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President William Ruto has reverted the Kenya Meat Commission under the Ministry of Defence, months after he had placed it under the Ministry of Agriculture and Livestock Development.
In President Ruto’s Executive Order No.2 of 2023 released on November 2, the head of state returned the meat processing company under CS Aden Duale's docket.
KMC was initially transferred to the Ministry of Defence under the management of KDF by retired President Uhuru Kenyatta in 2020 in a move to revamp the meat processor.
At the time, Kenyatta explained that KDF was the biggest consumer of KMC products and has the capability to transform the organisation.
However, when President Ruto assumed power, he transferred KMC to the Ministry of Agriculture but retained KDF as the manager. The decision was acknowledged in Executive Order No.1 of 2023.
In his second executive order, Ruto has now reinstated KMC back to the Ministry of Defence. Additionally, the Ministry has also been mandated to contribute to the national food security agenda.
Since being placed under the management of KDF, KMC has strategically reduced its reliance on government funding, having achieved a significant milestone with 70% of its resources now generated internally.
The company is planning to enhance financial sustainability by expanding its revenue sources.
This includes venturing into exports, establishing franchise shops, and cultivating partnerships within the dynamic sectors of hotels and tourism.
Despite its positive trajectory, KMC is confronted with several challenges that demand attention to ensure sustained commercial viability.
The company grapples with the repercussions of aging machinery and equipment, negatively impacting both productivity and efficiency.
Furthermore, drought conditions have disrupted the supply of animals for processing, and delayed payments from government agencies have led to cash flow challenges.
Additionally, land disputes and constraints in international certification have impeded the exploration of untapped export markets.
As the oldest and most experienced meat processor in Kenya and the broader East African region, KMC possesses significant potential to bolster the country's economy.
To capitalize on this potential, the company is strategically focusing on addressing these challenges through targeted investments, operational improvements, and a commitment to delivering high-quality products.
This multifaceted approach aims to not only achieve commercial viability but also to expand KMC's footprint in both domestic and international markets.