• The reinstatement follows a petition by activist Okiya Omtatah who argued dissolving the board would lead to misappropriation of Sh10 billion that is in the custody of the fund
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A court has reinstated the Strategic Food Reserve Oversight Board that was dissolved in May.
Treasury CS Ukur Yatani on May 19 issued a legal notice to dissolve the board by revoking the Public Finance Management Act 2015, which established the Strategic Food Reserve Trust Fund.
But activist Okiya Omtatah went to court to stop the notice arguing that dissolving the board could lead to misappropriation of Sh10 billion that is in the custody of the fund. Omtatah said no public participation was conducted before the decision to dissolve the fund was reached.
In June, the court gave an order suspending the notice.
“Pending the inter parties hearing and determination of this application and petition, an interim order is hereby issued suspending forthwith the Public Finance Management (Strategic Food Reserve Trust Fund) (Revocation) Regulations, 2020, (Legal Notice No 61 of 14th April 2020),” the order said.
Agriculture CS Peter Munya had argued that the roles of the board were similar to those of the National Cereals and Produce Board. In May, Munya established new reforms that were aimed at restructuring the NCPB to a commercial entity.
The Ministry of Agriculture confirmed that the court reinstated the board, saying the government does not intend to appeal the order.
Board chairman Noah Wekesa on Friday said the High Court reinstated the oversight agency to enable it to discharge its duties.
Wekesa spoke in Nairobi.
The Strategic Food Reserve Oversight Board was established under the Public Finance Management (Strategic Food Reserve Trust Fund) Regulation, 2015. The board manages the SFR in physical stock and cash equivalent.
“The board has been out of office since May when it was dissolved by the National Treasury Cabinet secretary. A section of stakeholders sought legal redress against the decision leading to the High Court suspending the revocation,” Wekesa. said.
He said members met on November 9 at Kilimo House and resolved to carry out a comprehensive verification exercise by a multi-agency team drawn from the ministries of Agriculture, Devolution, National Treasury and Interior on the pending bills for millers, merchants, transporters and farmers to settle their claims.
“The board has set aside Sh2 billion to pay pending bills to verified millers, transports, farmers and merchants,” he said.
The payment is for maize purchased from farmers and also maize importation for the year 2017.
Wekesa said nine millers and three merchants are owed money for maize imported in 2017 when there was a maize shortage in the country.
There are some farmers who were under investigation by the EACC for the maize scandal that saw about 22 government officials lose their jobs.
“The board will partner with the EACC to fast track payment of the validated claims to farmers,” he said.