FALLOUT AT AGRICULTURE SOCIETY AFTER SH85BN DEAL TO LEASE SHOWGROUNDS

ASK officials lift a boy to remove a nest from a stalk of new variety bananas at Moi showgrounds, Kakamega. A 50-year deal with a US firm will see the society paid more than Sh100 million as annual rent for the use of 16 showgrounds. PHOTO | ISAAC WALE |   NATION MEDIA GROUP

By MUCHIRI GITONGA

A vicious battle for control of billions of shillings is threatening to destroy the country’s 114-year-old premier agricultural show organiser, the Agricultural Society of Kenya.

The council, which is the governing body of the society, is already split in two following a controversial special meeting on February 27 at which one faction claimed to have elected a Kakamega-based High Court judge, Justice Anthony Mrima, the national chairman.

But another section of members who support the outgoing deputy national chairman in charge of development, Mr Joseph Gachagua, for the chairmanship say the returning officer from the Agriculture ministry has called off the elections due to irregularities that preceded it.

“The standoff could hurt the government’s goodwill which the society has enjoyed over the years. I understand the CEO and the outgoing chairman have ignored the directive by government officers not to hold the election until the sticky issues have been resolved,” trustee George Mwai said.

He acknowledges that all is not well in the society and said it was necessary to restructure its management to make it more stable. “I am trying to contact other trustees for the way forward,” he said.

Mr Batram Muthoka, the society’s chief executive officer, could not be reached for comment although he sent text messages stating he was in a meeting and would call later.

Ms Alice Kalya, the outgoing national chairperson, also parried questions on the matter, saying she could not give the details on phone.

It appears that the election results are just one contentious issue together with a fight for control of millions of shillings generated from annual agricultural fairs, concessions, and sponsorship.

“The issue of money is also there because we have a partner who is coming to develop show-grounds,” outgoing deputy chairman Robi Reuben Robi said.

LEASE DEAL

Two years ago, the society signed a 50-year lease with an American firm, Farmers’ Trust, to invest Sh85 billion to improve its 16 showgrounds across the country.

The deal would see the society paid more than Sh100 million as rent per year for the leasing of all show-grounds. Investment of the proceeds seems a major issue.

Council members believe the big deal has attracted the attention of non-members, including politicians, who have been nudging some candidates to take the chairmanship.

The head office is already at loggerheads with some branches that are demanding their share of the Sh56 million that Farmers’ Trust has been remitting since the leasing began in 2013. The funds are supposed to help branches organise their shows.

The concessionary deal with the American firm came as the society was realigning to fit into the new county system.. For the past decade or so, the society has been struggling to become relevant in a highly competitive environment.

Many agro-based firms have been holding free entrance field days similar to ASK shows that entail a gate fee.

Whether the controversy will affect the credibility of ASK fairs remains to be seen.

As a body that promotes agriculture, the country’s economic backbone, the society enjoyed unrivalled State goodwill over the years, with the President and Deputy President serving as patron and deputy patron.

Much, if not all, of the more than 1,000 acres of prime land reserved for shows at its 16 branches––which it is now leasing to the US firm for millions of shillings––was given to society as government grants.
The last-minute failure of the President, the society’s patron, to grace the opening of the Eldoret show on March 3 has left council members wondering whether he is aware of the controversy.

The fight has brought to fore claims of mismanagement, nepotism and tribalism in the society’s hierarchy with claims that more then 50 per cent of senior employees and appointees come from one community.

Dissatisfied council members say the society is losing money through court awards to past managers after arbitrary sackings. In 2013, for instance, the Industrial Court awarded Mr Ibrahim Manyara Sh7 million for wrongful termination the Nairobi International Trade Fair manager.

CREDIT: NMG