Government Announces Sale of KMC to a Private Investor

The Kenya Meat Commission (KMC), a state-owned firm which needed a total of 822 million shillings to avert closure, is set for sale to a private investor by the Ministry of Agriculture.

The move was made in a bid to allow the government to look for more funds to bring it back to life.

According to Mwangi Kiunjuri, the Agriculture Cabinet Secretary, the government will no longer put more money into a company that is making losses.

Kiunjuri also added that the process of selling the entity will begin next week and a formation of a committee that will come up with a plan for privatization is underway.

According to the CS, the government has wasted a lot of money injected into the firm with the hopes of seeing it roar back to life but the firm has nothing to show for it.

RELATED State-Owned Sugar Millers in Trouble as Government says No to Capital Injection

“We are going to privatize Kenya Meat Commission. We are in the process and we are setting up a task force next week, which will comprise officials from the Privatisation Commission,” said Kiunjuri during a press briefing.

On his part, Harry Kimtai, the Livestock Principle Secretary noted that the decision to privatize KMC will make it economically viable far from boosting the export of animal products from Kenya to other countries.

“We have four international slaughterhouses and we are also building additional ones in four Counties. In total, we are going to have eight export slaughterhouses. KMC has had its fair share of challenges which might not be addressed in any other way than through privatization,” Kimtai said.

KMC, which is based in Athi River is now one among the list of 26 other government parastatals earmarked for privatization by the Privatisation Commission. These firms will be sold to private investors who will hopefully revive their operations for the sake of the economy.

READ Government to Sell 26 Companies to Supplement KES 579.9 Billion Budget Deficit