Modernisation process of the Kenya Meat Commission (KMC) Athi River Plant has commenced.
The revamping is aimed at ensuring efficiency in production of quality meat products by the company.
Speaking to this writer in his office at the factory on Monday, Managing Commissioner Joseph Learamo said the factory was being modernised as opposed to speculations that construction of a new plant to replace the existing one had been proposed by its board of directors.
“The company’s board of directors’ stand is to modernise the existing plant, a process that has successfully taken off already,” said Learamo.
Learamo said the company’s management had done a comprehensive turnaround strategic development plan to effect the modernisation and experts were being engaged to offer technical support in the process.
He said the modernisation included basic repairs, technical machinery replacements and rationalisation of workers at the factory to reduce its wage bill alongside ensuring sustainability.
“We have started basic repairs of sinks and taps in the plant alongside painting the whole factory to give it a new look under guidance of our own veterinary department. There are very technical machineries that will need high technical evaluation before replacement though,” said Learamo.
Learamo said the firm had already advertised for expression of interest to consultants who can conduct technical evaluation to determine first ranking of the modernisation process.
He said they had done the procurement process and replacement of machinery will be effected before the end of this financial year.
Learamo said the rationalisation programme will ensure that only 300 employees out of the current 415 are retained as the remaining 115 are laid off.
“We are doing a rationalization programme that will separate 115 employees so that the idle capacity is reduced. We engaged Kenya School of Government to do us the turnaround plan, with the 300 employees we will be able to effectively manage our wage bill according to our production levels,” said Learamo.
Learamo said the company had reduced payment periods of livestock suppliers from a period of 90 days to three weeks, less than a month.
He said that had seen sustainable improvement in livestock supply to the factory thereby equally improving meat products’ sales from less that Sh4 million to an average of between Sh39 to Sh45 million in a month.
Learamo said the company had also opened up its markets and had gotten substantial local markets including the Parliamentary Service Commission, several public schools and universities.
He said they had also engaged East Africa Union’s export market and will be soon signing an agreement to supply it with 30,000 metric tanks of meat annually.
Learamo said they will on the 15th of next month sign another contract to supply 20,000 metric tanks to Hong Kong annually.
“We have also gotten another open market to supply meat and meat products to Hong Kong. We will be signing the contract on 15th of next month,” said Learamo.
Learamo expressed his confidence on the modernisation and turnaround plan in its entirety arguing it was already working as justified by the progresses the firm has made since he took over as the managing commissioner.