The Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) has raised serious concerns over financial mismanagement and lack of accountability by the Agriculture and Food Authority (AFA), after a tense session in Parliament on Thursday.
The session, chaired by Vice Chairperson and Saboti MP Caleb Amisi, was the second day of inquiry into the Auditor-General’s reports for the 2020/2021 and 2021/2022 financial years.
Appearing before the committee was AFA Director General Dr. Bruno Linyiru and his team, who struggled to respond to multiple audit queries raised by lawmakers.
One of the main issues was the unexplained expenditure of Sh79 billion that was not backed by proper budgetary approvals. The committee also questioned a payment of Sh12 million to a private company, but AFA failed to provide adequate documentation or justification for the transaction.
Lawmakers were further concerned about the Sh2.6 billion tied to the now-defunct Coffee Board of Kenya. AFA management attributed record inconsistencies to changes in legislation and high staff turnover, and said they had hired a consultant to help clean up the records.
The committee also faulted AFA for failing to upgrade its vehicle tracking system, despite having budgeted for it in the 2024/2025 financial year. “The financial year has ended, yet the system is still outdated. What is the way forward?” Amisi asked.
Another unresolved matter that resurfaced involved Sh52 million deposited in the collapsed Euro Bank in the 1990s. MPs questioned why the funds had not been recovered, decades later.
MPs sharply criticized AFA for holding large sums of public funds in commercial bank accounts instead of investing them in Treasury bills, as recommended by the National Treasury. “This is a clear disregard of public financial management guidelines and must stop immediately,” warned Amisi.
The committee also raised alarm over a piece of public land reportedly bought by AFA, but allegedly registered under the name of a former board chairperson. MPs demanded a full investigation to confirm the current ownership of the land.
In another worrying revelation, the audit found that payments to farmers were made to accounts that did not match the names of the intended beneficiaries, raising fears of possible fraud.
Additional concerns included unsupported balances in the staff car loan and mortgage schemes, irregular staff hiring, and the lack of a disaster recovery plan for the authority’s ICT systems.
“These issues have persisted for too long. We recommend a forensic audit to uncover missing documents, possible loss of funds, and the irregular registration of land,” said Embakasi East MP Babu Owino.
The committee now plans to visit the disputed land and follow up with the newly appointed AFA board.
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