Nairobi — A petition has been filed seeking to block any extension or reappointment of Agricultural Finance Corporation (AFC) Managing Director George Kubai beyond the expiry of his current term in February 2027, citing concerns over governance, procurement and financial management at the State lender.
The petition by Kenyan citizen Alan Masakhalia asks Agriculture Cabinet Secretary Mutahi Kagwe to allow Kubai's tenure to expire and initiate a transparent succession process.
Kubai was appointed AFC managing director in February 2021, according to AFC's 2021/22 financial statements.
The petition argues that the Government Owned Enterprises Act, 2025, provides for a three-year term for a chief executive, with eligibility for reappointment for one further term.
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The law also places responsibility for appointing and removing a chief executive on the board of the government-owned enterprise.
"I understand that Mr. Kubai's current contractual term is due to expire in or about February 2027," the petitioner says.
"This Petition therefore calls upon the Cabinet Secretary to ensure that the succession process at AFC is conducted strictly in accordance with the law, principles of public accountability and good corporate governance," he adds.
The petition cites findings contained in the Auditor-General's audit of AFC for the financial year ended June 2025, including concerns over procurement processes, vendor due diligence, management of repossessed agricultural assets and non-performing loans.
It cites 134 repossessed farms covering about 1,087 hectares and valued at approximately Sh416 million, alongside non-performing loans estimated at Sh1.02 billion.
The petitioner says the audit findings should be treated as matters requiring investigation and accountability, rather than proof of criminal liability against any individual.
The petition also references procurement transactions involving cybersecurity software, a warehouse receipt financing module and branch branding, alleging weaknesses in documentation and procurement compliance.
The developments come on the back of AFC's scrutiny by parliament over its financial and governance affairs.
In April, the National Assembly's Public Investments Committee on Social Services, Administration and Agriculture recommended a comprehensive forensic audit of AFC following its review of Auditor-General reports.
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The committee said its review had raised concerns over loan approvals and disbursements and other areas of AFC's operations.
Masakhalia is asking authorities to begin the succession process early, including competitive recruitment, documented performance assessment and disclosure of the legal basis for any proposed renewal.
The petition also asks that AFC protect public resources and institutional records during the transition.
