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In 1972, a shortage of meat forced the govt to license private abattoirs.
In short order, there was an influx of meat, much of which was of dodgy quality.
In 1973, the govt ordered that all meat transport vehicles bear a red stripe for identification.
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In short order, there was an influx of meat, much of which was of dodgy quality.
In 1973, the govt ordered that all meat transport vehicles bear a red stripe for identification.
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It was about the same time that Mohammed Ali Motha, a butcher, and his business partner Abdul Habib Adam, founder of Adam's Arcade, came up with the idea of a Halal slaughterhouse in Ngong under Halal Meat Products Limited.
Adam died in 1974, leaving Halal to the Mothas.
It was about the same time that Mohammed Ali Motha, a butcher, and his business partner Abdul Habib Adam, founder of Adam's Arcade, came up with the idea of a Halal slaughterhouse in Ngong under Halal Meat Products Limited.
Adam died in 1974, leaving Halal to the Mothas.
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In 1974, Jeremiah Nyagah, the then Agriculture minister approved construction of an abattoir and inspection unit at a cost of Sh9.6mn.
The govt loaned £500,000 (±Sh7mn) but declined to take a stake, a decision that would later prove rather costly. https://nation.africa/kenya/news/sh6bn-meat-factory-scandal-returns-to-haunt-kenyan-taxpayers-137354
In 1974, Jeremiah Nyagah, the then Agriculture minister approved construction of an abattoir and inspection unit at a cost of Sh9.6mn.
The govt loaned £500,000 (±Sh7mn) but declined to take a stake, a decision that would later prove rather costly. https://nation.africa/kenya/news/sh6bn-meat-factory-scandal-returns-to-haunt-kenyan-taxpayers-137354
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In 1974, the Commissioner of Lands, James O’Loughlin, asked the Department of Veterinary Sciences to surrender 20 acres for the project.
The department resisted but later gave up 10 acres in Bulbul, Ngong.
Construction started towards the end of 1974 and took four years.
In 1974, the Commissioner of Lands, James O’Loughlin, asked the Department of Veterinary Sciences to surrender 20 acres for the project.
The department resisted but later gave up 10 acres in Bulbul, Ngong.
Construction started towards the end of 1974 and took four years.
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In the same year, O’Loughlin had forcibly transferred 3 plots of land from the then mayor of Nakuru, Dr Isaac Kirubi.
In an affidavit, Dr Kirubi claimed:
“He ordered me to surrender my rights to the land in favour of Mama Ngina but I refused” https://nation.africa/kenya/news/doctor-sues-mama-ngina-over-land--806582
In the same year, O’Loughlin had forcibly transferred 3 plots of land from the then mayor of Nakuru, Dr Isaac Kirubi.
In an affidavit, Dr Kirubi claimed:
“He ordered me to surrender my rights to the land in favour of Mama Ngina but I refused” https://nation.africa/kenya/news/doctor-sues-mama-ngina-over-land--806582
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In 1977, the Auditor General, DG Njoroge (below) noted that interest on the loan to Halal had not been paid per the loan agreement.
A site inspection later found Dept of Veterinary Science employees working at the Halal plant.
Halal also exported meat, a preserve of the KMC.
In 1977, the Auditor General, DG Njoroge (below) noted that interest on the loan to Halal had not been paid per the loan agreement.
A site inspection later found Dept of Veterinary Science employees working at the Halal plant.
Halal also exported meat, a preserve of the KMC.
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Several workers at the Halal facility were also former KMC employees and minister Jeremiah Nyagah believed that they were clandestinely using Halal to hijack the multimillion meat export business.
Corruption at KMC may have been long in the making.
Several workers at the Halal facility were also former KMC employees and minister Jeremiah Nyagah believed that they were clandestinely using Halal to hijack the multimillion meat export business.
Corruption at KMC may have been long in the making.
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In 1979, Mr Nyagah decided to deny Halal an export licence.
