Petition seeks to block third term for AFC boss George Kubai

NAIROBI, Kenya – A petition has been submitted to Agriculture Cabinet Secretary Mutahi Kagwe, urging the termination of Agricultural Finance Corporation (AFC) Managing Director George Kubai's tenure and the initiation of a transparent succession process. The petition, filed by Kenyan citizen Alan Masakhalia, is concerned with governance, procurement, and financial management issues at the State lender.

Kubai was appointed in February 2021, with his contract set to expire in February 2027. The Government Owned Enterprises Act, 2025, stipulates a three-year term for a chief executive, with the possibility of one additional term. However, the petition argues that Kubai's current contractual term should be allowed to conclude, and a new leader appointed in accordance with the law, principles of public accountability and good corporate governance.

The petition cites Auditor-General's audit findings from AFC's financial year ending June 2025, pointing to concerns regarding procurement procedures, vendor due diligence, management of repossessed agricultural assets, and non-performing loans. The audit highlighted 134 repossessed farms covering approximately 1,087 hectares and valued at around Sh416 million, alongside non-performing loans estimated to be worth Sh1.02 billion.

Additionally, the petition addresses procurement transactions involving cybersecurity software, a warehouse receipt financing module, and branch branding, alleging weak documentation and compliance issues. AFC has been under parliamentary scrutiny for its financial and governance affairs, with the National Assembly's Public Investments Committee on Social Services, Administration and Agriculture recommending a comprehensive forensic audit in April.

Masakhalia seeks early commencement of the succession process, including competitive recruitment, documented performance assessments, and transparency regarding the legal basis for any proposed renewal. The petition also calls for AFC to safeguard public resources and institutional records throughout the transition period.