The Coffee Bill (Senate Bill No. 10 of 2023)

REPUBLICOFKENYA

PARLIAMENT

SENATEBILLS

(Bill No. 10 of 2023)

THE COFFEE BILL, 2023

(A Bill published in the Kenya Gazette Supplement No. 26 of 10th March, 2023 and passed by the Senate, with amendments, on Thursday, 21st March, 2024.)

Clause

PARTI—PRELIMINARY

• 1—Short title.
• 2—Interpretation.

PARTII-THECOFFEEBOARDOFKENYA

• 3—Objects.
• 4—Establishment of the Board.
• 5—Headquarters.
• 6-PowersoftheBoard.
• 7—Board of directors.
• 8—Qualificationfor appointment.
• 9—Term of appointment.
• 10—Vacation ofoffice.
• 11—Functions oftheBoard.
• 12—Committees oftheboard of directors.
• 13—Delegation by the board of directors.
• 14—Remuneration of members of theboard of directors.
• 15-ChiefExecutiveOfficer.
• 16—Functionsofthechiefexecutiveofficer.
• 17-Removalofchiefexecutiveofficer.
• 18—Staff of theBoard.
• 19—Protection of members and staff from liability.
• 20—Common seal oftheBoard.
• 21—Signing Authority.
• 22—Conduct of business of the Board.

PARTIII-ROLEOFCOUNTYGOVERNMENTS

• 23-Role of countygovernments.
• 24—Enactment of county specific legislation.
• 25—Licencing of coffee operations.

THECOFFEEBILL,2023 ARRANGEMENTOFCLAUSES

PARTIV-REGULATORYPROVISIONS

• 26—Regulationof production and processing of coffee.
• 27—Registration.
• 28—Licensing.
• 29—Licences issued by the Authority.
• 30—Requirement for certificates,licences and permits.
• 31—Obligations of licence holders.
• 32—Returns.
• 33—Movement permits.
• 34—Form of licence, certificate or permit.
• 35—Duration oflicence.
• 36—Cancellation of licence orpermit.
• 37—Submission of reports.
• 38—Appeals.
• PARTV-PRODUCTIONANDPROCESSING.
• 39—Coffee production.
• 40—Importation of coffeeplantingmaterials.
• 41—Farm inputs.
• 42—Notification after planting, uprooting coffee or change of details offarm or estate.
• 43—Certification of Kenyan coffee.
• 44—Requirement relating to coffee processing.
• 45—Requirementrelatingtocoffeetraceabilityand disclosures.
• 46—Resolution by a cooperative society or coffee union.
• 47—Milling services.
• 48—Bulkingof coffee.

PARTVI-COFFEETRADINGANDMARKETING.

• 49—Coffee trading.
• 50—Internationalandlocal directcoffeesales.
• 51—Licensing and functions of Coffee Exchange.

The CoffeeBill,2023

• 52—Management of an exchange and settlement of coffee salesproceeds.
• 53Sales catalogue.
• 54Coffee warehousing in designated warehouses.
• 55—Sale of Coffee in an international exchange.
• 56—Coffee trading licence.
• 57—Export and import of Coffee.
• 58—Prohibition against blending.
• 59—Anti-competitive practices.

PARTVII-QUALITYASSURANCE.

• 60—Quality assurance for the coffee industry.
• 61—Inspections.
• 62—Coffee imports to conform to standards.

PARTVIII-FINANCIALPROVISIONS

• 63—Funds oftheBoard.
• 64Coffee development levy.
• 65—AnnualEstimates.
• 66AccountsandAudit.
• 67Annual report and publication.
• 68—FinancialyearoftheBoard.

PARTIX-COFFEERESEARCHANDTRAINING INSTITUTEOFKENYA

• 69—EstablishmentoftheInstitute.
• 70—Headquarters.
• 71—PowersoftheInstitute.
• 72—Membership of the Council of theInstitute.
• 73—Term of appointment.
• 74—Vacationofoffice.
• 75—Functions of theInstitute.
• 76—Power to co-opt.
• 77-ConductofbusinessoftheCounciloftheInstitute.

• 78-RemunerationofmembersoftheCouncil oftheInstitute.
• 79—Chief executive officer of the Institute.
• 80—Removalofthechiefexecutiveofficerof the Institute.
• 81StaffoftheInstitute.
• 82—Protection of members and staff from liability.
• 83—Common Seal ofthe Institute.
• 84—Signing Authority.

PART X-FINANCIALPROVISIONS OFTHE INSTITUTE

• 85-FundsoftheInstitute.
• 86—Powerstoraiseorborrowmoney.
• 87—Powertoinvest.
• 88-AnnualEstimates.
• 89—Accounts and Audit.
• 90—Annual report andpublication.
• 91—Financial year ofthe Institute.
• PARTXI-MISCELLANEOUSPROVISIONS
• 92—DisputesResolution Committee
• 93—Digitalization.
• 94—Requestforinformation.
• 95—Limitation oftheRight to accessInformation.
• 96—Disseminationofmarketinformation.
• 97—Penalties.
• 98-Exemptions.
• 99—Regulations.
• 100 -——Rights and obligations.
• 101 —Assets.
• 102 ——Legal Proceedings.
• 103 —Reference to written laws.
• 104 —-Previous authorizations.
• 105 —Staff.

106—Interpretation.

107—Consequential Amendments.

FIRSTSCHEDULE-CONDUCTOFBUSINESS ANDAFFAIRSOFTHE BOARD OFDIRECTORS

SECONDSCHEDULE-LICENCE,PERMIT ORCERTIFICATE.

THECOFFEEBILL,2023

A Bill for

ANACTofParliamentto providefor:the establishmentoftheCoffeeBoardofKenyaand the Coffee Research and Training Institute;the roles of the National and the county governments; theregulation,developmentandpromotionof the coffee industry; and for connected purposes.

ENACTED by the Parliament of Kenya, as follows-

PART1—PRELIMINARY

• 1.This Act may be cited as the Coffee Act, 2023.
• 2.In this Act—

"agent" means a person registered by the Board who may be appointed by a grower for purposes of facilitation of overseas direct sales with regard to logistics;

"association" means a registered group comprised of smallholder growers, co-operative societies, societies, estates, unions, millers, buyers, roasters or brokers, licensed by a relevant licensing authority;

"auction" means the auction system under which clean coffee is offered for sale at a coffee exchange and includes the place at which,or a facility by means of which, whether electronic or otherwise, offers or invitations to sell,buy or exchange coffee contracts are regularlymade on a centralized basis,but does not include--

• (a) theoffice or facilities ofacoffee buyer or service provider; or
• (b) the office or facilities of a clearing house;

"Board""means the Coffee Board of Kenya established under section 3;

"broker" means a person cleared by an exchange and licensed by the Capital Markets Authority,who may be accordancewiththeCapitalMarketsAct,toselltheir coffee on theirbehalf through an Exchange;

"buni" means coffee dried in the fruit or cherry but doesnot include hulled buni,alsoreferredto as clean Short title.

Interpretation.

Cap.485A.

coffee,heavy buni or light buni;

"buyer" means an incorporated company licensed by theBoard tobuycleancoffeeatanexchangeforexport, localsale orvalue additionor toimportclean coffeefor secondary processing in Kenya;

"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to agriculture;

"clean coffee"means coffeebean or dried seed ofthe coffeeplantseparatedfromnon-foodtissuesofthecoffee fruitwherethesilverskinisreducedtothemaximum possible extent;

"clearing house" means an entity approved by the Authority,and recognized as a clearing institution on behalf of a coffee exchange, providing the services of clearing and settlement of transactions and guaranteeing settlement on behalf of an exchange;

"clearing and settlement"means the procedure by which a clearinghouse acts as anintermediarybetween a buyer andseller for exchange traded transactions in order toreconcileordersbetweentransactingpartiesandensure the physical orfinancial settlement of the transaction;

coffee"meanstheplantbotanicallyknown ascoffea species(L.)andincludes thefruit,whetherontheplant or detachedtherefrom,theseedinform of either buni, parchment coffee, clean coffee, roasted beans or ground coffee;

"coffee dealer" means a person registered by the Board,a county government or theAuthority to deal in coffee asprovided under thisAct;

"coffee grower" a person who cultivates coffee in Kenya,is linked to a licenced pulping station,and may for purposes of licensing, include a co-operative society, coffeeunion,association or estate;

"coffee milling" means mechanical hulling or dehusking of coffee and includes grading of clean coffee;

"coffee product" means any product, extract or substance obtained or derived from coffee by any treatmentorprocess;

"coffee sales proceeds" means monetary consideration received at the direct settlement system in exchangefor clean coffee sold at an exchange or,where applicable, through direct sales;

"coffee standards" means the Kenya Coffee Standardsissued by theKenya Bureau ofStandards;

"coffee warrant"means an instrument prepared by thewarehousemanofwhichthepersonnamedtherein,or the lastendorseethereof,shall for all purposesbe deemed tobe the owner ofthe coffee towhichit relates;

"co-operative society" means a co-operative society registered under the Co-operativeSocietiesAct,;

"Council" means the Council of the Institute as providedforunderSection72;

"county executive committee member"means the county executive committee member for the time being responsibleformattersrelatingtoagriculture;

"direct sale" means a contractual arrangement between a registered grower,coffee co-operative society, society, coffee union, grower-miller or coffee estate and anoverseasbuyerforthesaleofowncleancoffeebased onmutuallyacceptedtermsandconditionsenforceablein lawandincludessettlementofcoffeesalesproceeds throughthedirectsettlementsystemonboardedbya coffee exchange;

"direct settlement system" means a banking facility providedbycommercialbanksregulatedby theCentral Bank ofKenya for clearing and settlementof coffeesales proceeds;

""estate"means an area of land or group of parcels of land under coffee not being less than five acres in size in aggregate or landunder coffeewhich hasbeen issuedwith a pulping stationlicence;

Companies Act andlicensed by theCapital Markets Authority as an exchange for trading in clean coffee;

"Institute" means the Coffee Research and Training Instituteestablishedundersection69.