Halal eventually shut down for lack of access to the export market.
In 1984 Tourism minister Maina Wanjigi (father to Jimmi Wanjigi) pushed for re-opening of the abattoir to process game meat for export.
In 1979, Mr Nyagah decided to deny Halal an export licence.
Halal eventually shut down for lack of access to the export market.
In 1984 Tourism minister Maina Wanjigi (father to Jimmi Wanjigi) pushed for re-opening of the abattoir to process game meat for export.
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In June 1984, Pres Moi directed agric minister William Omamo (dad to CS Raychelle Omamo) to reopen the Halal abattoir.
He re-opened it, as a subsidiary of KMC.
In 1986 Motha sued the govt after a buyout deal fell through and in 1988, the govt resolved to hand the plant back.
In June 1984, Pres Moi directed agric minister William Omamo (dad to CS Raychelle Omamo) to reopen the Halal abattoir.
He re-opened it, as a subsidiary of KMC.
In 1986 Motha sued the govt after a buyout deal fell through and in 1988, the govt resolved to hand the plant back.
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Attempts to settle out of court failed as the parties could not agree on valuation of the abattoir with the govt offering Sh287mn and Halal claiming a Sh350mn valuation.
By 1996, the government had not handed back the facility and it was guarded by GSU officers.
Attempts to settle out of court failed as the parties could not agree on valuation of the abattoir with the govt offering Sh287mn and Halal claiming a Sh350mn valuation.
By 1996, the government had not handed back the facility and it was guarded by GSU officers.
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In 2005, High Court judge Jeanne Gacheche awarded Halal/Motha Sh1.8bn, but ordered that the Sh27mn loan be deducted from the award.
The Appeals Court affirmed in 2016.
The award had then grown to Sh5.7bn with the Sh27mn govt loan now worth Sh1.1bn. https://www.businessdailyafrica.com/corporate/Meat-company-wins-Sh1-8bn-in-27-year-dispute-with-State-/539550-3370630-15arsnxz/index.html
In 2005, High Court judge Jeanne Gacheche awarded Halal/Motha Sh1.8bn, but ordered that the Sh27mn loan be deducted from the award.
The Appeals Court affirmed in 2016.
The award had then grown to Sh5.7bn with the Sh27mn govt loan now worth Sh1.1bn. https://www.businessdailyafrica.com/corporate/Meat-company-wins-Sh1-8bn-in-27-year-dispute-with-State-/539550-3370630-15arsnxz/index.html
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In a project where the govt provided the capital, the land and the employees to run a private project, taxpayers in 2020 are on the hook for Sh4.6bn on yet another billion-shilling blunder made in the 1970s.
[Kenya National Assembly Official Record (Hansard) Mar 12, 1987]
![12/In a project where the govt provided the capital, the land and the employees to run a private project, taxpayers in 2020 are on the hook for Sh4.6bn on yet another billion-shilling blunder made in the 1970s.[Kenya National Assembly Official Record (Hansard) Mar 12, 1987]](https://pbs.twimg.com/media/EhxUBMRUwAABYqw.png "12/In a project where the govt provided the capital, the land and the employees to run a private project, taxpayers in 2020 are on the hook for Sh4.6bn on yet another billion-shilling blunder made in the 1970s.[Kenya National Assembly Official Record (Hansard) Mar 12, 1987]")
In a project where the govt provided the capital, the land and the employees to run a private project, taxpayers in 2020 are on the hook for Sh4.6bn on yet another billion-shilling blunder made in the 1970s.
[Kenya National Assembly Official Record (Hansard) Mar 12, 1987]
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Which brings us right back to the early 70s when the licensing of private slaughterhouses led KMC to some hard times.
KMC was established in 1950 under the KMC Act, to purchase livestock and acquire, establish and operate abattoirs in the country. https://nation.africa/kenya/news/how-colonial-legacy-made-kmc-bite-off-more-than-it-could-chew--1937416
Which brings us right back to the early 70s when the licensing of private slaughterhouses led KMC to some hard times.
