Civic group warns of ‘Shadow Treasury’ in proposed Sovereign Fund

Okoa Uchumi has petitioned Parliament to revise key sections of the proposed Sovereign Wealth Fund Bill, 2026, warning that weaknesses in its governance structure could open the door to executive interference in a fund intended to secure wealth for future generations.

In a memorandum submitted on Thursday, the civic group argued that the draft law, as currently framed, leaves the fund exposed to political control, unclear decision-making authority, and possible misuse of public resources. It said the proposed structure risks undermining the very purpose of creating a long-term national savings mechanism.

“We officially submitted our memorandum to Parliament on the Sovereign Wealth Fund Bill, 2026, because for a fund designed to protect ‘Future Generations,’ the current loopholes for executive interference are far too wide,” the organisation said.

The Bill seeks to establish a national fund to manage proceeds from strategic resources such as minerals and oil, with the goal of preserving wealth for long-term national benefit. However, Okoa Uchumi said the main concern is not the idea of the fund itself, but how it will be controlled and managed.

“The Core Issue: Who Holds the Keys?” the group posed, pointing to governance structures as the central question in the ongoing debate.

According to the organisation, the current proposals could create what it termed a “Shadow Treasury,” where a public fund meant to operate independently is instead influenced by the executive arm of government.

Among the issues highlighted is what the group described as “Executive Capture,” warning that the proposed board would largely consist of government nominees rather than independent professionals with the required expertise and accountability to the public.

It also raised concerns over “Vague Authority,” noting that the Bill does not clearly define whether the Cabinet Secretary or the board would have the final say on withdrawals. The group cautioned that such lack of clarity could lead to disputes, weaken oversight, and erode trust in the institution from the outset.

Another concern is the potential for “Political Misuse,” with the organisation warning that some provisions could turn the fund into “an election-season cash reserve,” instead of a protected pool of long-term national savings.

“The revenue from our minerals and oil belongs to the people, not a single office,” the statement said.

To address these gaps, Okoa Uchumi is calling for the creation of an independent board with broader representation beyond the executive. It proposed including members from public institutions and civic bodies to strengthen oversight and accountability.

“We are demanding an independent Board that includes voices from the National Youth Council and the Senate to ensure that ‘Urithi’ (our future heritage) is never used for recurrent debt or political projects,” the group said.

The debate around sovereign wealth funds has gained attention in countries with natural resources, as governments try to balance current financial needs with saving for the future. While such funds can help stabilise economies and build long-term wealth, weak governance systems have in some cases led to corruption and misuse.

Okoa Uchumi said it plans to hold a media briefing later in the day to outline its proposals and push for greater public engagement in reviewing the Bill.

“Don’t let the technical jargon hide the truth about who will really manage your money,” the organisation said.

The submission now adds pressure on lawmakers as they review the proposed law, with growing calls to ensure the fund is built on transparency, strong oversight, and protection from political influence.