Meat processor KMC eyes franchises to expand footprint in counties

A worker at the Kenya Meat Commission abattoir in Kibarani, Mombasa County. [Maarufu Mohamed, Standard]

Kenya Meat Commission (KMC) is targeting meat lovers across counties through franchised butcheries that promise to rival other outlets on price and quality.

One of the oldest meat processors in the East African region, KMC says it wants to partner with franchisees to package and sell meat and meat products from as low as 100 grammes under the brand 'Nyama Haven'.

This arrangement looks set to take on the meat outlets operating within estates as the Kenya Defence Forces-run entity seeks to compete on quality and affordability.

KMC says in tender documents that it wants to licence some of its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchise.

"KMC shall sell to the franchisee branded packaged products as per market preference distinct for each location," says the commission.

"All meat and meat products (beef, lamb and mutton) sold through the franchisee shall always be exclusively sourced from KMC."

The franchisee will, however, be allowed to source white meat products such as chicken and fish from KMC-approved distributors.

KMC says it will give about a five per cent discount on products sold to the franchisee while the franchisee's selling price will not be allowed to exceed a 20 per cent margin.

It says it will roll out the franchising concept within strategic locations in Nairobi and Mombasa and gradually grow the concept to other counties as advised by market demand.

The Coastal region will, for instance, cover strategic locations in Mombasa such as Likoni, Changamwe, Nyali and Mtwapa and expand to other towns.

Only one franchisee will be allowed to operate within a five-kilometre radius to curb unhealthy competition.

In return, the franchisee shall pay a certain fee and agree to the terms and conditions advanced by KMC upon signing a franchising contract.

All franchised outlets will have cold storage and display units, in addition, to a flycatcher, electronic weigh scale and stainless steel meat table.

The franchisee will also use KMC's logo and KMC Nyama Haven as a trademark besides its trading name.

Successful bidders will sign a three-year contract with KMC that will be renewed based on performance and compliance.

Started in 1950, KMC was re-opened on June 26, 2006, after 15 years of closure. It is involved in processing meat for domestic and export markets.

KMC has its head office in Athi River town, off the Nairobi-Mombasa highway, where it also operates the country's largest abattoir.

It also has a depot along Landhies Road, Nairobi, which serves as a sales and distribution depot for cut beef and other products.

KMC also runs Kibarani abattoir in Mombasa that serves the Coastal region, in addition to the Shimanzi depot for cut beef and other products.