MPs Call for Forensic Audit into AFC Over 14-Year Malpractice Scandal

A parliamentary watchdog committee has recommended a comprehensive forensic audit of the Agricultural Finance Corporation (AFC) following revelations of widespread financial mismanagement and breaches of fiduciary duty spanning more than a decade.

The National Assembly’s Public Investments Committee on Social Services, Administration, and Agriculture (PICSSAA) reached the decision after reviewing reports from the Office of the Auditor General, which uncovered systemic irregularities in loan approvals, disbursements, and asset management within the state corporation.

Chaired by Vice-Chairperson Caleb Amisi, the committee expressed shock at the scale of malpractice, particularly involving loans issued using falsified documentation and inflated collateral values.

“Every book of account before this Committee points to massive malpractice in loan approvals and disbursements. What exactly is happening in this organization?” Amisi posed during a tense session with AFC management.

The Corporation’s Director General, George Kubai, acknowledged that some of the issues flagged were historical, noting that the institution had begun internal reforms since he assumed office in 2021. He admitted that past loans were, in some cases, issued on the basis of falsified documents but insisted corrective systems had since been put in place.

Despite these assurances, lawmakers maintained that a fresh forensic audit is necessary to uncover the root causes of the persistent failures and prevent recurrence.

Ndhiwa MP Martin Owino emphasized the principle of institutional continuity, arguing that current leadership must take full responsibility for resolving inherited issues.

“The doctrine of perpetuity demands that even if you inherit a broken system, you must fix it,” Owino said.

Other members raised concerns over what they described as glaring lapses in due diligence. Jackson Kosgey questioned how loans were issued without proper verification of land titles, while Othaya MP Wambugu Wainaina suggested possible collusion between AFC officials and land officers in facilitating fraudulent transactions.

Turkana North MP Ekwom Nabuin highlighted additional governance concerns, including failure to revalue the corporation’s land assets since 2019—contrary to legal requirements—and the existence of at least 16 parcels of land without title deeds. He also raised alarm over the corporation’s failure to pay land rates for 16 years, attributing the lapse to delays in acquiring title documentation.

In a related development, the committee resolved to summon the Cabinet Secretary for Agriculture alongside the AFC Board to explain the controversial appointment of the Board Chairman. Lawmakers heard that the chairman was initially appointed in 2022 for a three-year term in violation of the State Corporations Act, served the full term without correction, and was subsequently reappointed in 2025.

Committee members warned that decisions made under the chairman’s tenure could face legal challenges due to the irregularity, raising further concerns about governance at the troubled institution.

The AFC plays a critical role in providing affordable credit to farmers and supporting national food security. Legislators now say restoring accountability and transparency within the corporation is essential to safeguarding its mandate and preventing institutional collapse.

PICSSAA is expected to table its recommendations, including the proposed forensic audit, before the House in the coming weeks.