An audit by the Office of the Auditor-General has revealed shocking misuse of a county agricultural fund in Busia, with county staff allegedly posing as smallholder farmers to access unsecured loans totaling Sh53.7 million. The money was originally intended for genuine farmers, but weaknesses in the legal framework and oversight have allowed misuse, raising serious concerns over accountability in devolved units.
Scheme Exploited by County Employees
According to the audit report covering the financial year ending June 30, 2024, the Busia County Agricultural Development Fund (BCADF) disbursed at least Sh53.7 million between 2016 and 2024 without collateral.
Initially, only 63 county staff admitted to receiving loans under the farmer-support scheme. But the audit later identified 128 employees who had improperly acquired funds from the scheme, some of which had already gone into default.
Weaknesses in the Legal Safeguards
The report blames changes in county law for removing important checks and safeguards. Specifically, the BCADF Act, 2014, was allegedly diluted by the county executive and assembly, undermining conditions such as collateralization and loan recovery processes.
Governor Paul Otuoma acknowledged that the law inherited from previous administrations (“a defective law”, in his words) had made it relatively easy for ineligible persons to access the fund. He said that the loans were intended for small-scale farmers who could not access commercial credit. But the audit has shown that many county employees benefited from the same scheme.
Senate Grilling and Criticism
The matter was raised before a Senate committee, where senators slammed the slow pace of recovery efforts. Although Governor Otuoma says defaulters have since been contacted and that reforms are being considered, lawmakers say recovery efforts began only in March 2024, some two years into the governor’s term.
Senators Agnes Kavindu, Raphael Chimera, Hamida Kibwana, and others pressed for accountability. Chimera asked why the urgency to recover the lost funds was missing. Senator Okiya Omtatah invoked Article 226(5) of the Constitution, which requires public officers to be held personally responsible for public funds lost through their negligence.
Possible Remedies and Next Steps
The audit recommends several corrective actions:
- Legal reforms to re-strengthen the BCADF Act, reinstating collateral requirements and clear recovery mechanisms.
- Direct deductions from salaries for those who obtained loans improperly or defaulted, as proposed by some senators.
- Legal action against officials who authorized or facilitated the misallocation. Governor Otuoma has reportedly instructed the county attorney to pursue such cases.
Implications for Busia and Wider Devolution
The scandal threatens to erode public confidence in devolved government programmes meant to uplift struggling farmers. If left unchecked, loss of such magnitude could hamper future funding, restrict access to support for genuine farmers, and worsen inequities in farming communities. The Busia case may become a cautionary tale for other counties regarding the risks of weak oversight.
Agriculture remains central to the economy and livelihoods in Busia and across Kenya. Funds such as the BCADF are vital for input supply, mechanization, and supporting subsistence and small-scale farmers. When those intended to benefit are sidelined by misappropriation, the entire agricultural value chain is undermined.
Reaction from Key Stakeholders
Governor Otuoma has expressed commitment to addressing the problem. In statements to parliament, he admitted mistakes in oversight and pledged to support amendments to the law that will shore up transparency.
Meanwhile, farmers’ groups and civil society observers are calling for swift prosecutions and full publication of the audit findings. They argue that only robust enforcement will deter future misuse. Some are pushing for external audits of other devolved agricultural funds in counties to ascertain whether similar loopholes are being exploited elsewhere.
Conclusion
The Busia County Agricultural Development Fund scandal, in which county staff impersonated farmers to secure Sh53.7 million in loans, lays bare how legal loopholes, weak oversight, and delayed accountability can conspire to subvert public good. The coming months will test whether reforms, recoveries, and prosecutions will match the severity of the breach. For Busia’s farmers, it is more than just a question of money—it is about trust in the systems meant to serve them.