Taxpayers risk losing Sh325m in AFA merger

Auditor- General Edward Ouko. FILE PHOTO | NMG

What you need to know:

  • Auditor- General Edward Ouko says he is unable to confirm whether the property, plant and equipment balance of Sh3.8 billion that AFA reported for the year to June 2016 “is fairly stated.”
  • Mr Ouko says the Sh3.8 billion worth of AFA assets excludes several properties, whose ownership has not been established or explained.
  • He cites the example of land measuring 236.35 hectares in Thika sub-county in Kiambu valued at Sh72 million that has not been fully accounted for.

Taxpayers may have lost to individuals land and motor vehicles worth Sh325 million that belonged to State corporations, which were merged into the Agriculture and Food Authority (AFA) in 2013, according to a newly-released audit report.

Auditor- General Edward Ouko says he is unable to confirm whether the property, plant and equipment balance of Sh3.8 billion that AFA reported for the year to June 2016 “is fairly stated.”

AFA took over the assets and liabilities of the Coconut Development Authority, Kenya Sugar Board, Tea Board of Kenya, Coffee Board of Kenya, Horticultural Crops Development Authority, Pyrethrum Board of Kenya, Cotton Development Authority, Sisal Board of Kenya, Pest Control Products Board and the Kenya Plant Health Inspectorate Service following repeal of the law.

Mr Ouko says the Sh3.8 billion worth of AFA assets excludes several properties, whose ownership has not been established or explained. He cites the example of land measuring 236.35 hectares in Thika sub-county in Kiambu valued at Sh72 million that has not been fully accounted for.

“Title documents for land measuring 137.2 hectares out of the 236.35 hectares have not been provided for audit review. It has not been possible therefore to confirm ownership status of land measuring 137.2 hectares,” Mr Ouko says in a disclaimer opinion of the AFA audit.

Mr Ouko says the authority has not obtained title deeds for land valued at Sh161.2 million on which the defunct Horticultural Crops Development Authority depots stand.

“Further, ownership of plot L.R.No.209/12490 situated along Mombasa Road, measuring 3.5 hectares and valued at Sh86 million remains in dispute.” Ownership of two motor vehicles with a value of Sh6.8 million is in doubt, the auditor says, because one of the vehicles still belongs to Coffee Research Foundation.

The report says the Sh3.8 billion of AFA assets excludes land of undetermined value in Athi River, which was allocated to the defunct Kenya Sugar Board on April 18, 1995.

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