KMC plans to send home 150 employees in a restructuring plan aimed at cutting on the cost. PHOTO | FILE
The Kenya Meat Commission (KMC) will lay off 150 employees in a new turnaround plan aimed at cutting operation costs.
Managing commissioner Joseph Learamo said the firm would embark on the rationalisation of the staff through voluntary retirement where affected employees would be send home and compensated.
He said the current wage bill is unsustainable and that the firm spends a lot of money on recurrent expenditure despite operating below capacity.
“We are going to send home 150 employees in a restructuring plan aimed at cutting on the cost,” Mr Learamo said during a meeting with the parliamentary Committee on Agriculture at the Athi River plant.
Send off package
However, MPs stopped the commission from laying off employees until proper mechanism on their sendoff package has been put in place.
“I want to urge management not to rush in sending home workers without a proper plan on how they will compensate them,” said Ugunja MP Opiyo Wandayi, member of the committee.
Committee chairman Abdi Noor said KMC is seeking Sh1.8 million from the exchequer this year, but noted that they would return the ailing firm to profitability.
“The government will not just sink money in the plant without it showing the commitment on turnaround plan,” said Mr Noor, adding that the State had allocated the processor Sh800 million in the previous budget.
A parliamentary committee in January rejected the planned construction of a new meat processing plant by KMC that would have cost Sh1.1 billion.
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