KMC was established in 1950 under the KMC Act, to purchase livestock and acquire, establish and operate abattoirs in the country. https://nation.africa/kenya/news/how-colonial-legacy-made-kmc-bite-off-more-than-it-could-chew--1937416
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It succeeded the Meat Marketing Board established just after WWII, and mostly served the settler community.
KMC also had a virtual monopoly over all stages of the livestock marketing process.
file:///Users/stephenkiboi/Documents/Personal%20Documents/ASC-1241540-070.pdf
It succeeded the Meat Marketing Board established just after WWII, and mostly served the settler community.
KMC also had a virtual monopoly over all stages of the livestock marketing process.
file:///Users/stephenkiboi/Documents/Personal%20Documents/ASC-1241540-070.pdf
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KMC was profitable for the first 20 years of its existence.
However, as KMC managers ran Halal and hijacked the meat export business in the 70s, mismanagement became the order of the day at KMC and the parastatal began to experience financial difficulties.
KMC was profitable for the first 20 years of its existence.
However, as KMC managers ran Halal and hijacked the meat export business in the 70s, mismanagement became the order of the day at KMC and the parastatal began to experience financial difficulties.
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Things worsened in the 80s as market liberalization initiatives pushed by the IMF, coupled with endemic corruption and mismanagement, led to the collapse of KMC and the Uplands Bacon Factory in 1986... and to the faltering of KCC.
Things worsened in the 80s as market liberalization initiatives pushed by the IMF, coupled with endemic corruption and mismanagement, led to the collapse of KMC and the Uplands Bacon Factory in 1986... and to the faltering of KCC.
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The story of Uplands Bacon (founded in 1906) is especially sad but we will leave that for another time.
Suffice it to say that it was sacrificed in favour of the Eldoret Airport in a corrupt deal engineered by the Moi govt and international fraudster, Tiny Rowland.
The story of Uplands Bacon (founded in 1906) is especially sad but we will leave that for another time.
Suffice it to say that it was sacrificed in favour of the Eldoret Airport in a corrupt deal engineered by the Moi govt and international fraudster, Tiny Rowland.
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In 1992, KMC shut down as the market got competitive and mismanagement prevailed.
It was reopened in 2006 by President Kibaki after the govt put up Sh1.9bn to revamp operations.
By 2009 however, it was close to collapse as working capital ran out. https://www.standardmedia.co.ke/financial-standard/article/1144007917/kenya-meat-commission-close-to-second-collapse
In 1992, KMC shut down as the market got competitive and mismanagement prevailed.
It was reopened in 2006 by President Kibaki after the govt put up Sh1.9bn to revamp operations.
By 2009 however, it was close to collapse as working capital ran out. https://www.standardmedia.co.ke/financial-standard/article/1144007917/kenya-meat-commission-close-to-second-collapse
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In 2012, Lands Minister James Orengo revealed that thousands of acres belonging to KMC had been grabbed including 891 acres in Kitengela and 25 acres in Mavoko that had been converted into a commercial building. https://www.businessdailyafrica.com/news/KMC-land-lost-to-grabbers-Orengo-tells-Parliament-/539546-1423092-6u8fxb/index.html
In 2012, Lands Minister James Orengo revealed that thousands of acres belonging to KMC had been grabbed including 891 acres in Kitengela and 25 acres in Mavoko that had been converted into a commercial building. https://www.businessdailyafrica.com/news/KMC-land-lost-to-grabbers-Orengo-tells-Parliament-/539546-1423092-6u8fxb/index.html
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Worst still was the disappearance of 16 titles to prime properties, originally charged to National Bank for a loan but which were never discharged after the 2006 bailout.