"licensing authority" means the Board, the county government or the Capital MarketAuthority as the case may be;

"liquoring" means analysis of clean coffee to determine the attributes and qualityofcoffeeforpurposes Cap490

Cap486

of trade;

"out-turn number" means an identifying number issued by a miller inrespect of coffee delivered to a mill forpurposes oftraceability;

"primary processing"means the process of removal of coffee pulp from cherry,fermentation,washing and dryingtothecoffeestandardmoisturecontenttoobtain parchment;

"prompt date"means a date specified in the sales catalogue,notbeingmore thanfiveworking daysfrom the date of the sale, for the payment of coffee sales proceeds by a buyer or a roaster;

"pulping station"means a specified place where primarycoffeeprocessingisundertaken;

"sales catalogue" means a standard document in thepresence ofa commercialmiller and in consultation with an exchange, for sale of clean coffee at an exchange;

"secondary processing"r meansparchmentdehusking, polishing, grading and may include roasting, grinding andpackagingof clean coffeebeans;

"small holder"means a grower cultivating coffee in a smallparceloflandorinsmallparcelsoflandwhodoes not possess his own pulping station;

""sweepings"means the balance of coffee samples in anexchangesampleroomandspillagescollectedfrom millers'milling activities for sale at an exchange,the proceeds of which are paid to the respective growers on pro-rata basis;

"warehouse" means a facility registered by the Board and licensed by a county government for the storage of coffee,andwhich is specifically designed toguarantee the quality and safety of the coffee;

"warehouse operator" means any person registered andlicensedbytheBoardwhoowns,leasesorisincharge ofawarehousewherecoffeeishandledandstoredfor reward or profit;

• 3.The objects of thisAct are to—
• (a) promote a globally competitive coffee industry;

Objects.

• (b) regulate the coffee sector;
• (c) provide a framework for the registration and licensing of various players within the coffee sector;
• (d) delineate the roles of the National and County Governments in theregulation,development and promotion of the coffee sector;
• (e) promote the vertical integration of the coffee value chain at the production level for the purpose of achieving economies of scale and managing risk;
• (f)promoteevidencebasedcoffeeresearchand the deliveryofextension servicesforthe development ofthe coffee sector;
• (g) provide a framework for -
• (i)the establishment of a coffeedevelopment levy; and
• (ii) the sustainable funding of the coffee sector; and
• (h) provide amechanismfor disputeresolution within the coffeesector.

PARTII-THECOFFEEBOARDOFKENYA

4. (l) There is established the Coffee Board of Kenya.

(2)The Board shall be a body corporate with perpetual succession and a common seal andshall,in its corporatename,becapableof

• (a) suing and being sued;
• (b)purchasingorotherwise acquiring, holding, charging and disposing of movableand immovable property;
• (c)borrowing and lending money; and
• (d) doing or performing all other things or acts necessaryfortheproper performanceof its functions under thisActwhich may lawfully be done or performed by a body corporate.
• 5.(1)The headquartersof theBoard shall bein Headquarters.

Establishment of Board.

Nairobi City County.

(2) The Board may establish such branches inKenya asit may considernecessaryfor the efficientperformance of its functions.

6.(1) The Board shall have all the powers necessary for theproper performance of its functionsunder this Act and in particular, but without prejudice to the generality of the foregoing,theBoard shall have power to

• (a) enter into contracts;
• (b) manage, control and administer the assets of the Board;
• (c)receive gifts,grants, donations or endowments madetotheBoardandmakedisbursement therefrom in accordancewith theprovisions of this Act;
• (d) subject to the approval of the Cabinet Secretary for the timebeingresponsibleformattersrelating to finance, invest any of the Board's funds not immediatelyrequiredforthepurposes of thisAct, as it may determine; and
• (e)operateabank account intowhichallmonies received by theBoard shall bepaid in thefirst instanceandoutofwhichall payments madeby theBoardshallbemade.
• (2) The Board may, if it considers it necessary, associatewith a bodyor corporation designed to assist or promote the coffee industry.

7. (l) The management of the Board shall vest in a Board of directors. board of directors consisting of

• (a) a chairperson appointed by the President by notice in the Gazette;
• (b) the Principal Secretaryresponsible for agriculture or a designated representative;
• (c) the Principal Secretary for the time being responsiblefortradeoradesignated representative;
• (d) the Principal Secretary for the time being responsible for cooperatives or a designated

Powers of the Board.

representative;

• (e) twopersons of theoppositegender, representing smallholder coffee growers nominated by the umbrella body for coffee cooperativesocieties';
• (f) onepersonnominatedbythelargest association of estate growers;
• (g) twopersons of the oppositegender with knowledge of the coffeeindustrynominated by the Council ofCounty Governors; and
• (h) a chief executive officer appointed under section15whoshallbeanex-officio memberoftheBoard.
• (2) TheCabinetSecretary shall appoint the members under subsection (1) (e), (f) and (g)bynoticein the Gazette.

8. (1)A person is qualified for appointment as a Qualicationfor member of the Board under section 7(1)(a), (e), (f) and (g) appointment. if that person—-

• (a) is a citizen of Kenya;
• (b) holds, in the case of a person appointed under -
• (i) section 7(1)(a) and (g) a degree from a university recognized in Kenya; and
• (ii) section 7(1)(e)and (f)a certificatein secondaryschool education.;
• (C) has at least threeyears'experiencepreferablyin management in the coffee sector; and
• (d) meets the requirements of leadership and integrity set outin ChapterSix of the Constitution.
• (2)Aperson is not qualified for appointment if that person-
• (a)is convicted of a criminal offence and sentenced to a term of imprisonment of at least six months;
• (b) is a member of Parliament or county assembly; or
• (c) is adjudged bankrupt.

appointment.

9. The persons appointed under section 7(1) (a), (e), Termof (f), (g) shall serve for a term of three years renewable for onefurther term.

10. (1) A person ceases to be a member of the board Vacation ofoffice ofdirectorsifthatperson—

• (a) is absent from three consecutive meetings of the board without the permission of the chairperson;
• (b)becomes an officer, agent or member of staff of the board;
• (c) resigns in writing addressed, in the case of the chairperson,to thePresident,and inthecase of any other member,to the Cabinet Secretary;
• (d) is convicted of a criminal offence and sentenced to a term of imprisonment of at least six months;
• (e) is declared bankrupt;
• (f)is unable to perform the functions of office by reason of mental or physical infirmity; or
• (g) dies.

11. (1) The Board shall-

• (a)regulateandpromotethedevelopmentof the coffee industry;
• (b) consider applications for the issuance of permits andlicencesunderthesecondscheduletothis Act;
• (c)register coffee dealers as set out in the second schedule;
• (d) make recommendations to the Cabinet Secretary for, and oversee the implementation of strategies, funding models,plans and policy for the coffee sector;
• (e) collect, collate and maintain a data base and disseminate information on the coffee industry;
• (f)conduct national and international coffeemarket intelligenceandsurveystoinformpromotional and branding strategies including the application of the Kenya Coffee Mark of Origin;
• (g) establish linkages with various government agencies, the Institute and other research

Functions of the Board.

institutions for thedevelopmentof thecoffee industry;

• (h) develop and implement a framework for the capacity buildingof playersinthe coffee industry;
• (i)promote the development of regional appellations for Kenyan coffee;
• (i)develop and enforce the coffeeindustrystandards andindustrycodeofpracticeincollaboration with theKenyaBureau ofStandards;
• (k) maintain and cause to be published an up to date register of coffee dealers ;
• (l)undertaketechnologytransferandprovide technical assistance tocountygovernments on mattersrelating tocoffee;
• (m) conduct surveillance and enforce compliance with relevant policies,standards and legislation on the coffee sector;
• (n)co-ordinate inter-agency representation in internationalcoffeefora topromoteincreased marketshare ofKenyan coffee;
• (o) regulate the marketing and trading of coffee;
• (p) source markets and market Kenyan coffee in the internationalmarket";and
• (q) carry out such other functions as may be assigned by the CabinetSecretaryor conferred under any otherlaw.

(2) The Board shall,in the performance of its functions under this Act, consult and collaborate with the Council of County Governors.

• 12.(1) The board of directors may establish such committeesas itmayconsidernecessaryfor theefficient performance of its functions and the exercise of its powers under this Act.
• (2) The board of directors may co-opt to sit in the committees established under subsection (1) such other persons whose knowledge and skills are necessary for the performanceofthefunctionsoftheBoard.

13.The board of directors may, by resolution, delegateto anycommitteeof theBoardorto anymember, Committeesof the board of directors.

Delegationby the board of directors.

officer,employee or agent of theBoard,the exercise of anyof thepowersor theperformanceof anyof the functions of the Board under thisAct or under any other writtenlaw.

14.Themembersof theboardof directors shall be paid suchremuneration or allowances as theCabinet Secretaryshall,inconsultationwiththeSalariesand Remuneration Commission,determine.

15.(1)There shall be a chief executive officer of the Boardwhoshallbecompetitivelyrecruitedandappointed bytheboardofdirectorsonsuchtermsandconditions as theboardofdirectorsshall determine.

(2)A person is qualified for appointment under subsection(1)iftheperson-

• (a) holds a degree in agriculture, business, law, administration or otherrelevantdegree froma university recognized in Kenya;
• (b) has at least five years' experience in a position of management;and
• (c) meets the requirements of Chapter Six of the Constitution.

(3) The chief executive officer shall serve for a term of threeyears and shallbe eligiblefor appointmentfor one further term ofthreeyears.

16.The chief executive officer shall be the secretary to theBoard and shall,subject to the direction of the board ofdirectors--

• (a)beresponsible for the day to daymanagement of the affairs oftheBoard;
• (b) manage the funds,property and affairs of the Board;
• (c)be responsible for the management of the staff of the Board;
• (d)oversee and coordinate theimplementation of the policies, programmes and objectives of the Board;
• (e)cause to be prepared for the approval of the board ofdirectors-
• (i)thestrategicplanandannualplanof the

Remuneration of members ofthe boardof directors.

Chiefexecutive officer.

Functions of the chiefexecutive officer.

Board; and

• (ii)the annualbudget and audited accountsofthe Board; and
• (f) perform such other duties as may be assigned by the board of directors.

