The Kenya Meat Commission (KMC) failed to collect rent arrears totalling Sh11.7 million from tenants occupying its property.
The Athi River based factory failed to collect the rent from 36 tenants who occupied the commission’s properties without paying rent for the year ending June 2020.
The Kenya Meat Commission (KMC) failed to collect rent arrears totalling Sh11.7 million from tenants occupying its property, despite a reform push that has seen the military taking over management of the parastatal.
The Athi River based factory failed to collect the rent from 36 tenants who occupied the commission’s properties without paying rent for the year ending June 2020, contrary to provision of their lease agreements.
“The commission risk loss of income as a result of non-payment of rent and non-adherence to the lease agreement by the tenants,” Auditor-General Nancy Gathungu says in a report on KMC accounts for the year to June 2020.
The Auditor-General said the accuracy and completeness of rental income of Sh46.2 million could therefore not be confirmed under the circumstances.
President Uhuru Kenyatta, in an Executive Order issued in September 2020, reassigned KMC from the Ministry of Agriculture and Livestock to the Defence Ministry in a bid to give the cash-strapped State-owned firm a lifeline.
However, factory sales declined for the fourth consecutive year, falling to Sh126.7 million in 2020 compared to Sh188.6 million in 2019.
