ADC seeks Sh500m to clear salary arrears

Sorghum crop in Elgeyo Marakwet County. Agricultural Development Corporation is seeking funds from Treasury to enable it adequately play its role of ensuring food security. [PHOTO:GIDEON KANGOGO/STANDARD]

The Agricultural Development Corporation (ADC) is seeking Sh500 million to clear wage arrears and revamp its operations to enhance food production and dairy farming in the country, newly appointed chairman Soita Shitanda has announced.

He said they will approach the National Treasury to secure the funds towards the revitalisation programme aimed at enabling the company adequately play its role of ensuring food security.

Mr Shitanda said the Corporation will also undergo a major transformation by engaging in private partnership, and has entered into an agreement with a Chinese company to revolutionise its operations.

Unpaid wages

He observed that financial challenges have hampered operations of the corporation citing unpaid wage arrears to its workers amounting to Sh200 million.

He said Sh300 million is required to revamp the corporation and petitioned the national government to provide the funds.

“The Corporation requires Sh500 million of which Sh200 million will help clear wage arrears and Sh300 million revamp the operations and we appeal to the Treasury to support our goal by providing us with the money,” said Shitanda during a familiarisation tour of ADC farms in Trans-Nzoia County.

Shitanda, who was accompanied by Regional Manager Dr Wilson Tonui, Richard Naibei, head of technical and Public Relations Manager Evans Nyabuto assured workers that the management is committed to ensuring they are paid their wage arrears.

“The payment of wage arrears of Sh200 million is our priority in the corporation’s development agenda. We request you to be patient as we secure funds from the Treasury or private institutions,” he assured.

Shitanda acknowledged the deplorable living standards of the workers and pledged that the board would address the problem in the next few months. “I was Housing Minister for eight years and will be uncomfortable seeing staff living in such a pathetic condition. I promise that the new board will look into this in the next few months” he said.

The former minister pledged to support the management under Managing Director Dr Andrew Tuimur to steer up the operations and achieve the goals of the corporation.

ADC is a government parastatal established in 1965 through an Act of Parliament Cap 346, to facilitate the land transfer programme from European settlers to locals following the country’s independence. It was also to be a stabilising factor to assist in maintaining the good quality livestock and continuity of the breeding programs in the affected farms.

With the successful completion of the land transfer programme, revision of objectives of the Corporation was done resulting in the Act of Parliament Cap 444 of 1986.

Agricultural schemes

As per this Act, the functions of the corporation were redefined to include promotion and execution of agricultural schemes and reconstruction in Kenya by initiating, assisting or expansion of agricultural undertaking ands and enterprises.

It is on the basis of this Act that the corporation runs its operations across the country. ADC is also seeking play the role of making sufficient quantities and quality seed available to farmers and facilitate multiplication of the seed, endeavoring to make sure the seed produced is of highest quality possible.