Isiolo seeks Sh280 million to complete meat plant project

Modern Abattoir and machines recently installed at the facility in Isiolo County. [Bruno Mutunga Standard]

Isiolo County government is now seeking Sh280 million for the completion of a multi-million meat processing plant (abattoir) whose construction began 17 years ago and stalled.

Once complete, the project is expected to be handed over to an experienced international investor who will partner with the county in its operation.

County Chief Officer for Irrigation Godana Dida said works on the Sh865 million facility were 99 percent complete, noting that internal works involving electrical systems, civil work, and other components such as the installation of cold rooms had been done.

What remains, he explained, are the external works, such as the construction of a road network, the installation of new gates, and landscaping, which are estimated to cost Sh150 million.

The construction of the main feedlot is set to be undertaken at a cost of Sh130 million.

“The abattoir cannot operate alone because there is an aspect of the feedlot that should be ready by the time the abattoir is ready. The feedlot is just a few kilometres from the facility, where we have already drilled boreholes for water production and built troughs. What is remaining is landscaping, the construction of new gates, and fodder production,” said Dida.

Notably, works on the abattoir were initiated by President Mwai Kibaki's regime in 2008 but stalled due to the unavailability of resources for its completion and technical challenges.

Once the project was handed over to the county government shortly after the advent of devolution, the World Bank in 2022 allocated Sh451 million to kick-start the project.

The Governor Abdi Guyo-led administration has since injected an additional Sh412 million to expand the facility into an export abattoir, which, when completed, will serve six neighbouring countries, including Ethiopia and South Sudan.

“When the county government came, we redid the project. We involved a consultant who advised us that the former structure, which was done by the national government, was not up to the required standards and could not meet export expectations. We had to do a complete overhaul of the construction,” noted Dida.

“There was the need for the addition of cold rooms and creation of internal space, which can now accommodate 2,400 shoats, 300 cattle, and 100 camels for slaughter daily,” he added.

The chief officer also highlighted that plans to identify an international investor to run the facility were at an advanced stage.

The county has already conducted an expression of interest, completed the evaluation process, and is now in the public participation phase.

 

He explained that the decision to involve a foreign investor was due to the county government’s lack of capacity to fully manage the multi-million-shilling facility.

“The estimated daily operation cost of the abattoir is about Sh2 billion, given the number of animals that will be slaughtered daily and the subsequent connectivity to the international market. In consideration of these aspects, we decided to hand over the facility to an experienced international investor once complete,” Dida clarified.

Already, two companies – one from the United States and another from Botswana – have expressed interest in taking over the facility’s operations.

Once complete, the abattoir is expected to create direct employment for 400 people and approximately 20,000 indirect jobs, serving residents from Marsabit, Wajir, Garissa, and Samburu counties, where 80 per cent of residents are livestock keepers.

“Our plan is to engage livestock farmers in cooperatives to purchase their livestock for slaughter and export. We have already started the process together with the national government,” Dida said.

Last month, Governor Abdi held deliberations with the Principal Secretary in the Ministry of Agriculture and Livestock Development, Jontahn Mueke, as well as with the World Bank on ways to improve the project.

He was optimistic that the World Bank would fast-track the release of funds earmarked for the project, while the Ministry of Livestock will collaborate with the county on animal tagging to meet the required export standards.

It was also agreed that a technical committee would be established to oversee efficient operations and maximise value for the livestock farmers.

"This project represents a transformative step for Isiolo's economic development and the livestock sector," said Governor Abdi.

Business
Debate on diaspora bond sparks mixed reactions among Kenyans
Financial Standard
End of an era as Mastermind Tobacco to go under the hammer
Business
Irony of lowest inflation in 17 years but Kenyans barely making ends meet
Financial Standard
2024: Year of layoffs as businesses struggle to stay afloat