17.Thechiefexecutiveofficer shallcease tohold office if the person——

• (a) resigns in writing, addressed to the board of directors;
• (b)isconvictedofacriminaloffenceandsentenced toatermofimprisonmentofnotlessthansix months;
• (c)is found liable for gross misconduct or abuse of office in contravention of the Public OfficersNo.4of2003. EthicsAct or any other relevant law;
• (d)is declared bankrupt;
• (e)is unable to perform the functions of office by reason of mental or physical infirmity; or
• (f) dies.

18. The Board may employ such officers, agents and staff as are necessaryfor the proper and efficient discharge of thefunctionsof theBoardunderthisAct and uponsuch termsandconditionsofserviceastheBoardmay determine.

19.Liability shall not attach tomembers of the Board, officers, agents or staff for loss or damage incurred by a person as a result of an act or omission done ormade in good faith and without negligence in the performance or exerciseor theintendedperformance or exerciseof any duty or power imposed by or conferred under this Act.

20.Theaffixingof the common sealof theBoard shall be authenticated by the signatureof the chairperson and the chiefexecutive officer or apersondesignated by theboardofdirectors.

21.Alllettersandinstrumentswrittenormadebyor on behalf of the board of directors,other than those required by law tobe under seal,and all decisions of the board of directors, shall be signed under the hand of the chiefexecutiveofficerorintheabsenceofthechief Removalofchief executiveofficer.

StaffoftheBoard.

Protectionof members and staff from liability.

Common seal of the Board.

SigningAuthority.

executive officer,a person authorized by theBoard.

• 22.Thebusinessand affairsoftheboardofdirectors shall beconducted inaccordancewith theFirstSchedule.

PARTIII-ROLEOFCOUNTYGOVERNMENTS

23. (1) A county government shall- 2. (a) implement the National Government policy relating to coffee; 3. (b) maintain an up to date register of coffee growers, nursery operators,coffee cooperative societies, coffee associations, and coffee estates in that county; 4. ()consider applications for the certificates,permits andlicenses enumerated under the second schedule to thisAct; 5. (d) enforce national and county legislation on coffee industry code of practice,policies and guidelines oncorporategovernanceincoffeegrowers' institutions; 6. (e)offer andco-ordinatethedeliveryofextension services on sustainable production, primary processing ofcoffeeandclimatesmart agriculture; 7. (f) inspect nurseries, pulping stations, warehouses, millersandroasters slocatedwithintheir respective counties; 8. (g) regulate the movement of coffee through the issuanceofmovementpermits forbuni, parchment and cleancoffeewithin thecounty and from the county to warehouses situatedoutside the county; 9. (h) in collaboration with law enforcement agencies, enhance securityin coffee growing areas;and 10. (i)monitorandreportincidencesofpestsand diseaseoutbreakstotheBoardandtakeactionin collaborationwiththeBoardandotherrelevant government agencies. 11. (2)A countyexecutive committee member may impose such levies andfees as maybenecessaryfor the registration and issuanceof licences or theprovision of

Conductof business of the Board.

Roleof county govemments.

services in accordance with the respective county legislation andsuchstandards as maybeprescribedby the Cabinet Secretary.

(3)The Cabinet Secretary shall,in consultation with theBoard and thecountyexecutivecommitteemembers prescribe standards and guidelines for the setting of levies andfeesbycountyexecutive committeemembersunder subsection (2).

24.Each county government may enact county specificlegislation setting out the-

• (a) criteria for registration under section 26;
• (b) criteria for the issuance of permits and licences by an applicant within the respective county;
• (c)informationrequiredtobesubmittedbyan applicant for a permit or licence;
• (d) process of determination of an application for a permit or licence;
• (e)conditions for theissuance or renewal of a licence under this Act;
• (f)groundsfor therejectionof an application or cancellation of a licence issued under this Act;
• (g)process of issuance of a licence to an applicant for a permit or licence; and
• (h)process of applicationfor therenewal of permits orlicencesandrevocationofalicenceissuedto anapplicantunderthisAct.
• 25.(1)A person shall not operate a-
• (a)pulping station or carry out hulling activities;
• (b) coffee growers'mill;
• () coffee roaster
• (d) warehouse; or
• (e)commercial coffee miller,

unless thatpersonhas applied for,andobtained a licence from the respective county government in which theoperationistobeundertaken.

(2)An applicant for a licence under subsection (1) shall submit an applicationin theprescribedformtogether with theprescribedfeesto therespectivecounty executive Enactment of county specific legislation.

Licencing of coffee operations.

committeememberforconsideration.

(3)The countyexecutivecommitteemember shall consider the application andmayissuetothe applicant a licence in accordance withthe respective county legislation.

PARTIV-REGULATORYPROVISIONS

26.The Board and county governments shall regulate the production and processing of coffee with a view of—

• (a) promotingproductivity;
• (b) promoting access tomarkets;
• (c) facilitatingprovisionofinfrastructureincluding farm inputs;
• (d) providing post-harvest services;
• (e) providing extension services;
• (f) providingincentivestofarmers;and
• (g) providing credit facilities.

(2)TheBoard and county governments shall maintain the necessarystatistical informationwithrespect to the coffee sectorfor proper planning.

27.(1) A coffee grower, nursery operator, grower miller, commercial miller, coffee roaster, cooperative society,coffee association or coffee estate shall register with the respective county government where they are based.

(2) Despite subsection (1l), a grower who is a registeredmember of a coffeecooperativesociety or association which is registered by a county government, shall be exemptedfrom registrationbythat county government.

(3)Subsection (2)shallapply to agrower on condition that the cooperative society or association is registered in the same county as that which the grower is carrying out business.

(4)A registered cooperative society or association shall-—

(a)submit a register of its members to the Regulation of production and processing of coffee.

Registration.

respectivecountygovernmentatthe beginning of each calendar year; and

• (b) furnish the county government with informationon anychangeofmembership within thirty (30) days of a change of membership.

(5)A county government shall not charge any fees for the registration of an applicant under subsection (1).

(6)Each county government shall keep and maintain the register under subsection (1) for statistical purposes.

• (7) A register under subsection (6), shall include

2. (a) the name of the coffee grower, nursery operator, miller,coffee roaster,cooperative society,coffee association or coffee estate; 3. (b) the location,size and parcel number of the land onwhich thebusinessislocated;and 4. (c) such other information as the Board may prescribe. 5. (8)Eachcounty government shall submit tothe Board a copy of the register under subsection (6).

28. (1) A person who intends to perform any function under thisActforwhich alicence or apermit isrequired shall submit to the relevant licencing authority specified in theSecondSchedule-

• (f) an application for a licence or permit, in the prescribed form;
• (g) such information as may be prescribed; and
• (h)the prescribed fees.

(2) A licencing authority shall consider an application within such period, not exceeding fourteen days, as may be prescribed in the respective legislation, and may -

• (a) grant anapplicationfor alicence or permit unconditionally;
• (b)granttheapplicationsubjecttoconditions specified in the respective licensing legislation; or
• (c) refuse the application.

(3)Alicensingauthorityshall inform the applicant of its decision under subsection (2)within fourteen days of Licensing.

the decision.

(4)Wherealicensing authorityrefusestogrant an application,the licensing authority shall,in itsnotification under subsection (3), specify the reasons for the refusal.

(5)A licensing authority shall, at least thirty days before granting a newlicence under this Act, give notice of theproposedgrant bynoticein the Gazetteand in such other manner as theauthoritymaydetermine.

(6) The licensing authority shall,in issuing the notice undersubsection(5)—

• (a)specify the name or other particulars of theperson or class ofpersonstowhom thelicenceistobe granted;
• (b) state the purpose and the date for which the licence is proposed tobeissued; and
• (c)invite objections to the proposed grant of licence anddirect thatsuchobjectionsbelodgedwith the licensing authoritywithinfourteendaysfrom the dateofthenotice.

(7) The licensing authority shall consider any objection submitted to it under subsection(6) and may grant the licence applied for, subject to such terms and conditions as the licencing authorityshall consider appropriate.

(8)A licence issued under this Act shall not be transferable.

(9) The holder of a coffee buyer's licence or an entity associatedwith a holder of thelicence shall not carry on the business of a commercial miller,broker,roaster, agent orwarehouseoperator.

(10) A buyer's licence shall not be construed as authorizing a personto engage in direct sale of coffee or coffee products.

(11) A holder of a commercial miller's licence or any other entity associatedwith such holder shall not carry on the business ofabuyer,broker,roaster,or agent.

(12)Alicensingauthorityshallnotissuealicence to a personwhose effect wouldresult inin the contravention of subsection (9), (10) or (11).

(13)A person who contravenes the provisions of subsection (l) commits an offence and is liable,on conviction,to a fine not exceeding one million shillings or twice the value of the coffee or coffee product,whichever is greater,or toimprisonmentfor a term not exceeding two years orboth.

29.The following licences shall be issued by the Authority under the Capital MarketsAct

Licences issuedby theAuthority Cap.485A.

• (a)coffee exchange licence authorising a person to conduct the business of a coffee exchange;
• (b) a broker's licence authorising a person to offer clean coffee for sale at an exchange on behalf of the grower.

30.(1) A person shall not operate as a cupping laboratory, liquorer, coffee buyer, coffee importer, agent orwarehouse operator unlessthepersonislicensed or issued a registration certificate or a permit by the Board upon satisfaction of the prescribed conditions.

(2)A person shall not conduct the business of a coffeeexchangeorofferbrokerageservicesat an exchangeunlessthatpersonislicensedbytheAuthorityin

(3)Apersonwhocontravenes theprovisionof this section commits an offence and is liable,on conviction, to a fine not exceeding five million shillings or to imprisonmentfor a term not exceeding threeyears or both.

31.A licence holder shall act in the best interest of coffee growers and adhere to prescribed conditionsfor the issuance of a licence and contractual obligations.

32.A licence holder shall submit monthly returns to the relevant licensing authority in the prescribed form.

33.(1)A person shall not transport clean coffee unlesssuchperson-

• (a)holds alicence issued pursuant to section 28 of this Act; and
• (b)has applied for, and obtained a movement permit issued,in thecase of
• (i) buni and parchment, by the respective county of origin;

Requirementsfor certificates,licenses and permits.

Obligationsof licenseholders.

Retums.

Movement permits.

