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Yatani Disbands Strategic Food Reserve Trust Fund Board

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 25 June 2020.

Kenya's agriculture sector is undergoing significant reforms, with the Treasury Cabinet Secretary, Ukur Yatani, taking steps to enhance food security. As part of these reforms, Yatani has formally disbanded the Strategic Food Reserve Trust Fund (SFRTF) board.

According to a Kenya Gazette notice dated June 17, 2020, Yatani revoked the appointment of all SFRTF board members, a month after the agency was placed under the National Cereals and Produce Board (NCPB) as a department.

Dr. Noah Wekesa, who was appointed as the chairperson of SFRTF, saw his appointment lapse on October 20, 2019. Other board members whose appointments were revoked include Abbas Maalim Mohamed, Lucas Chepkitony, Susan Wairimu Mukiri, and Gerald Musila.

Established by the Public Finance Management Act in 2015, SFRTF was meant to provide the Strategic Food Reserve (SFR) with physical stock and buy maize, beans, rice, fish, powdered milk, and canned beef.

However, SFR and NCPB have been involved in a protracted row over the purchase of maize and management of funds in the sector. Cereal farmers and leaders from the country's food basket region have claimed that absorbing SFR into NCPB is part of a plan to frustrate the agricultural sector.

“Anyone who wants to dissolve the SFR is after killing the agriculture sector and we are going to oppose the plans, this sector should not be frustrated,” said Patrick Kiprono, a farmer in Cheplaskei, Eldoret.

The farmers instead want SFR transformed into a State corporation, arguing that it has helped in setting attractive prices for their crops. They cited improved maize prices this season, with a 90kg bag going for Sh3,200 due to a restructured market supply chain by SFR.

Dr. Wekesa had earlier rejected the planned merger, arguing that the board had played its oversight role. “The SFR was created by the Ministry of Finance and it will be inappropriate to merge it with NCPB since its mandate has been expanded to accommodate other foods,” he said.

However, Agriculture CS Peter Munya had said the merger will resolve administrative and financial conflicts between the two State agencies and save money. The government, he said, had been losing Sh2 billion annually in bureaucratic conflicts between the two agencies.

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