KFC potato shortage shows gaps in local purchasing
The fast food business has been a major source of foreign direct investment in Kenya, helping to boost revenue and create jobs.
One of the top firms, KFC, which, since its arrival, done pretty well, has in the past few days found itself as the subject of public discussion following its disclosure that it is experiencing a shortage of potatoes to make chips(French fries).
Kenyans have reacted angrily to the announcement. They have taunted the firm to import customers as well. The fast food chain has been affected by delays in the delivery of potatoes from its overseas suppliers, forcing it to offer customers alternative food items to the popular chips.
KFC Chief Executive for East Africa Jacques Theunissen says the shortage is due to a hitch in global supply of potatoes. But critics are not amused that KFC ran out potatoes during the festive season while farmers in Molo and Nyandarua lack buyers for their produce. They have been forced to sell their potatoes at throwaway prices.
The firm has explained that it does not source potatoes locally because they have to observe global quality standards. It cannot bypass the approval procedures to allow local farmers to fill in the gap.
While in the initial days of the venture it would have made sense to solely rely on imports, local capacity should be built for the enterprise to become self-sufficient.
KFC is quite right that it cannot bypass the approvals system as it must ensure the safety of consumers. However, it now has to grapple with a negative public reaction. Its explanation may be cogent but what is not understandable is why, 10 years since it started operations in Kenya, it has not vetted and chosen a few local farmers to grow quality potatoes for its use. This is what other multinationals do in their host countries.
Even as KFC comes under fire, the regulator of international firms operating in Kenya must not escape censure.
They should be monitoring foreign investors and ensuring that they not only get a just return on their investment but also help to boost local capacity.