KMC had incurred legal fees of Sh160mn trying to get back the titles. https://www.businessdailyafrica.com/corporate/KMC-has-no-title-deeds-for-16-prime-properties-/539550-1464146-3q5jnbz/index.html
Worst still was the disappearance of 16 titles to prime properties, originally charged to National Bank for a loan but which were never discharged after the 2006 bailout.
KMC had incurred legal fees of Sh160mn trying to get back the titles. https://www.businessdailyafrica.com/corporate/KMC-has-no-title-deeds-for-16-prime-properties-/539550-1464146-3q5jnbz/index.html
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By then, KMC only controlled its 40-acre plant at Athi River and an 11,000-acre ranch in Kwale.
A 20,000-acre ranch in Kitengela had been grabbed, leaving 2,500 acres, as was the 4,000-acre Beacon Ranch that stretched to Mlolongo. https://nation.africa/kenya/business/auditor-general-threatens-to-declare-kmc-bankrupt-over-loss-of-deeds--808102
By then, KMC only controlled its 40-acre plant at Athi River and an 11,000-acre ranch in Kwale.
A 20,000-acre ranch in Kitengela had been grabbed, leaving 2,500 acres, as was the 4,000-acre Beacon Ranch that stretched to Mlolongo. https://nation.africa/kenya/business/auditor-general-threatens-to-declare-kmc-bankrupt-over-loss-of-deeds--808102
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In 2013, MD Ibrahim Issak revealed that KMC had unpaid bills of Sh220mn while realising a profit of Sh51mn.
A supplier, Gideon Morintat, also threatened to file a winding up petition over Sh2.2mn that was owed for the supply of 20 beef steers. https://www.businessdailyafrica.com/corporate/New-debt-crisis-hits-Kenya-Meat-Commission/539550-1858328-bkdbjcz/index.html
In 2013, MD Ibrahim Issak revealed that KMC had unpaid bills of Sh220mn while realising a profit of Sh51mn.
A supplier, Gideon Morintat, also threatened to file a winding up petition over Sh2.2mn that was owed for the supply of 20 beef steers. https://www.businessdailyafrica.com/corporate/New-debt-crisis-hits-Kenya-Meat-Commission/539550-1858328-bkdbjcz/index.html
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Scandal
In 2009, President Kibaki announced a program to cushion farmers from drought by purchasing livestock at Sh8,000/animal.
The program died 2 months later after middlemen went purchasing animals for Sh500 and selling them to KMC for Sh8,000. https://nation.africa/kenya/news/how-corrupt-officials-converted-livestock-program-to-a-cash-cow--15986
Scandal
In 2009, President Kibaki announced a program to cushion farmers from drought by purchasing livestock at Sh8,000/animal.
The program died 2 months later after middlemen went purchasing animals for Sh500 and selling them to KMC for Sh8,000. https://nation.africa/kenya/news/how-corrupt-officials-converted-livestock-program-to-a-cash-cow--15986
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Part of the Sh30mn set aside to purchase livestock was also stolen by KMC's own MD, Ibrahim Haji, who walked into a bank and withdrew Sh11.5mn from the parastatal's bank account. https://www.the-star.co.ke/news/2020-04-30-ex-kenya-meat-commission-boss-ordered-to-return-sh115m-stolen-loot/
Part of the Sh30mn set aside to purchase livestock was also stolen by KMC's own MD, Ibrahim Haji, who walked into a bank and withdrew Sh11.5mn from the parastatal's bank account. https://www.the-star.co.ke/news/2020-04-30-ex-kenya-meat-commission-boss-ordered-to-return-sh115m-stolen-loot/
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In 2014, Agriculture CS, Feix Koskei sacked the entire board of KMC and announced that the government would inject Sh700mn while also laying off 150 "excess workers"
In 2016, KMC announced more layoffs and a Sh650mn injection of funding. https://www.businessdailyafrica.com/corporate/Sh650m-set-aside-in-mini-budget-for-KMC-layoffs/539550-3180696-iim402z/index.html
In 2014, Agriculture CS, Feix Koskei sacked the entire board of KMC and announced that the government would inject Sh700mn while also laying off 150 "excess workers"
In 2016, KMC announced more layoffs and a Sh650mn injection of funding. https://www.businessdailyafrica.com/corporate/Sh650m-set-aside-in-mini-budget-for-KMC-layoffs/539550-3180696-iim402z/index.html
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The Auditor General's Report for financial year 2016/17 noted that while KMC recorded Sh332mn in sales, it was technically insolvent.
