The Treasury has increased the budget for the military-run KMC by Sh1.4 billion or 297.87 percent from Sh470 million to Sh1.87 billion in the current financial year.
The Kenya Defence Forces (KDF) took control of the cash-strapped meat firm in 2020 following an order from President Uhuru Kenyatta.
The transfer was meant to boost operations and ensure survival of the cash-strapped State-owned meat processor.
The Kenya Defence Forces will pump Sh1.4 billion to the Kenya Meat Commission (KMC) after MPs approved the expenditure in the Supplementary Budget.
The Treasury has increased the budget for the military-run KMC by Sh1.4 billion or 297.87 percent from Sh470 million to Sh1.87 billion in the current financial year.
The Kenya Defence Forces (KDF) took control of the cash-strapped meat firm in 2020 following an order from President Uhuru Kenyatta.
The transfer was meant to boost operations and ensure survival of the cash-strapped State-owned meat processor.
The State pumped Sh80 million into the KMC factory in the year to June 2020 and a similar amount last year.
In 2016, the government allocated Sh650 million for laying off of staff and an upgrade of the Athi-River based abattoir.
The fresh cash injection is contained in the Sh15.1 billion additional allocation to the KDF in the supplementary budget I for 2021/22.
“The increase is on account of enhanced security operation, Kenya National Shipyard, revitalisation of the Kenya Meat Commission and personnel emoluments,” the Defence ministry revealed in submission to Parliament.
“The Kenya Defence Forces accounts for the largest increase of Sh12.2 billion followed by the Kenya Meat Commission (KMC) whose budget has been increased by Sh1.4 billion (297.87 percent) and National Air Support Department whose budget has been adjusted upwards by Sh0.5 billion.”
The cash injection comes amid revelations by Auditor-General Nancy Gathungu that the KMC failed to collect rent arrears totalling Sh11.7 million from tenants occupying its property, despite a reform push that saw the military take over management.
The KDF last year asked the Privatisation Commission to remove KMC from the list of key parastatals earmarked for sale.
The Ministry of Defence wrote to the Privatisation Commission to exempt the meat processor from State-owned enterprises that Cabinet approved for sale.
