Senate queries fate of Sh10bn in disbanded food reserve account

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Treasury Cabinet secretary Ukur Yatani. FILE PHOTO | NMG

What you need to know:

  • SFR had at least Sh10 billion in its account arising from the sales of maize to millers and other institutions from their stores before its dissolution.
  • The Senate Committee on Agriculture has also opened investigations into the government’s failure to buy maize one week after President Uhuru Kenyatta announced that the staple will be bought this year at a minimum of Sh2,500 per 90-kg bag.
  • Bungoma Senator Moses Wetang’ula demanded a statement on reasons behind the National Cereals and Produce Board failure to open its doors to farmers.

Parliament wants Agriculture secretary Peter Munya to explain the status of more than Sh10 billion that was in the Strategic Food Reserve (SFR) board bank account before it was disbanded in April.

SFR had at least Sh10 billion in its account arising from the sales of maize to millers and other institutions from their stores before its dissolution.

The Senate Committee on Agriculture has also opened investigations into the government’s failure to buy maize one week after President Uhuru Kenyatta announced that the staple will be bought this year at a minimum of Sh2,500 per 90-kg bag.

Bungoma Senator Moses Wetang’ula demanded a statement on reasons behind the National Cereals and Produce Board failure to open its doors to farmers.

“The committee should outline steps that the ministry is taking to ensure that NCPB buys maize from farmers that is due for harvest. The committee should also explain where more than Sh10 billion that was in SFR board account is,” Mr Wetangula said.

Treasury Secretary Ukur Yatani disbanded the Strategic Food Reserve (SFR) board in an apparent effort to end turf wars that had rocked management of the national granary in the last four years.

Mr Yatani in April sent packing the team that was led by former Cabinet minister Noah Wekesa after he revoked the Public Finance Management (Strategic Food Reserve Trust Fund) regulations, of 2015, which created the SFR Trust Fund.

The Cabinet directed the Treasury to wind up SFR in six months. Dr Wekesa had frequently clashed with the successive Agriculture Cabinet secretaries on the emotive issue of maize imports.

Dissolution of SFR was first mooted by Agriculture Secretary Peter Munya, shortly after being appointed in the docket, arguing that the decision was informed by the fact that the body has been duplicating roles that are already carried out by the NCPB.

The NCPB had been at loggerheads with the SFR, claiming that the outfit owes it millions of shillings for the services such as buying and storage of strategic maize.

“If NCPB is not open, middlemen will mop up maize at low prices and offload to market at higher prices when there is shortage in the country,” Mr Wetang’ula said.

Farmers in Western Kenya, Narok, Bomet, Kericho, Nakuru, Nyanza, Nandi, Bungoma, Trans Nzoia and West Pokot have started harvesting.

Mr Wetang’ula sought to know measures the government is taking to ensure farmers are supplied with seeds and fertiliser for the short rains.

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