Petition filed against AFC managing director Kubai's contract renewal as audit concerns mount

A petition has been lodged calling for the Agricultural Finance Corporation's managing director George Kubai's tenure to lapse when his contract expires in February 2027, rather than face renewal or extension. Filed by Kenyan citizen Alan Masakhalia and addressed to Agriculture Cabinet Secretary Mutahi Kagwe, the petition demands that AFC's board conduct a transparent and competitive recruitment process to identify Kubai's successor, in line with the Government Owned Enterprises Act, 2025. Kubai, who was appointed AFC managing director in February 2021, has led the State lender for over six years. Under the Government Owned Enterprises Act, 2025, chief executives of State-owned enterprises are entitled to a three-year tenure with an option for one additional term. The law assigns responsibility for appointing and removing chief executives to their respective corporation's board. "I understand that Mr Kubai's current contractual term is due to expire in or about February 2027," Masakhalia states in the petition, urging the Agriculture ministry to ensure succession planning begins immediately and adheres to corporate governance principles. The petition's timing coincides with mounting scrutiny of AFC's financial management. The Auditor-General's report for the financial year ended June 2025 raised multiple red flags across the corporation's operations, from procurement procedures and supplier due diligence to management of repossessed agricultural properties and handling of non-performing loans. The audit documented 134 repossessed farms spanning approximately 1,087 hectares and valued at roughly Sh416 million. More critically, non-performing loans were valued at approximately Sh1.02 billion, raising serious questions about AFC's loan portfolio management and recovery of public funds. Procurement transactions also drew scrutiny, particularly those relating to cybersecurity software, a warehouse receipt financing module, and branch branding. The audit flagged shortcomings in documentation and compliance with procurement requirements across these initiatives. Masakhalia cautioned that audit observations should not be construed as evidence of criminal wrongdoing. Instead, he argued, the findings warrant thorough investigation and appropriate accountability measures that go beyond the current leadership structure. Parliamentary pressure on AFC has intensified in recent months.