SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA DURING THE ST. JOHN AMBULANCE ANNUAL PARADE AND INSPECTION AT KENYATTA INTERNATIONAL CONFERENCE CENTRE, NAIROBI ON 25TH JUNE, 2006.

SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA DURING RE-OPENING OF THE KENYA MEAT COMMSSION AT KENYA MEAT COMMISSION, ATHI RIVER, MACHAKOS DISTRICT ON 26TH JUNE, 2006

Ladies and Gentlemen,

I am delighted to join you all in celebrating this important milestone in our efforts to get the livestock industry back into production. The revival of the Kenya Meat Commission is yet another important step in my Government's efforts to provide a reliable market outlet for livestock farmers, and particularly the pastoral communities in the arid and semi-arid parts of this country.

I have no doubt that the re-opening of this facility will serve to strengthen the livestock industry and improve the livelihoods of many Kenyans.

As Kenyans will recall, when my government took over management of the affairs of this country, we pledged to revive collapsed, but strategic institutions. The Kenya Meat Commission is an institution of strategic importance for economic growth and poverty alleviation. Its revival today, after 15 years of closure is consistent with my Government's policy of expanding market opportunities for the livestock sector, and in particular the pastoral communities.

The rehabilitation of this facility was undertaken at a total cost of 500 million shillings. The Government has allocated an additional 250 million shillings in the new financial year to enable the facility begin operations. It is expected that initially about 1,000 cattle will be slaughtered per day.

About 60 percent of the products will be for the export market, while the remaining 40 percent will be for local consumption. The revival of the Kenya Meat Commission will generate about 400 jobs directly, and over 40,000 jobs indirectly.

Ladies and Gentlemen,
The Kenya Meat Commission was once a vibrant facility, which matched the standards of major meat processing plants in other parts of the world. In terms of quality, K.M.C. products were recognized in key external markets and were available on the shelves of major retail chains abroad. Within the region, K.M.C. was able to provide the model for adoption in other countries and also served as a base for the transfer of skills and knowledge.

At the local level, K.M.C. formed an integral part of the national food security system by assuring the livelihoods of pastoral communities as a buyer of last resort. It also formed an important link to the animal health and disease control system, which secured the country's access to external markets for both live animals and meat products.

However, due to a combination of internal and external factors, these attributes were lost leading to the closure of the facility 15 years ago. We will not dwell too much on what led to this closure, but we must reflect on the lessons learnt from the economic and social costs of the closure of such a vital and strategic institution. I am happy to state that today Kenya Meat Commission is beginning the process of reclaiming its lost glory.

In doing so, both the Government and the Kenyan public as a whole, will expect the K.M.C. Board and the Management team to pursue a professional and results-based management approach in order to cope with modern dynamics in the livestock industry.

Indeed, the revival of K.M.C. has come at a time when globalization has increased competition in all sectors of the economy. Meat, for example, is being produced cheaply from the major producers in the North and South America and Australia. Nearer home, some African states are performing well in the market.

Therefore, the management of this plant must aim to be competitive in order to ensure better returns for the livestock farmers. Moreover, this facility should generate sufficient level of profit to attract additional capital investments through private sector participation. Such results can only be secured by a committed and responsible management team.

Ladies and Gentlemen,
My Government has made it very clear that public institutions should be well managed. It is also my Government's stated policy to reduce the level of subsidies to parastatals and other public bodies involved in commercial activities. The K.M.C. Board of Commissioners and the Management team should, therefore, apply appropriate operational methods to ensure that targets are realized both in terms of outputs and profits.

To livestock producers, I wish to encourage you to fully support this facility by providing quality animals, which in turn will provide quality products and attract buyers. This means that livestock farmers must invest in breed improvement, nutrition as well as animal health and husbandry.

On our part, my Government is investing substantial resources in animal health and production in support of livestock producers. We are committed to ensuring that livestock diseases within our borders are controlled through the establishment of disease free zones and strengthening of quality assurance and diagnostic capacities of the veterinary department.

I am glad to note that through regional initiatives, my Government is participating in the control of trans-boundary diseases. In this connection, Kenya has been granted Zonal Freedom from Rinderpest by the Scientific Commission for Animal Health. We shall continue to pursue these initiatives with our neighbours and especially in the Somali Ecosystem region.

Ladies and Gentlemen,
Over the last one and half years, we have been exporting live animals. During this period we have exported over 11,800 heads of cattle and over 9,000 goats worth 290 million shillings.

This development has brought about renewed interest in the livestock trade and generated substantial incomes to producers and exporters. Although this achievement is commendable, we need to invest more in efforts aimed at securing markets for meat and value-added products. Opportunities for value addition exist in skin and hides.

I expect K.M.C., through the Public and Private Sector partnerships, to recruit investors to participate in value addition in the entire production chain. To facilitate the operations of the Kenya Meat Commission, I am directing the Ministry of Livestock and Fisheries Development to secure livestock holding grounds through the acquisition of the relevant title deeds.

The holding grounds are part of the overall operation of K.M.C., since they serve as fattening grounds especially during dry periods. It is my Government's intention to rehabilitate infrastructure such as holding grounds, stock routes, boreholes and dams so as to ensure good animal husbandry practices. With these measures, I expect that K.M.C. will serve as a key agent for promoting the development of the livestock industry in the country.

In conclusion, I want to assure the K.M.C. Board and the Management of the Government's full support. I urge you to discharge your responsibilities honestly and diligently so as to ensure the success of this important facility. With these remarks, ladies and gentlemen, it is now my pleasure to declare the Kenya Meat Commission officially re-opened for operations.

Thank you and God bless you all.