title deeds.
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