The National Assembly Defence, Intelligence and Foreign Relations Committee has called on the Kenya Meat Commission (KMC) to expedite efforts to secure an export processing license. This appeal was made during a visit to the KMC headquarters in Athi River, led by Committee Chair Nelson Koech, alongside other lawmakers.
During the visit, the Committee engaged with key members of KMC’s management team, including Managing Commissioner Maj. Gen. J.K. Gula, General Manager Production and Livestock Col. John Njuguna, and General Manager Commercial Services Lt. Col. Kinuthia. The Committee expressed strong support for KMC’s potential to significantly boost Kenya’s economy, particularly through generating income for pastoralist communities and enhancing the country’s food security.
However, lawmakers were concerned about the underutilized capacity of KMC’s main factory, which is capable of processing over 690 tonnes of meat and meat products but remains significantly below this potential. Committee member Memusi Kanchory questioned the delays in obtaining the export processing license, asking, “Why do you still not have an export processing license? Why has KMC not met the requirements?”
In response, Managing Commissioner Maj. Gen. Gula outlined the current hurdles, emphasizing the need for KMC to meet stringent international standards. He noted that securing the license is a priority but requires considerable investment in upgrading equipment and facilities, including regurgitation and packaging machinery, to meet ISO standards. He urged the Committee to advocate for additional funding, which is critical to achieving these upgrades and meeting export processing requirements.
“We need the support of this Committee to upgrade our equipment, especially the regurgitation and packaging machinery, to meet international standards,” stated Maj. Gen. Gula. He underscored that with the necessary upgrades, KMC would be well-positioned to tap into international markets, thereby increasing profitability and sustainability.
The Committee acknowledged the challenges facing KMC, including issues related to maintaining profitability and competitiveness. A significant factor contributing to these challenges is the aged plant and machinery, which results in frequent breakdowns, particularly in the refrigeration system, leading to unattained production targets and subsequent revenue losses. Moreover, cash flow and liquidity issues have also hampered KMC’s operations.
To bolster KMC’s profitability and market presence, the Committee urged the management to prioritize obtaining the export processing license, which would open doors to new markets and enhance revenue streams. This strategic shift could serve as a game-changer for the Commission, aligning it more closely with international standards and market expectations.
Another critical issue raised during the visit was the significant debt owed to KMC by various government agencies. The Committee expressed concern over delayed payments for meat products supplied to clients such as the Kenya Defence Forces, the Administrative Police, the National Youth Service, schools, hotels, and restaurants. Nelson Koech, the Committee Chair, questioned the measures being taken by KMC to address these delayed payments, emphasizing the need for aggressive debt recovery strategies.
“KMC should work to recover outstanding payments from government agencies and other debtors. Debts recovered can be used to expand your market share,” said Koech. He urged KMC to establish a clear plan for recovering these funds, which could be reinvested into operations and used to support the pursuit of the export processing license.
The visit underscored the potential of the Kenya Meat Commission as a vital player in Kenya’s agricultural sector and the broader economy. With the backing of the Defence Committee and a clear path toward securing the export processing license, KMC has the opportunity to not only enhance its operational efficiency but also significantly contribute to Kenya’s economic growth and food security.
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