The CoffeeBill,2023

• (ii)movementof cleancoffeefrom thecoffee mills to the warehouses,by the respective countygovernment;and
• (ii)movement of clean coffeeby buyers upon purchase, movement of purchased clean coffeetowarehousesbymillers,ormovement of clean coffee for export or import, by the Board.

(2)A coffee movement permit issued under subsection (1) shall be in the prescribed form.

(3)Subsection (1)(b)(i) shall not apply to a smallholder moving gcherrycoffeeproducedbythe smallholder betweenthefarm andthe pulping station where they are registered.

(4)A person transporting coffee under subsection (1) shall-

• (a)have,in his or her possession at the time of transporting the coffee,the original movement permit issued by the respective licensing authority;and
• (b)ensure that the vessel used to transport the coffee conformstotheprescribedcoffeestandards.

(5)The respective county executivecommittee member shallmonitor themovementofcherryand parchmentcoffeebetweenfarmsandstores andthe movement of clean coffee and hulled buni to the market and shall,for thispurpose-

• (a)prescribe,in county legislation,guidelines for the safemovementofcherryandparchmentcoffee; and
• (b) put in place measures to curb illegal dealings in coffeeor coffeeproducts.

(6)Apersonwhomoves coffee contrary to thisAct commits an offence and is liable,on conviction,to a fine not exceeding five hundred thousand shillings,or to imprisonment for a term not exceeding one year,or to both.

34.A licence or permit issued under this Act shall be in the prescribedform.

35.(1) A licence or permit issued by the licensing Form oflicence,or pennit.

Duration oflicence.

authority shall expire on 30th June of everyyear and a licenseholderwishing torenewthelicencemay applyby 1st June preceding the expiry of the licence.

(2)Notwithstanding the provisions of sub-section (1), a late application maybe made uponpayment of a late applicationfee as maybeprescribed.

36.(1)A licensing authority may cancel a licence or permit if the licensee --

• (i) fails to meet any condition imposed by the licencing authority;
• failstocomplywiththeprovisionsof the licencinglegislation;or
• (k) surrenders the licence or permit to the relevant licensing authority togetherwith a notice setting outarequestthatthelicencebecancelled.

37.(1)Eachcountyexecutive committeemember shallsubmittotheBoard,attheendofeachmonthor within such timelines as maybeagreeduponwith the Board, a report on the registered and licensed coffee growers and dealers within the respective county.

(2) The Board shall submit to the respective county executivecommitteememberareportontheregistered and licensed dealers and other service providers within the respectivecountyattheendofeachmonthorwithinsuch timelinesasmaybe agreeduponwith therespective countyexecutivecommitteemember.

Appeals.

38.Whereanapplicantisdissatisfiedwiththe decision of a licencing authority not to,issue a licence, to revoke or cancel alicence under thisAct,the applicant maymakeanapplicationtotheDisputeResolution Committeeestablishedundersection92.

PARTV-PRODUCTIONANDPROCESSING

• 39.(1) TheInstitute shall

Coffee production.

• (a) disseminate, in collaboration with the county governments, coffee production and processing technologies;
• (b)undertakethepropagationof coffeeplanting materials;
• (c)supervise,in collaboration with the county governments,nursery operators undertaking the

Cancellation of licenceorpermit

Submissionof reports.

business of propagating planting materials;

• (d) issue certified coffee seeds or seedlings for multiplicationin coffeenurseriestocoffee growers orfor export;
• (e)map out areas suitable for coffee production in Kenya; and
• (f) undertakecapacitybuilding for rthecounty governmentsand other players soncoffee production and processing.

(2) The respective county executive committee members shall undertake soil mapping and analysis to determinenutritionalrequirementsforcoffeeproduction.

40.(1) A person shall not import coffee planting materials unless such aperson been registered bythe Board.

(2)The Board may, upon application and in collaborationwith theKenyaPlantHealthinspectorate Service and any other relevant agency,register a person to importcoffeeplantingmaterialfornurseryestablishment subjectto theprescribed conditions.

41.(1) The Institute shall,in collaboration with the respectivecountyexecutivecommitteemember,undertake analysis of thefarminputsto ascertain compliance with theprescribedstandards.

(2)The respective county executive committee member shall establish such farm inputs schemes as may benecessaryto enhance coffeeproduction.

(3)The National Government, in ncollaboration council of county governors, may put in place the infrastructurenecessaryfortheproduction and availability ofqualityfarminputsfor coffeeproduction;

(4)The county executive committee members shall monitorandoverseetheimplementationandcompliance with standards byfarm input stockists.

42.(1) A co-operative society comprising coffee growers shall keep and maintain a register of coffee growers and the number of coffee trees planted or uprooted by each of its members in theprescribedform.

(2)A co-operative society shallsubmit tothe respective county executive committeemember,annually, a record of the information maintained by the society Importationof coffee planting materials.

Farm inputs.

Notification after planting,uprooting coffee or change of detailsof farm or estate.

under subsection (1).

(3)Each countyexecutive committeemember shall keepandmaintainarecord,intheprescribedform,ofthe area under coffee cultivation and information regarding uprooted coffee in the county.

(4)Thecountyexecutivecommitteemember shall submit to the Board, annually,the record kept under subsection (3).

43.(1) The Board shall register certification schemes tomonitorcompliancewiththecoffeestandards.

(2) A coffee grower, miller or any other player in the coffeevaluechainmayseekcertificationbytherespective licencing authority to ensure the quality of coffee,the quality of service and secure market confidence.

(3) The Board shall keep and maintain a register of certification scheme operators in each county.

(4) The Board shall, for the purpose of subsection (2),

• (a)keepandmaintainaregisterofcertifiedscheme operators;and
• (b)submit,a copyof theregister totherespective countyexecutivecommitteemember.

(5)Eachcountyexecutivecommitteemembershall monitortheoperationsofcertificationschemesand periodicallyadvisethecoffeegrowerswithinthe respectivecountyand theBoardonbest practiceand performanceofascheme.

(6) A certification scheme under subsection (l) shall providetheparticularsofcertificationservices, competenciesoftheirschemeoperators and thebenefitsof thecertificationschemestocoffeegrowers.

(7) Certified coffee shall be identified and labelled accordingtotherespectivecertificationschemefor traceability and marketing.

(8) A miller shall, in the case of certified coffee, specifyinformationrelating to the certified coffee in the salescataloguemaintainedbythemiller.

(9)A coffeemiller shall,before offering the coffee for sale in an exchange, provide proof of certification.

Requirements relatingtocoffee processing.

44. The processing of coffee shall be carried out at designated,standard approvedfacilities andin accordance Certification of Kenyan Coffee.

with theNational Standards andIndustry Codeof Practice.

• 45.(1) The Board shall establish a coffee traceability system in the prescribed form.
• (2)Aperson who operates a pulping station or coffeemillshall complywiththeprescribed traceability system established by the Board under subsection (1).
• (3)A commercial miller shall-
• (a)ensurethat tthegrowerorgrower's representativeis givenreasonablenoticeto be present during the milling process;
• (b) take out comprehensive insurance cover against fire, theft and other risks for all coffeein its possession and custody;
• (c) account for mill spillage or sweepings and allother coffeeby-products to the growers and the Board;
• (d) digitize its operations to ensure weight precision, timely dissemination of information and protection of growers'data;
• (e)submit returns on coffee received and milled to the Board and the respective county government;and
• (f)complywiththeprescribed standard coffee grades.
• 46.(1) A cooperative society or a coffee union-
• (a)shall in charging a fee to its growers, adhere to the society's budget and not exceed ten percent ofthegross earnings from the coffee sales;
• (b) despite having a registered brokerage firm, mayengage theservicesofaprivate

Requirements relatingtocoffee traceability and a disclosures.

Resolution by a cooperativesociety or a coffee union.

brokerage firm; and

• maypass a resolution toborrowmoney.
• (2) A resolution under subsection (1) (b) and (c) shall be made at a general or special meeting convened by the commissionerfor cooperative development andbe supported by at least three quarters of its members.
• (3) The commissioner for cooperative development shall take andkeep a record of the proceeding of the meeting,which record shall include a list ofthe members presentand theresolutionsmade.

47. (1) Every contract for milling of coffee shall be in writing and shall contain such information as may be prescribed.

• (2) A commercial miller shall --
• (a) ensure that the grower or grower's representativeisgivenreasonablenoticeto be present during the milling process;
• (b)takeoutcomprehensiveinsurancecover against fire, theft, and other risks for all coffeeinitspossession and custody;
• (c) account for mill spillage or sweepings and all other coffeeby-products to thegrowers and the Board;
• (d) digitize its operations to ensure weight precision,timely dissemination of information and protection of growers' data;
• (e)submit returns on coffee received and milled to the Board and the respective county government; and
• (f)comply with the prescribed standard coffee grades.
• 48.(1) A coffee miller may bulk parchment or buni Bulking ofcoffe.

Section3of Cap 490.

Millingservices.

coffee of the same quality and characteristics in order to attainmillablequantities.

(2) A coffee miller who bulks coffee shall avail information, in the prescribed form, to an exchange and the direct settlementsystemprovideron theproportions of the bulked coffees for purposes of processing payments.

(3) The Board and the respective county executive committee member shall,separately or jointlyundertake regularinspectionstoensure compliancewith thisActby the coffee millers.

(4)Acoffeegrower maydeliver coffee samplesnot exceedingfivehundred grams ofparchment orbuni for independentqualityanalysisbyalaboratorybefore deliveryto a commercial coffeemiller.

(5)A laboratory towhich a sample is submitted under subsection(4)shallissue tothecoffeegrower a reportonqualitycomplianceintheprescribedform.

(6)A coffee miller shall remit two hundred- and fifty-grams samplesfor each grade of an out-turn tothe Boardfor quality analysis and assessment of conformity with coffeestandards.

(7)A co-operative society or association comprising smallholder growersthat intends to obtainmillingservices shallcompetitivelyprocure theservicesofamiller or otherserviceproviderstowhomthecoffeeisintendedto be delivered for milling.

(8)Any charges imposedfor thedeliveryof services toacoffeegrowershallbecommunicatedinthe prescribedformto thedirectsettlementsystemprovider before the sale of coffeefor thepurposeof settlement after thesalehasbeen conducted.

