Kenya Meat Commission sends home 119 employees to cut ballooning wage bill

Livestock Principal Secretary Andrew Tuimur (right) goes through final documents for the Inter-ministerial taskforce set up to undertake staff rationalisation exercise at the giant meat processor. With him is KMC chairman Taraiya Koros. [PHOTO BY GIDEON MAUNDU/STANDARD]

Meat processor, Kenya Meat Commission (KMC), has sent home 119 employees following staff rationalisation programme meant to cut operation costs.

KMC says the latest turnaround plan aimed at cutting costs goes hand in hand with its ongoing Sh1.8 billion modernisation programme.

Speaking at the Mombasa Beach Hotel last week, KMC Managing Commissioner Joseph Learamo said the management was positive the exercise done humanely through voluntary retirement would result in profitability for the financially troubled meat processor.

Learamo said the state-owned firm previously had 420 employees, which were now reduced to 301 as the wage bill was unsustainable. “As we speak, the affected 119 staff were sent home and compensated.”

“KMC has been spending Sh14 million on recurrent expenditure per month despite operating below capacity and we had to embark on staff rationalisation to improve profitability,” explained Learamo.

He made the announcement during a retreat for KMC board commissioners and team leaders drawn from inter-ministerial task force set up to undertake the staff rationalisation exercise.

Among the board commissioners present were former envoys Dr Rashid Ali (Iran), Ambassador Francis Sigei (Nigeria) who chairs the human resource committee at the State-owned meat processing firm and Mr Hassan Jelle.

Also present were Principal Secretary State Department of Livestock Andrew Tuimur, KMC chairman Josiah Taraiya Ole Kores and board member Francis Sigei.

KMC is seeking Sh1.8 million from the exchequer this year, which the board hopes would return the ailing firm to profitability.

The Managing Commissioner added that upon completion of the exercise, they have been able to save Sh4 million on monthly basis after the wage bill reduced to Sh10 million up from the initial Sh14 million.

KMC management also announced that they were keen to tap into newer export markets in Dubai, China and Angola and have also received inquiries from Africa’s most populous nation- Nigeria.

The Athi-River based factory has the daily capacity to slaughter 1,000 large stock animals and 1,500 small ones. Learamo said the retreat was to discuss a report handed over by a Turkish company Ms Cemsan Makina, which was contracted to carry out technical audit of KMCs abattoirs.

He said KMC was established in the 1950s and the condition of machines and equipment in use need repairs or replacement as some of the equipment have by overtaken by technological advancements.

On his part, Ole Kores said they are in the process of persuading all government institutions to buy meat products from KMC in a bid to generate more funds to sustain its operations.

“We are in the process of persuading all government institutions including the armed forces and colleges to buy KMC products so that we stop relying on government bail-out,” he said.

Livestock Principal Secretary, Mr Andrew Tuimur who was the chief guest said the Government is committed to boosting productivity of the livestock sector, which accounts for 12 per cent of the Gross Domestic Product.