KMC admits it owes livestock traders Sh264 million

Livestock traders and farmers from pastoralist counties have demanded that the Kenya Meat Commission clear their Sh264 million debts.

They said in Kajiado on Friday that they have waited for the money for the past three years. Their representatives David Nkirrimpai (Kajiado), Moses Tunai (Narok) Hassan Hussein (Eastern), Mohammed Dagane (North Eastern) and Moses Meeli (Kajiado).

“We have had a painful experience for the last three years. No one seems to be ready to assist us even after using politicians to take our plight to the Senate and the National Assembly,” Nkirrimpai said.

He appealed to President Uhuru Kenyatta to intervene just as he has done for coffee, maize and sugarcane farmers.

“We know the President will be in Narok during the Madaraka Day on June 1. We want him to address this issue. We are saying so because among us are many farmers and traders from Narok county who are also owed millions of shillings,” Nkirrimpai said.

Hussein said livestock farmers in the country have been reduced to paupers.

“We are owed millions of shillings by KMC, which is the cause of our frustration. Our children are not going to school. Some of us have separated with our wives because of poverty,” he said.

In response, however, KMC acting chief accountant Diana Odongo said they are in talks with the Ministry of Agriculture, Livestock, and Fisheries over the debt. The accounts department said the commission's CEO James ole Serian met with the Parliamentary Committee on Agriculture and raised the matter.

“We've asked for more money to be factored in the 2019-20 budget on our recurrent expenditure so we can pay the farmers,” KMC spokesman Peter Rakawa said.

But Hussein questioned why KMC is ordering for livestock yet they have no money to pay.

Meeli said they be paid before the commission is privatised. According to a KMC report seen by the Star, the commission’s outstanding pending bills stands at more than Sh490 million which comprises Sh264 million for livestock suppliers.

Kenya Livestock Marketing Council chairman Dubat Amey says the traders supplied their livestock knowing that the government would intervene if the parastatal failed to pay.

The Commission has been experiencing cash flow challenges and is not able to meet its obligations on a timely basis due to high operational costs arising from old machines and low production levels due to frequent breakages.

The pending bills, especially on livestock, has affected its ability to meet consumer demand orders. Farmers are no longer willing to supply their livestock.

It has, however, signed contracts with customers worth about Sh1 billion, which, if fully serviced, can stabilise its cash flow and ensure profitability.