PARTVI-COFFEETRADINGAND MARKETING.

49.(l) Kenya Coffee may be offered for sale Coffee trading through——

• (a) auction in an Exchange;
• (b) direct sales;
• (c) international exchange; or
• (d) such other method as the Cabinet Secretary in consultation withcountygovernments and the

Board may prescribe.

(2)A buyer,aroaster,or a grower miller licensed by the relevant licensing authority, or a broker appointed by the grower, may trade at an exchange in accordance with this Act and any other law governing trade in an exchange.

50.(1) A licensed coffee grower may undertake, in the prescribed manner, a direct sale in coffee.

(2)Beforea contractfordirectsaleis completed,a sample of notmore than twohundred andfiftygrams of the coffee intended for sale,shall be submitted to an exchange for quality analysisand price discovery.

(3)An exchange in which the sample is delivered under subclause(1)shall withinfourteendays,issueto the coffeegrower with a report on the quality and the price discovery in the prescribed form.

(4)Despite the provisions of subclause (2) and (3), a contractforfuturesalesshallnotbesubjectedtopriceand grade discovery at an exchange.

(5)Theprice atwhich a licensedcoffeegrower offers coffeeforsaleundersubsection(1)shallbearafavorable comparison to the price at an exchange.

(6)Alicensedcoffeegrowershallsubmitmonthly returns to the Board,in the prescribed form,on sales undertaken under subsection (l) including ——

• (a) a copy ofthe contract;
• (b) the coffee grade;
• (c) the coffee quantity;
• (d) the coffee price;

(e) details of a certification scheme, where applicable;

• (f) quality report;
• (g) mode of payment; and
• (h)a dispute resolution clause.

International and localdirect coffee sales.

51.(1) The Capital Market Authority shall licence an exchangefor the purposes of trading coffee.

• (2)An exchange shall—
• (a) manage its auction floor, the central sample room, the information registry and the direct settlementsystem;
• (b)maintain records relating to coffee sales, coffee samples and sweepings;
• (d)disseminatemarketinformationfor every auction and an analysis of performance on, weeklyandmonthlybasis;and
• (c)avail sales catalogues tointerestedparties in accordancewith the Capital MarketsAct;
• (e)carry out such other function as the Cabinet Secretaryfor trademayprescribe.

(3)The proceeds of the sale of coffee at an Exchange shall be deposited in a directsettlement system established in accordancewith the Capital Markets Act.

52.(1) A broker or agent appointed by growers and otherservice providersshallnot receivecoffeesale proceeds on behalf of the growers.

(2)Acoffeewarrantorawarehousereceiptissuedby a warehouse operator to adepositor of coffeeshall be transferabletoanewholderwhohaspurchased thecoffee andis entitled to takeitsdeliveryuponpresentationof the coffeewarrant or thewarehouse receiptendorsedby an exchangetothewarehouseoperator.

(3)A personwho contravenes the provisions of this section commits an offence and is liable,on conviction,to a fine not exceeding five hundred thousand shillings, or to imprisonmentfor a termnot exceeding sixmonths,orto both.

53.(1)A grower or abroker appointed by a grower shall, in the presence of a commercial miller and in consultation with an exchange,prepare a sales catalogue forallthecoffeeinalicencedwarehouseinaccordance with theAct.

(2)A sales catalogue shall contain information on the promptdateandsuchother particularsas maybe Licensing and functions of an Exchange.

CAP485A

Management ofan exchange and settlementofcoffee sales proceeds

Sales Catalogue prescribed under this Act.

54.(1)All coffee shall be stored in warehouses licensed by the respective county governments.

(2)Acountyexecutivecommitteemembershallnot designatepremises as a coffee warehouse unless the premises have been inspected,approved and licensed in accordance with this Act and other relevantlegislations.

(3)Alicensed warehouse shallconform tothe standardsprescribedbytheKenyaBureauofStandards.

(4) TheBoard and county governments shall inspect warehousesandmonitorwarehousingactivitiesona regularbasis.

• (5)Awarehouse operatorshall—
• (a) insure all coffee in his or her warehouse or under his or her custody against fire,theft and other insurable risk;
• (b) not removeor causetobe removedfroma warehouse,coffeeunlesstheoperatorhasapplied for,andobtainedan endorsedcoffeewarrant or warehousereceipt as thecasemaybe;and
• (c)account foranyweightorqualitylosstothe respective grower, agent, buyer or roaster.

(6)Apersonwhooperates awarehousecontraryto thisActcommitsan offence andisliable,onconviction,to a fine not exceeding three hundred thousand shillings, or to imprisonmentfor a term notexceedingsixmonths,or to both.

55.(1) A grower or an agent representing the grower may offer coffeefor sale,in theprescribed manner,in an internationalexchangeandmayforthispurposeenterinto awrittencontractforfuturesale.

• (2) A contract under subsection (1) shall include the followinginformation-

2. (a)the name of the exchange 3. (b) the quality of coffee; 4. (c) the quantity of coffee; 5. (d) the mode of payment;

Coffee warehousingin designated warehouses.

Saleof coffee in an international exchange.

• (e) the mode and place of storage;
• (f) the details ofinsurance cover; and
• (g)a dispute resolution clause.
• (3) The contract under subsection (1) shall be submitted totheBoardwithinfourteen daysofthe signingofthecontract.
• (4) The Cabinet Secretary shall prescribe regulations on sale of coffee at an international exchange.
• 56.The Board may, for the purpose of trading in the international coffeemarket andauction—
• (a) issue a coffee trading licence to a grower or a buyer;and
• (b) in collaboration with the Cabinet Secretary for trade,issue tradeinsurance toa cooperative society toindemnifyitfrom anyrisk on any coffeeexportedinaninternationalmarketor auction.
• 57.(1) A person shall not export coffee or cause any coffee to be exported unless such person has—
• (a) applied for, and obtained, a phytosanitary certificate from the Kenya Plant Health InspectorateService;and
• (b)notification andregistration of direct sales contract,certificate oforigin,certificateofquality and any other relevant approvalsissuedby the Board.
• (2)The Board shall authorize theimportation of coffee through the issuance of import permits or a buyer's licence.
• (3) Clean coffee imports shall—
• (a)beaccompaniedby thecertificateoforigin and phytosanitary certificate issued by the country of origin and adheretoKenyan coffeestandards;and
• (b) beinspectedandissuedwith Phytosanitary Certificate bythe Kenya Plant Health Inspectorate

Coffe trading licence.

Export andimport ofcoffee.

Service.

(4) Clean coffee which consists only of a sample or a parcelnotexceeding twentykilogramsinweightand whichmeetstherelevantlicensing andcertification requirementsshallnotrequireabuyer'slicensefromthe Board.

58.(1) A person who blends any or various grades of coffeeproducedinKenyawithanyothercoffeesproduced outsideKenyashalldeclare thepercentageofKenyan coffeein theblend.

(2)A person who contravenes subsection (1) commits an offence and is liable, on conviction,to a fine not exceeding twice the value of the blended coffee, or to imprisonmentfor a termnotexceeding oneyear,or to both.

59. The trading activities at an exchange shall be compliantwithrelevantlawsthatdeterunfairtradingand anti-competitive practices.

PARTVII-QUALITYASSURANCE.

60.(1)The Board and the respective county executivecommitteemembersshallcollaborateinthe enforcementofcoffeeindustrystandardsalongthevalue chain for purposes of quality assurance.

(2) The Board, in consultation with an accredited universityofhigherlearningandindustrystakeholders may develop a training curriculum,conduct examinations andjointlyissue certificatesfor coffee liquorers.

(3)TheBoardmayenter intoamemorandumof understandingwithanaccredited'universityforthe training and administration of liquorers'examinations.

(4)Aperson shall not offer liquoring servicesunless such person is certified as a liquorer has applied for, and obtained a practicing licencefrom theBoard.

(5)The Board shall, in collaboration with the respectivecountyexecutivecommitteemembersestablish cupping centers in the counties for the purpose of conducting coffee quality analysis and capacity building.

(6) The Board shall carry out assessments on coffee qualitymaintenance at anypremises inwhichthe processingofcoffeeiscarriedout alongthevaluechain.

Prohibition against blending

Anti-competitive practices.

Qualityassurance forcoffeeindustry.

(7)TheBoard may sample coffee at any stage of the value chain to ascertain permissible pesticides residue levelsforcompliancewithsetnationalandinternational standards.

(8) The Board, in collaboration with the respective countyexecutivecommitteemembershall-

• (a) monitor maintenance of pesticide spraying recordsbycoffeegrowerstoenforcecompliance with thepermissiblepesticidesresiduelevels in coffeebeans;and
• (b) inspect coffee storage bags to check against potential contamination and monitorwholesalers, suppliers,manufacturers and importers to ensure compliancewithsafetystandards.

(9)The Institute shall in collaboration with the county governments and other relevant bodies conduct periodic surveillance on the application ofpesticides to ensurecompliancewithsetstandards andbestpractices.

61.(l) The Board and the respective county executive committee members shall,by notice in the Gazette,appoint inspectors for the enforcement of the provisions ofthisAct.

(2) The Board and therespective county executive committee members may,separately or jointly,conduct inspection of coffee farms, coffee nurseries, pulping stations,coffee mills, warehouses, cupping laboratories, roasters or coffee buyers'vessels transporting coffee to monitorcompliancewiththerequirementsofthisAct.

(3) A smallholder, a grower, a pulping station operator,atransporter,amiller,awarehouseoperatorora buyershallaccordaninspectoraccessandnecessary assistanceforeffectiveinspection.

(4) A person who fails to accord an inspector access to premises and information commits an offence.

62.(1)A person importing coffee into the country shall--

• (a)ensure thatthecoffeecomplieswiththecoffee standardsandsuchotherqualitystandardsas maybeprescribed under thisActor anyother law; and
• (b) adheretothesafetyandhealthstandards

Inspections

Coffeeimportsto conformto standards.

prescribed under this Act or any other law.

(2) The Board shall destroy coffee which does not conformtothecoffeestandards.

(3)The Board shall not destroy coffee under subsection(2)unless-

• (a) it has issued to the importer of the coffee, notice, in theprescribed form,ofintention to destroy the coffee;
• (b) given the importer an opportunity to be heard; and
• (c) obtained an order of a Court of competent jurisdictionfor the destructionofthatcoffee.