There was also irregular sale of KMC land in Shimanzi, Kitisuru and Riverside Drive done between 1999 and 2010.
http://oagkenya.go.ke/getmedia/0f54e272-6ceb-4d49-b5d9-c617be88fbd9/The-Financial-Statement-Of-Kenya-Meat-Commission-pdf-1;.aspx?disposition=attachment
The Auditor General's Report for financial year 2016/17 noted that while KMC recorded Sh332mn in sales, it was technically insolvent.
There was also irregular sale of KMC land in Shimanzi, Kitisuru and Riverside Drive done between 1999 and 2010.
http://oagkenya.go.ke/getmedia/0f54e272-6ceb-4d49-b5d9-c617be88fbd9/The-Financial-Statement-Of-Kenya-Meat-Commission-pdf-1;.aspx?disposition=attachment
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In March 2019, the govt stated that KMC would be privatised even as parliament questioned the wisdom of injecting Sh290mn to keep the lights on.
At the time, KMC had 9-month revenues of Sh127mn and debts of Sh1.1bn while pushing 20% of capacity. https://nation.africa/kenya/business/state-finally-throws-in-the-towel-on-kmc-145980
In March 2019, the govt stated that KMC would be privatised even as parliament questioned the wisdom of injecting Sh290mn to keep the lights on.
At the time, KMC had 9-month revenues of Sh127mn and debts of Sh1.1bn while pushing 20% of capacity. https://nation.africa/kenya/business/state-finally-throws-in-the-towel-on-kmc-145980
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Livestock production is a billion-dollar sector in Kenya.
Per the 2020 Economic Survey, the value of livestock and livestock products marketed in 2019 amounted to Sh147.8bn, up 47% from Sh100bn in 2015.
Of the Sh135bn produced in 2017, KMC at Sh0.3bn contributed just 0.2%.
Livestock production is a billion-dollar sector in Kenya.
Per the 2020 Economic Survey, the value of livestock and livestock products marketed in 2019 amounted to Sh147.8bn, up 47% from Sh100bn in 2015.
Of the Sh135bn produced in 2017, KMC at Sh0.3bn contributed just 0.2%.
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Also interesting is that of the Sh1.9bn in Net Book Value of KMC's fixed assets, a significant portion of the Sh517mn comprising plant and machinery was deemed by the Auditor General to be obsolete and not working.
KMC's tangible value seems to be in land and buildings.
Also interesting is that of the Sh1.9bn in Net Book Value of KMC's fixed assets, a significant portion of the Sh517mn comprising plant and machinery was deemed by the Auditor General to be obsolete and not working.
KMC's tangible value seems to be in land and buildings.
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What's encouraging is treasury allocated funds for plant upgrades (2nd year in a row; umpteenth time in 40 yrs).
What remains to be seen is the military's expertise in running a food processing operation; something we might never really get to know. https://www.businessdailyafrica.com/news/Uhuru-orders-transfer-of-Kenya-Meat-Commission-to-military/539546-5621432-l69aetz/index.html
What's encouraging is treasury allocated funds for plant upgrades (2nd year in a row; umpteenth time in 40 yrs).
What remains to be seen is the military's expertise in running a food processing operation; something we might never really get to know. https://www.businessdailyafrica.com/news/Uhuru-orders-transfer-of-Kenya-Meat-Commission-to-military/539546-5621432-l69aetz/index.html
