Kenya Meat Commission Faces Scrutiny Over Financial mismanagement Issues
The National Assembly’s Public Investments Committee on Social Services, Administration, and Agriculture, in a session chaired by Nandi Hills MP Hon. Bernard Kitur, grilled the Kenya Meat Commission (KMC) over irregularities spanning nearly a decade. The meeting, held today, was attended by KMC Managing Commissioner Major General Jettani K. Gulla, who sought to explain the failures and measures being taken to revive the state-owned entity.
At the heart of the inquiry were financial statements dating from 2012/2013 to 2020/2021, which revealed a pattern of delayed submissions, poor financial performance, and governance issues. According to the Auditor General’s report, the financial statements for the year ending June 30, 2013, were submitted on November 14, 2013, violating the Public Finance Management Act and the Public Audit Act, which mandate that financial reports be submitted within three months of the financial year’s end.
“Hon. Chairman, it is true that the financial statements were submitted late,” Major General Gulla admitted, attributing the delay to significant changes in top management during the period. He reassured the committee that KMC had since aligned its processes with the required timelines.
The financial performance of the commission was another major concern. In the 2012/2013 financial year, KMC posted a loss of Kshs. 300 million, a significant increase from the previous year’s Kshs. 41 million. Commissioner Gulla explained that the plant was operating below 30% capacity, leading to inefficiencies and high operational costs. However, he stated that a new business strategy had been implemented to reverse the trend. “The Commission has since reversed the loss-making trend,” he noted.
The committee also raised concerns about KMC’s inability to clear financial obligations, including trade and livestock creditors, and unpaid salaries. Hon. Kitur emphasized that this underscored KMC’s reliance on government support for survival. In response, Major General Gulla assured the panel that KMC had revamped its credit policy and cleared most of its outstanding debts.
In closing, Hon. Kosgei (Nominated) expressed scepticism about the commission’s past governance, stating, “There was a problem with the corporate governance of the Kenya Meat Commission. The intervention by the military has improved things, but it’s still a work in progress.”
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