(4) The Board may,in addition to the action taken under subsection(3),suspend or cancel anylicence issued to the importer under this Act.

PARTVIII-FINANCIALPROVISIONS

63. The funds and assets ofthe Board shall comprise of—

• National Assembly for the purposes of the Board;
• (b)such monies or assets as may accrue to or vest in theBoardinthecourseoftheexerciseofits powersor theperformanceofitfunctionsunder this Act;
• (c) monies received from the levy imposed on coffee sales pursuant to section 64;
• (d)suchmoniesasmaybepayabletotheBoard pursuant to this Act or any other written law;
• (e)such gifts as may be donated to the Board; and
• (f)monies from any other source granted,donated or lenttotheBoard.

64.(1)The Cabinet Secretary shall,in consultation withtheBoard and countygovernments and bynotice in the Gazette,impose a levy of two per centum on the exportimportvalueremittedbycoffeebuyerstotheBoard throughthedirectsettlementsystemforthedevelopment of the coffee industry.

• (2)The levy imposed under subsection ((1)

Funds of theBoard.

Coffee development Levy.

hall be apportioned as follows

• (a)thirty per centum to theInstitute;
• (b) fifteen per centum to the Board for regulatory purposes;
• (c)twentyper centumforpricestabilizationwhich shall bemanagedbythe CommoditiesFund;
• (d)tenper centum ntotheBoardformarketing purposes; and

(e) twenty-five per centum to the county\_growing areasonpro-ratabasisasaconditionalgrantforcoffee development.

65.(l)Atleastthreemonthsbefore commencement of each financial year, the Board shall cause tobe preparedestimatesof therevenueand expenditure of theBoard for that year.

(2) The annual estimates shall make provision for all estimated expenditureof theBoardfor thefinancialyear concerned.

(3) The annual estimates prepared by the Board under subsection(2) shall be submitted to the Cabinet Secrctaryfor tabling in theNational Assembly.

66.(1)TheBoard shall cause tobekept suchbooks ofaccountsandotherbooksinrelation theretoofallits undertakings,funds,activities and property as the Cabinet Secretarymayfrom timetotime approve and shall,within a period of three months after the end of the financial year, causetobeprepared,signedandforwardedtotheAuditorGeneral-

• (a)a balance sheet showing in detail the assets and liabilities oftheBoard;
• (b) monies received from the levyimposed on coffee salespursuant to section 64;and
• (c)such other statements of accounts as the Cabinet Secretarymayapprove.

(2) The accounts of the Board shall be examined, auditedandreporteduponannuallybytheAuditorGeneral inaccordancewiththePublicAuditAct.

(3)TheBoard shall submit to theAuditor-General all books and accounts of the Board, together with all Annual Estimates.

Accounts and Audit.

CAP412B.

vouchers in support thereof, and all books, papers and writings initspossession or control relating thereto,and the Auditor-General shall be entitled torequire from any member, officer, employee or agent of the Board such information and explanation as he mayconsidernecessary for theperformance of his duties.

67.(1)The Board shall,within a period of three monthsaftertheendofeachfinancialyearorwithinsuch longer periodas the Cabinet Secretarymay approve, submittotheCabinetSecretaryareportoftheoperations of the Board during such year,and the yearly balance sheetandsuchotherstatementsofaccount astheCabinet Secretary shall require, together with the AuditorGeneral's report.

(2) The Board shall, if the Cabinet Secretary so requires,publish the report,balance sheet and statements submitted tohimundersubsection(1)insuchmanner as the Cabinet Secretary may specify.

(3)TheCabinet Secretaryshallsubmit tothe National Assembly and the Senate the reports,balance sheet and statements under subsection (1),within a period offourteendaysofthereceiptofthereportsand statements or, if a House of Parliament is not sitting, within fourteen days of the commencement of its next sitting.

68.Thefinancialyearof theBoardshallbethe period of twelve months ending on the thirty first of June in each financial year.

PARTIX-COFFEERESEARCHANDTRAINING INSTITUTEOFKENYA

69.(1)There is established anInstitute tobeknown as the Coffee Research and Training Institute.

(2)TheInstituteshallbeabodycorporatewith perpetual succession and a common seal andshall,in its corporatename,be capable of—

• (a) suing and being sued;
• (b)purchasingorotherwise eacquiring,holding, charging and disposing movable and immovableproperty;
• (c) borrowing and lending money; and
• (d) doingor performingallother thingsor acts

Annual report and publication.

Financial year of the Board.

Establishment of the Institute.

necessaryfor the proper performance of its functions under thisActwhich may lawfullybe done or performed by a body corporate.

70. (1) The headquarters of the Institute shall be in Headquarters. Kiambu County.

(2)The Institute may establish such branches in Kenya as it may consider necessaryfor the efficient performanceofitsfunctions.

71.(1) The Institute shall have all the powers necessaryfor the proper performance of its functions under this Actandinparticular,butwithoutprejudiceto the generality of theforegoing,theInstitute shall have power to--

• (a) enter into contracts;
• (b) manage, control and administer the assets of the Institute;
• (c) receive gifts, grants, donations or endowments made to theInstitute and make disbursement therefromin accordance with the provisions of this Act;
• (d) subject to the approval of the Cabinet Secretary for thetimebeing responsiblefor matters relating tofinance,invest any of theInstitute's fundsnot immediatelyrequiredforthepurposesofthisAct, as it may determine; and
• (e)operate a bank account intowhich all monies received by the Institute shall be paid in the first instance andout ofwhichallpaymentsmadeby theInstituteshallbemade.

(2) The Institute may, if it considers it necessary, createortakepartinthecreationof,become amemberof, or associatewith abodyor corporationdesigned to assist or promote the coffee industry.

72.(1) The management of the Institute shall vest in a Council consistingof

• (a)a chairperson of theCouncil appointedby the Cabinet Secretary by notice in the Gazette;
• (b) the Principal Secretary responsible for matters relatingtoagricultureorarepresentative nominated by thePrincipal Secretaryin writing;

Powers of the Institute.

Membership of Council ofthe Institute.

• (c) the Principal Secretary for matters relating to finance or a representative nominated by the Principal Secretary in writing;
• (d) theDirectorGeneralof KenyaAgricultural Research Institute;
• (e)one personrepresenting estate coffeegrowers nominatedbythelargest association of estate growers;
• (f) onepersonrepresentingsmallscalecoffee growersnominatedbythe umbrellabodyof cooperativesocieties';
• (g)achiefexecutiveofficerappointedinaccordance withsection79whoshallbeanex-officiomember oftheCouncil.
• (h) a chief executive officer appointed in accordance withsection79whoshallbeanex-officio member oftheboard.
• (2)The Cabinet Secretary shall appoint themembers under subsection (1) (a), (e), (f), and (g) by notice in the Gazette.

(3)A person is qualified for appointment asa chairperson of the Council of theInstitute if thatperson holds a post graduate degree in crop research or a related field from a university recognized in Kenya and has three years'experiencein the coffeesector.

73. The persons appointed under section 72 (1)(a) (e),(f),(g) and (h) shall serve for a term of four years renewablefor onefurtherterm.

• 74.A person shall cease to be a member of the CounciloftheInstituteifthatperson—
• (a) is absent from three consecutive meetings of the Council of theInstitutewithout thepermission of the chairperson;
• (b) becomes an officer, agent or member of staff of the Institute;
• (c)resigns in writing addressed -to the Cabinet Secretary;
• (d) is convicted of a criminal offence and sentenced toa term of imprisonment of notless than six

Term of appointment.

Vacation ofoffice.

months; and

• (e) is declared bankrupt;
• (f) is unable to perform the functions of his office by reason of mental or physical infirmity; or
• (g) dies.
• 75.(1)TheInstitute shall
• (a) advise the National and county governments on theresourcerequirementsfor coffeeresearch;
• (b) prioritise areas for, and co-ordinate, coffee research including research in coffee diseases and new coffee varieties;
• (c)develop appropriatesystems topromotebalanced, diversifiedandsustainedcoffeedevelopmentand tooptimise coffeeproduction through adaptive andinvestigativeresearch;

1Cap319.

• (d) disseminate,in collaboration with the Board, the KenyaAgriculturalandLivestockResearch Organisation establishedunderthe Kenya Agricultural and LivestockResearch Organisation Act and other organizations,k knowledge, information and application ofresearchfindings inrelation tocoffee;and
• (e) facilitatetheuseofimprovedproduction technologyandestablish adequate feedback systemsfromagriculturalproducersinorderto achieve and maintain national self-sufficiency and exportcapacitiesin agriculturalproducts.
• (f)develop curriculum and offer training on research findings.
• (2) For thepurpose of carrying out its functionsunder subsection (1),the Institute shall—
• (a)1 makepolicyrecommendationstotheCabinet Secretaryoncoffeeresearch;
• b identify production, policy, market, processing and utilisation constraints in the coffee industry andprepareshortandlong-termdemanddriven participatory research programmes within the framework of the national agriculturalresearch system;

Functions ofthe Institute.

• identifyanddisseminate,incollaborationwith other relevant agencies, appropriate systems of mechanisation 1andtechnologyoptionsto improvecoffeeproductionandprovideanswers to foreseeable problemsfacing coffee;
• p collaboratewiththeextensionandeducation services and other organisations, agencies and institutions including schools, technical institutions anduniversities,public orprivate,to disseminate research results and technologies;
• e undertake thepropagationof qualitycoffee plantingmaterialsandsupervisionofregistered nurseryoperators;
• providecompetitivegrantstoresearchinstitutes and persons desirous of carrying our research and training programs which address value chain prioritiesandareconsistentwith thenational research priorities and plans of the institute;
• organize,design and carry out on-station and onfarmresearchfor coffee;
• (h) support and promote thetraining and capacity building in relation to agricultural research;
• i) establish andmaintainregular contact with regional and international agriculturalresearch centres to ensure the rapid introduction, evaluationanduseofcoffeeimproved technology;
• establish platformsfor the purposes of sharing research information,advancing research and transfer of technology anddissemination of informationrelatingtoadvancementsmadein coffee research;
• (k) conductannualreviewsofresearchresultsand ensureperformanceimprovementinthefieldof agriculturalresearch;
• makeavailabletotheScienceCommission annual reports onresearch anddevelopment activitiescarriedoutbyorunder theauspicesof the Institute;
• (m) be the lead scientific agency in coffee breeding for the developmentof a climateresilientcoffee

crop and coffeethat isresistant to diseases and pests;

• (n) develop technologies and practicesfor adoption along theproduction,processing and value chain that contribute towards climate change adaption, resilience and mitigation;
• o be thecustodian of theKenyan CoffeeGenome and the primaryinstrument for making modern genomics resources availabletoresearchers working across thecoffeeproduction chain;
• p provide andfacilitate accessto timelyscientific informationinauseableformatandadvisory services to actors in the coffee production chain;
• (b) conductmarketresearch andanalysisand disseminateinformation on its findings to relevantstakeholders;and
• (r) performsuchother functionsas theCouncilof theinstituteshall determine.

