The Kenya Meat Commission owes Garissa livestock traders Sh70 million.
The animals were delivered to the indebted parastatal on credit, according to Kenya Livestock Marketing Council chairman Dubat Amey.
Amey told the press yesterday that the farmers expect the government to pay them if the parastatal fails to do so.
KMC is one of the 26 poor performing parastatals the Privatisation Commission has listed for sale.
A KMC report seen by the Star shows that it has Sh490 million pending bills. A total of Sh195 million is owed to livestock suppliers, Sh82 million to general suppliers, Sh122 million for statutory deductions and Sh92 million for the off-take programme.
The commission has for a long time experienced cash flow problems. Its operational costs are high partly due to outdated machinery that keeps breaking.
The parastatal is unable to meet customers' orders as farmers are no longer willing to make further deliveries.
Notwithstanding all these challenges, the commission has signed contracts worth Sh1 billion with customers, which, if diligently executed will stabilise its cash flow and bring it to profitability.
The report says, for the commission to stabilise, it should win back the trust of livestock farmers and the government, through the Ministry of Agriculture Livestock and Fisheries, should support it to settle pending bills.
Amey blamed mismanagement and rampant corruption for the parastatal's woes.
“Where did all the money that KMC gets from the slaughter of the animals go if not in the pockets of greedy and corrupt government officials?” Amey asked.
“We have no problem with the parastatal being privatised. Our main concern is the money KMC owes to suppliers of livestock,” he said.
