Sessional Paper No. 01 of 1967 on The Loans Guarantee Act, Guarantee to the Canning Crops Board

Abstract

The reduction of deliveries to below the cannery's processing capacity combined with periodic marketing difficulties has led to Kenya Canners Ltd. suffering annual losses of considerable magnitude with the risk that the factory, which employs a labour force of 650 people, would be forced to close. Since Kenya Canners provides the major outlet for pineapples and since the greater part of the factory’s output is exported, the Government decided that every effort should be made to assist the factory to remain in producti0n and operate profitably with a view to future expansion. The Government therefore entered into negotiations with various international fruit processing companies which ended in the California Packing Corporation entering into an agreement in 1965 with the Kenya Government whereby they agreed to undertake the management 'agency of Kenya Canners Ltd., to make available their marketing organization, and to extend the capacity of the factory to enable it to double its intake from smallholder outgrowers.