76.The Council of the Institute may co-opt two personswithknowledge and experienceinmattersrelating to coffeefor thebetter carrying out of thefunctions of the Council.

77.The provisions of the First Schedule on the conduct ofbusiness and affairs of theBoardof Directors shall apply to the Council with necessarymodifications.

78.Themembersof theCouncilof theInstituteshall bepaid suchremuneration or allowances as the Cabinet Secretaryshall,inconsultationwiththeSalariesand Remuneration Commission determine.

79.(1) There shall be a chief executive officer of the Institutewhoshallbecompetitivelyrecruitedand appointedbytheCouncilof theInstituteonsuchterms andconditions as theCouncil shall determine.

(2) The chief executive officer shall be responsible for thedaytodaymanagementof theaffairsof the Institute.

(3)A person is qualified for appointment under subsection (1) if the person—

(a) is a citizen of Kenya;

Power to co-opt.

Conduct of business of the Councilof the Institute.

Remunerationof members of the Councilofthe Institute.

Chiefexecutive officerofthe Institute.

• (b)holds a degree in agriculture,crops science or businessadministration from 1auniversity recognized in Kenya;
• (c)holds a postgraduate degree or its equivalent from auniversityrecognisedinKenya;and
• (d) has atleast fiveyears'experience at senior management level in agricultural science; policy formulation; policy-oriented research and analysis;and management of humanresource and finance.

(4)Thechiefexecutiveofficershallserveforaterm of fiveyears renewable for afurther term of fiveyears.

80.TheCouncilof theInstitutemayremovethe chiefexecutiveofficerinaccordancewiththetermsand conditions of servicefor

• (a)inabilitytoperform thefunctions of theoffice arisingoutofphysicalormentalincapacity;
• (b)grossmisconduct ormisbehaviour;
• (c)incompetence or neglect of duty; or
• (d) any otherground that would justifyremovalfrom officeunderthetermsandconditionsofservice.

81.The Institute may employ such officers,agents and staff as are necessary for the proper and efficient dischargeofthefunctionsoftheInstituteunderthisAct anduponsuchtermsandconditionsofserviceasthe Institutemaydetermine.

82.Liabilityshallnotattachtothemembersofthe Council, officers, agents or staff for loss or damage incurredbyaperson as aresultof an act or omission done ormade ingoodfaith and without negligencein the performanceorexerciseortheintendedperformanceor exercise of any duty or power imposed by or conferred under thisAct.

83.The affixing of the common seal of the Institute shall be authenticated by the signature of the chairperson and the chief executive officer or a person designated by theCouncil oftheInstitute.

84.Allletters andinstrumentswritten ormadebyor onbehalfof theCounciloftheInstitute,otherthanthose requiredbylawtobeunderseal,andalldecisionsofthe Removal ofchief executive officer of the Institute.

Staffofthe Institute.

Protectionof members andstaff fromliability.

Common seal of the Institute.

Signing Authority.

Councilof theInstitute,shallbe signedunder thehand of the chief executive officer or in the absence of the chief executive officer,a personauthorized bytheCouncilof the Institute.

PARTX-FINANCIALPROVISIONSOFTHE INSTITUTE

85.The funds and assets of the Institute shall comprise of

• (a) such monies as may be appropriated by the National Assembly for the purposes of the Institute;
• (b)such monies or assets as may accrue to or vest in theInstitutein thecourseof thecxerciseofits powersortheperformanceofitfunctionsunder this Actincludingproceedsfrom patents;
• ()onepercentofmoniescollectedfromthesaleof coffee pursuant to section 64 of this Act;
• (d) such monies as maybepayable to theInstitute pursuant to this Act or any other written law;
• (e)such gifts as may be donated to the Institute; and
• (f)monies from any other source granted, donated or lentto theInstitute.

86.The Council of the Institute may, upon consultationwiththeCabinetSecretaryandfromtimeto time,raise or borrow,either by way of mortgage, charge oroverdraftfrom abankor insuch otherways asmaybe appropriate, such sums of money as it may consider necessary for or in connection with the exercise of its powers orperformance ofits functions andduties under this Act.

87.The Council of the Institute may,from time to time and, subject to the provisions of this Act, invest any sums standing to the credit of theInstitutein securities or propertyas maybeapproved for thepurpose bythe Cabinet Secretary for the time being responsible for finance.

88.(l)Atleastthreemonthsbeforethe commencementofeachfinancialyear,theInstituteshall causetobepreparedestimatesof therevenueand Fundsofthe Institute Powers toraise or borrowmoney.

Power to invest.

Annual Estimates.

expenditureof theInstituteforthatyear.

(2) The annual estimates shall make provision for all estimatedexpenditureoftheInstituteforthefinancialyear concerned.

(3) The annual estimates prepared by the Institute under subsection(2)shallbesubmittedtotheCabinet SecretaryfortablinginParliament.

89.(1)TheInstituteshall cause tobekeptsuchbooks ofaccountsandotherbooksinrelationtheretoofallits undertakings, funds,activities and property as the Cabinet Secretary may from time totime approve and shall,within a period of threemonths after the end of thefinancial year, cause to be prepared, signed and forwarded to the AuditorGeneral--

• (a) a balance sheet showing in detail the assets and liabilities oftheInstitute;and
• (b) such other statements of accounts as the Cabinet Secretary may approve.

(4)Theaccountsof theInstituteshallbeexamined, auditedandreporteduponannuallybytheAuditorGeneralinaccordancewiththePublicAuditAct.

(5)TheInstituteshallsubmittotheAuditor-General all books and accounts of the Institute, together with all vouchers in support thereof, and all books,papers and writings initspossession or control relating thereto,and theAuditor-Generalshallbeentitledtorequirefromany member,officer,employee or agent of theInstitute such informationandexplanation ashemayconsidernecessary for theperformance of his duties.

90.(1)TheInstitute shall,within aperiod of seven monthsaftertheendofeachfinancialyearorwithinsuch longer period as theCabinet Secretary may approve, submit to the Cabinet Secretary areport of the operations of the Institute during such year,and the yearly balance sheet and such other statementsofaccount as the Cabinet Secretary shall require, together with the AuditorGeneral'sreport.

(2) The Institute shall, if the Cabinet Secretary so requires,publish the report,balance sheet and statements submitted tohimunder subsection(l)in suchmanner as Accounts and Audit.

CAP412B.

Annualreportand publication.

the CabinetSecretarymay specify.

(3) The Cabinet Secretary shall submit toParliament the reports,balance sheet and statements submitted under subsection(1),within a period of fourteen days of the receipt of thereports and statements or,if Parliament is not sitting,withinfourteen daysof thecommencement of its next sitting.

91.Thefinancialyear of theInstituteshallbethe period of twelvemonths ending on the thirtyfirst of June ineachfinancialyear.

PARTXI—MISCELLANEOUSPROVISIONS

92.(1) Disputes related toissuance eofpermits licensing, nomination of Board members or Council members and other matters that may arise in the coffee sector shall be resolved,in the first instance,by a Dispute Resolution Committee.

(2)Each licensing authority shall have an ad hoc DisputeResolutionCommitteethatconsistsofachair andtwoothermembersappointed bynoticeinthe Gazette,in the case of—

• (a) the Board, the Cabinet Secretary; and
• (b) the county governments, the respective governor;

bynoticeintheGazette.

(3)A member ofthe committee shall not be members of a licencing authority.

(4)A dispute resolution committee may regulate its ownprocedure.

(5)Alicencing authority shallprovide secretarial services toadisputeresolutioncommittee.

(6)The Cabinet Secretary shall makerules on the procedure for nominating members to a Dispute Resolution Committce.

(7)Decisions regarding any dispute contemplated under thissection shall bemadebytherelevantDispute Resolution Committee within thirty days of the hearing of the dispute in question.

(8)Apersonwhoisdissatisfiedwith thedecision of Financialyearof the Institute.

Disputes Resolution Committees aDisputeResolutionCommitteemayappeal totheHigh Court.

93.(1) The Board, a licenced exchange and each countyexecutivecommitteemembershallautomatetheir operationsfortheefficientdeliveryofservicesand disseminationofinformationwithinthecoffeesector.

(2) In automating its processes, the Board and the countyexecutivecommitteemembershallensurethat

• (a) multiple parties can access a common system;
• (b)flowof data takes placeseamlesslyacross the value-chainwithoutinterruption;
• (c) the system is safe and secured and protected against unauthorized access;
• (d) there is in place, a mechanism that ensures access to the system is properly regulated and monitored withadequate mechanismsforcontinued integrity; and
• (e) the records are not lost, destroyed or tampered with,andintheeventof anyloss or destruction, sufficientback-upis availablein a secureplace.

94.(1) The chief executive officer of the Institute may,in writing,request any person tofurnish theInstitute withsuchinformationortoproducesuchdocumentsor records asthechiefexecutiveofficerdeemsnecessaryand relevantfor theperformanceof thefunctionsof the Organization.

• (2)Apersonwho-
• (a) refuses or fails, without reasonable cause,to complywitha request under subsection(l)to furnishanyinformationortoproduceany documentsorrecords;or
• (b)infurnishingsuchinformation,makes a statement whichtheyknowtobefalse,commitsanoffence andshallbeliable,onconvictiontoafinenot exceedingfifty thousandshillings or to imprisonment not exceeding three months, or to both.

