Above cupboard soffit insulation from attic

I would assume to reduce drafts and to avoid having the loose fill insulation from going through.

International Residential Code 2003, Paragraph 602.8 says in part: Fire blocking shall be provided to cut off all concealed draft openings (both vertical and horizontal) and to form an effective fire barrier between stories, and between a top story and a roof space. Fire blocking shall be provided ... at all interconnections between concealed vertical spaces such as occur in soffits...

As a practical matter, closing at the ceiling plane produces fewer and more easily accessible joints to seal. It completes the kitchen enclosure in a simple and regular way that allows changes later.

Congratulations for working toward an energy efficient house. It would be interesting to compare next year's energy bill with last year's. TB

Thanks, it's amazing how much can be saved. According to this model, my home's energy requirements will be reduced by approx 70%.