Companies

Ministry to decide fate of ailing KMC this week

The government is this week expected to make a decision on whether to upgrade obsolete machinery at the Kenya Meat Commission (KMC) factory or establish a new plant in Athi River. Agriculture secretary Felix Koskei said the tendering process had been undertaken and the valuation committee would announce its findings this week.

“The evaluation of the bids is going on. We asked bidders to submit proposals for both upgrade of the factory and bids for construction of a modern facility. We expect to get the findings this week to know whether to upgrade or get a totally new plant that is efficient,” he told the parliamentary Committee on Agriculture.

He said the ministry had hired the Kenya School of Government to undertake consultancy into the restructuring of the commission that will see the current 465 employees cut to between 150 and 200.

The committee, chaired by Mandera North MP Mohammed Noor invited Mr Koskei to brief MPs on the current status of the ailing KMC. The minister ruled out any possibility of privatising the factory at its present state saying investors would only be interested in the KMC land and not modernisation of the obsolete facility.

“We cannot do privatisation of the factory now. People will come in, sale the KMC land and opt out of privatisation. We need as government to revive the meat processor and make it solely an export facility before we invite private players in the running of the turned around company,” he said.

Mr Koskei said the Privatisation Commission had recommended its sale but could be done after the meat processor is turned around.

“We have managed to get Sh700 million in the current financial year which we intend to use to modernise the plant and staff rationalisation,” he said.

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