The future of the State-owned Kenya Meat Commission (KMC) has come under scrutiny after auditors raised concerns over its ability to remain operational amid mounting financial losses and persistent operational challenges.
According to the latest audit report, KMC posted a net loss of Sh410 million in the financial year ending June 2025, more than double the Sh168 million loss recorded the previous year. The commission slipped back into losses after briefly returning to profitability in 2022.
KMC attributed the poor performance to cash flow constraints caused largely by unpaid bills from government institutions, which have hampered its operations.
Auditor-General Nancy Gathungu said the continued losses point to serious financial sustainability concerns, warning that the commission’s ability to operate profitably remains uncertain. The report also notes that KMC is running well below its production capacity due to heavy debts and ageing machinery.
Revenue declined during the review period as livestock supply dropped, largely because the commission lacked funds to pay farmers promptly. Outstanding debts to farmers, suppliers and other creditors, including unpaid statutory deductions, rose to Sh488 million from Sh337 million a year earlier.
The liabilities include Sh83 million in unremitted staff pension contributions and Sh115 million in unpaid taxes owed to the Kenya Revenue Authority.
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Meanwhile, outstanding receivables increased slightly to Sh694 million, with government agencies accounting for Sh552 million, or about 80 per cent of the total amount owed to the commission.
KMC is also owed Sh19 million in rental income, while another Sh126 million in receivables could not be adequately supported, remained disputed or was untraceable, casting doubt on whether the funds can be recovered.
The audit further highlights the deteriorating state of the commission’s equipment, noting that a lack of maintenance, repairs and modernisation has left many machines obsolete. As a result, production efficiency has declined, operating costs have increased and KMC has struggled to meet market demand for its products.
