KMC eyes strategic investor to inject Sh5bn
The government is in talks with an Israel based firm with the hopes of having it pump five billion shillings into the revival of the Kenya Meat Commission (KMC).
According to the State Department of Livestock the government has just concluded a study on the revival of the KMC plant, which will require the strategic investor to inject a total of Sh5 billion.
Livestock Principal Secretary Andrew Tuimur told Citizen Digital the money would be split between modernizing the KMC plant and boosting working capital to diversify into new markets and launch new products.
“Out of this, Sh3.7 billion will be used to modernize the Athi River based facility, while remaining Sh3 billion will go towards the operational costs,” Mr Tuimur said in an interview.
The Israel based investor, whom the PS declined to reveal, is already conducting due diligence and a deal could be announced soon following the fulfillment of regulatory requirements.
With 66 years of operations under its belt, KMC has been struggling and has lost its market share to private slaughter houses in the region.
The planned injection of funds is aimed at restoring its lucrative meat exports to markets in Africa and the Middle East.
Trade and Industrialization Cabinet Secretary Adan Mohamed emphasized the need to modernize KMC in a bid to make it more competitive and enable the meat processor.
“Kenya Meat Commission at the moment doesn’t export any of the meat products, it is largely dealing with domestic products and there are quite a number of companies exporting livestock, and livestock related products….but on whole issue of export and international trade, one of the things we have done is to analyze the mix and the dynamics of our exports today,” Mr Mohammed said.
Due to mismanagement KMC has been shut down twice in recent times in 1999 and 2006 with every reopening pegged on hope to bring it back to its glory days.
For Citizen TV updates
Join @citizentvke Telegram channel
Video Of The Day: CBK\'s guidelines on how to return 1000 notes