This archive report was first published on 11 June 2020.
On June 11, 2020, the High Court issued a temporary suspension of the Treasury CS's proposal to dissolve the Strategic Food Reserve Trust Fund (SFRTF) and transfer its functions to the National Cereals and Produce Board (NCPB).
The proposal, issued by Treasury CS Ukur Yattani in April 2020, aimed to dissolve the Fund by revoking the Public Finance Management Act of 2015, which established the SFRTF. However, activist Okiya Omtatah filed a case in court, arguing that the legal notice was arbitrary and lacked public participation.
According to the activist, dissolving the fund would lead to misappropriation of the KSh10 billion currently in its accounts. The oversight board of the fund also expressed concerns that dissolving it would leave the process of strategic food reserve management to ministries without any oversight, potentially leading to losses.
Established in 2015 under the Public Finance Management Act, the Strategic Food Reserve Trust Fund was set up to ensure the stability of food supplies and prices by mobilizing funds to support related activities. The fund's initial capital was KSh2.2 billion, and it has continued to receive budgetary allocations from the government in subsequent financial years.
The suspension by the High Court will stay in place until July 1, 2020, when the suit will be heard.
