KMC fails to pay farmers Sh380m

Angry farmers protest at the gates of the Kenya Meat Commission yesterday in Athi River. The farmers said the meat firm owes them Sh380 million and the payment has been delayed for the last three years. They want the government to intervene. [Peterson Githaiga, Standard]

A group of farmers yesterday stormed Kenya Meat Commission (KMC) offices demanding payments amounting to Sh380 million for supplying livestock.

The farmers said the payments have been delayed for three years and are calling on the Government to intervene.

They said despite pushing the KMC management, all they have received are empty promises.

One of the farmers, Rotet ole Lepet from Narok County, said the Athi River-based meat firm has been promising him money that is not forthcoming.

''All I get from the management are unfulfilled promises. I took loans to do this business and now the banks are on my neck," said Mr Lepet.

Graft and mismanagement 

He stressed he is perturbed that other farmers who supply KMC currently with livestock are paid on time, yet is payment dating three years ago is still on hold.

Lepet said that corruption and mismanagement has kept him from supplying livestock to the meat firm.

Abdi Ali Hunahuna, another farmer who is owed Sh10million by the firm, said the debt has made him relocate from his home county of Garissa to Kajiado.

This is because he had purchased some of the livestock on debt, and had planned to sell it to KMC and eventually pay back his debtors.

Those he owes money are now threatening him. There was a confrontation between KMC guards and the farmers as the former tried to bar the latter from entering the meat firm's gates.

Speaking to The Standard on phone KMC Managing Commissioner James Sereni said the farmers' debt will be settled in the shortest time possible.

Financial crisis

"We are facing a major financial crisis and that is why it has become hard to pay our suppliers. We have forwarded the debt issue to the Government which will facilitate payment," said Mr Sereni.

KMC is currently facing operational challenges with production having gone down significantly.

When the meat firm was operating at full capacity, it would slaughter 7,000 animals a week. The figure has now plummeted to 200 animals.

KMC's total debt now stands at Sh1.1 billion according to figures from the Ministry of Agriculture.

Most farmers especially from arid areas are now shying from supplying the firm with livestock due to lack of pay.