State to spend Sh80m on KMC upgrade before sale

The State is set to pump Sh80 million into upgrading Kenya Meat Commission (KMC) factory in the next financial year starting July even as it plans to sell it to a strategic investor.

The Treasury has for the second year in a row allocated Sh80 million for the refurbishment of the Athi River-based meat processor.

The State Department for Livestock spent Sh80 million out of Sh190 million that Parliament has allocated in the current financial year in the factory upgrade.

Last year, the government announced that it would commence the process of selling KMC following the formation of a task force to come up with a plan for privatisation.

The allocation of Sh80 million for modernisation has been made in the budget despite then Agriculture secretary Mwangi Kiunjuri announcing that the State would no longer pump more money into a loss-making entity.

Mr Kiunjuri in March 2019 said a lot of money had been invested in the firm with the hope of reviving its ailing plant but that there is little to show for it.

KMC plant is among the list of 26 other government parastatals that have been earmarked by the Privatisation Commission for sale to strategic investors.

The government said privatisation of KMC would make it economically viable and boost export of animal products from Kenya to other countries.

In 2016, the government allocated Sh650 million for laying off of staff and an upgrade of the Athi-River based abattoir.

The money, made available through a supplementary budget was to be spent on improving the infrastructure at the ailing parastatal. The government intended to carry out modernisation of the plant, which is underperforming due to old machinery.