PIC-SSAA probes AFA over audit gaps, demands accountability on billions in public funds

PIC-SSAA probes AFA over audit gaps, demands accountability on billions in public funds

Thursday 19th June, 2025.
Bunge Tower, Parliament Buildings. 

The Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA),in a session chaired by Vice-Chairperson Hon. Caleb Amisi, on its second day of inquiry met with the Director General of the Agriculture and Food Authority (AFA), Dr. Bruno Linyiru, and his team to scrutinize audit reports for the Financial Years 2020/2021 and 2021/2022.

The session revealed deep concerns about AFA’s financial management, operational efficiency, and handling of public assets, as flagged by the Auditor-General.

One major issue was AFA’s outdated motor vehicle tracking system. Although budgeted for in the 2024/2025 financial year, the system has not been upgraded. “The system was budgeted for the financial year 2024/2025, which has ended, but the system has not yet been upgraded. What is the way forward?” posed Hon. Amisi.

Another critical concern involved Ksh 2.6 billion tied to the defunct Coffee Board. The AFA management attributed inconsistencies to legislative changes and staff turnover, but indicated that a consultant had been engaged to rectify the records.

MPs further demanded explanations for the payment of Ksh 12 million to a private company and the irregular expenditure of Ksh 79 billion without proper budgetary approvals. The committee expressed dissatisfaction with AFA’s vague responses.

A long-standing issue also resurfaced: Ksh 52 million deposited in Euro Bank, which collapsed in the 1990s. The committee questioned why the matter remains unresolved after decades.

The committee criticized AFA for holding large sums 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 Hon. Amisi.

Alarm was raised over a public parcel of land bought by AFA but allegedly registered under a former chairperson’s name. The committee demanded an investigation to ascertain current ownership.

Another audit finding revealed payments to farmers were made to accounts that did not match their names—raising fears of potential fraud. Legislators called on AFA to enhance financial oversight.

Additional concerns included unsupported balances in staff car and mortgage loan schemes, irregular staff appointments, and the absence of a disaster recovery plan for key ICT systems.

“The issues raised have persisted for far too long. We recommend a forensic audit to investigate missing documents, possible loss of funds, and irregular land ownership,” said Hon. Owino.

The committee resolved to conduct a site visit to the disputed land and follow up with the newly appointed AFA board. Members stressed the urgent need for reforms, transparency, and strict adherence to audit recommendations to safeguard public resources for all Kenyans.