95.(1) Pursuant toArticle 24 of the Constitution,the right of access toinformation underArticle 35of the Constitutionshallbelimitedwithrespecttoinformation Digitization.

Request for information.

Limitation of the information. rightto access whose disclosure is,in the opinion of the Council likely to prejudice theintegrityofresearchoranyintellectual propertyrightsheld bytheInstitute.

(2) An officer, member of staff, or agent of the Instituteshallnotdiscloseinformationacquiredunder this ActexceptwiththewrittenconsentoftheCouncilof the Institute.

(3)A personwho receivesinformation contravention of subsection (2) shall not disclose or publish theinformation.

(4) A person who contravenes subsection (2) or (3) commits an offence and shall be liable,on conviction,to a fine not exceeding thirty thousand shillings or to imprisonmentforatermnotexceeding twoyearsor to bothsuchfineandimprisonment.

96. The Board shall carry out market research and analysis and disseminate information on its findings to all stakeholders.

97.(1) A person who commits an offence under this Act for which no penalty is provided is liable, on conviction,toafineofnotmorethanfiftythousand shillings or a fine not exceeding twice thevalue of the coffeeorcoffeeproductsor,toimprisonmentforaterm not exceeding sixmonths,or toboth.

a partnership, company, association or co-operative society,every person who at the time when the offence wascommitted—

• (a)was director,partner or officer;
• (b)had knowledge or should have hadknowledge of thecommissionoftheoffence;and
• (c) didnot exercise due diligence toensure compliance with this Act,

commitsanoffenceand isliablefortheoffence asif they had committed the offence,unless theyprove that the actoromissionconstitutingtheoffencetookplacewithout their knowledge,consent or connivance and that they exerciseddiligencetoprevent thecommissionof the offence as they ought tohave exercised havingregard to thenature of theirfunctions as director,partner or officer Dissemination of market inforimation.

Penalties.

concerned as aforesaid and to all the circumstances.

98.Subject to other applicable laws, the Institute shall be exempted from such taxes,duties,fees,levy,cess or other charges as theCabinetSecretaryfor the time being responsible for finance may by,notice in the Gazette,specify.

99.(1) The Cabinet Secretary may, in consultation with the Board and the Council of County Governors, makeRegulations-

• (a)prescribing anything that maybe prescribed under thisAct;and
• (b) generallyfor thebetter carrying outof the provisions of this Act.

(2)Without prejudice to the generality of subsection (1),the Cabinet Secretary may make Regulations to provide for-

• (a) the regulation of the processing,importation and exportation of coffee and coffee products;
• (b) the forms to be used ——
• (i)in the application for registration, licensing, permits, contracts, bulking of coffee, coffee traceability, and related activities;
• (ii)togivenoticetoanimporteronthe intentionto destroy coffee;
• (ii)insubmissionofmonthlyreturnstothe Board by growers and roasters; and
• (iv)byalaboratorytoreportonquality compliance.
• (c) the process of applicationforregistration, licensing and related activities;
• (d) any fee or levy which may be charged for anythingdoneunder thisAct;
• (e) theregulationandenforcementof contracts between growers,processors and other players in the coffee industry.
• (f)the process of nomination of members to the Board;
• (g) the conditions for the issuance of certificates,

Exemptions.

Regulations.

licenses and permits under this Act;

• (h) the trade, storage, bulking, packing and roasting of coffee;
• (i) the regulation of nursery operations,pulping, milling,warehousing and transportation of coffee;
• (i) the grading and classification of coffee;
• (k) the imposition of costs chargedby service providers along thevalue chain andpayment of coffee salesproceedstogrowers and theirservice providers;and
• (l)operationalizationoftheDirectSettlement System.

PARTXII-TRANSITIONALPROVISIONS

100. (1) All rights, obligations and contracts which,immediately before the coming intooperation of this Act,were vested in or imposed on the Agriculture and FoodAuthoritywithrespect to thecoffee sector shall by virtue of this section, be deemed to be the rights, obligations and contracts oftheBoard as the case maybe.

(2) All rights, obligations and contracts which, immediatelybefore thecoming intooperation of thisAct, werevested inorimposed ontheKenyaAgricultural and Livestock ResearchOrganisationwith respect tothe CoffeeResearchInstituteshall byvirtueof this section,be deemed to be the rights,obligations and contracts of the Institute as the case may be.

101. All funds, assets, and other property, moveableandimmovablewhichwereimmediatelybefore theappointeddayvestedinAgriculture andFood Authority for the carrying out of and Kenya Agricultural and Livestock Research Organisation for the carrying out of functions relating to coffee, shall, by virtue of this paragraph,vest in the Council or the Institute as the Cabinet Secretary may,by order, determine.

Assets.

Legal proccedings

102. (1) On or after the appointed day, all actions, suits or legal proceedings pending by or against theAgricultureandFoodAuthorityinrelationtothe coffee sector shallbe carried on or prosecutedby or against the Board, and no action, suit or legal proceedings Rights and obligations.

shall inanymanner abate orbeprejudiciallyaffectedby theenactmentofthisAct.

(2)Onor aftertheappointedday,allactions,suitsor legal proceedings pending by or against the Kenya AgriculturalandLivestock ResearchOrganisationin relationto thecoffeeresearchinstituteshallbecarriedon or prosecutedby or against theInstitute,andnoaction, suit orlegalproceedings shall in anymanner abate or be prejudicially affected by the enactment of this Act.

103. (1)Anyreference totheAgriculture and documentorinstrument ofwhatever nature,inrelation to coffee, shall, on the appointed day, be read and construed asareferencetotheBoard.

(2) Anyreference tothe Kenya Agricultural and Livestock Research Organisation in any written law or in anycontract,documentorinstrumentofwhatevernature, in relation to coffee,shall,on the appointed day Act,be read andconstruedas areferencetotheInstitute.

104. (l)All directions, orders and authorizations given,or licenses or permits issued,or registrationsmadebytheAgricultureandFoodAuthority inrelationtocoffee,andsubsistingorvalidimmediately before the appointed day,shall be deemed tohavebeen given, issued or made by the Authority as the case may be, underthisAct.

105. (1)Anyperson who,at the commencement of this Act,is amember of staff of the Agriculture and FoodAuthoritydealingwiththecoffeesectorshall,onthe appointed day,become a member of staff of theBoard on thesameorimprovedterms andconditionsofserviceas may be specified by the Cabinet Secretary.

(2)Anypersonwho,at thecommencementof this Act,is a member of staff of the Kenya Agricultural and Livestock Research Organisationworkingwith thecoffee research institute shall,on the appointed day,become a memberofstaffoftheInstituteonthesameorimproved terms and conditions of service as maybe specified by the CabinetSecretary.

106. (1) In this Part

"appointed day" means the day this Act comes into Referenceto written laws.

Previous authorizations.

Staff.

Interpretation.

force.

107. (1) The Crops Act is amended— 2. (a) in section 14 (1) by deleting paragraph (a); and 3. (b) in the First Schedule by deleting the term "coffee" appearing in Part 1.

Consequential amendments.

Cap318

FIRSTSCHEDULE. s.22ands.77

CONDUCTOFBUSINESSANDAFFAIRSOFTHE BOARDOFDIRECTORS

1.(1)Theboardof directorsshall meetatleastoncein everythreemonthstoconductthebusinessoftheBoard.

(2)The chairperson shall convene the ordinary meetingsoftheboardofdirectorsatthepremisesofthe Board.

(3) Despite the provisions of sub-paragraph (1), the Chairperson shall,upon awrittenrequestby at least five members of theboard of directors,convene a special meetingatanytimewhereheconsidersitexpedientforthe transactionofthebusinessoftheBoard.

(4)Unless three quarters of the total number of the members of theBoardotherwiseagree,atleastfourteen dayswrittennoticeof everymeetingof theboard of directors shall be given to everymember of therespective board by the Secretary.

(5)Thequorumfortheconductofthebusinessofthe Boardshallbefivemembers.

(6)Thechairpersonshall presideat everymeeting of the Board at which the chairperson is present and in the absence of the chairperson,the members of the Board presentshallelectonepersonfromtheirnumber topreside over themeetingof theBoard and thatpersonshall have all the powers of the chairperson.

(7) Unless a unanimous decision is reached, a decision majorityof thevotes of thememberspresent andvoting andinthecaseofanequalityofvotes,thechairpersonor person presiding over themeetingshall have a castingvote.

(8)Theproceedings of theboardof directorsshallnot beinvalidatedbyreasonofavacancywithinits membership.

(9)Subjecttoprovisions of this Schedule,the board may determine its own procedure and the procedure for any committeeoftheBoardandfortheattendanceofother persons at its meetings.

2.(1)If amember of theboardof directorsisdirectly orindirectlyinterestedinanymatterbeforetheBoardand is present at ameeting of theboard of directors at which the Meetings of the Board.

Disclosureof interest.

matter is the subject of consideration,themember shall,at themeeting and assoonasisreasonablypracticableafter the commencementof themeeting,disclose theinterest of thememberinthematterandshallnottakepartin the deliberations or vote on, the matter.

(2) A disclosure of interest made under this paragraph shallberecordedin theminutesof themeeting atwhich it ismade.

(3) Any contract or instrument which if entered into or executed by aperson notbeinga body corporate,would not berequiredtobeunder sealmaybe enteredintoor executed on behalf of the board of directors by any person generallyorspecially authorizedbytheboardofdirectors forthatpurpose.

SECONDSCHEDULE.

LICENCE,PERMITORCERTIFICATE

| No. | Type of Licence/Permit orCertificate | Issuing Authority | |-------|--------------------------------------------------------|---------------------------| | 1. | Coffee buyer's licence | Board | | 2. | Independent cupping laboratory licence | Board | | 3. | Warehouse operator's licence | Board | | 4. | Coffee liqueur’s licence; | Board | | 5. | Processed coffee import permit | Board | | 6. | Clean coffeemovementpermitfor exports | Board | | 7. | Coffee trading licence | Board | | 8. | Commercial coffee miller's licence | Board | | 9. | Warehouse licence | Countygovernment | | 10. | Coffeenursery certificates | County government | | 11. | Pulping station licence | County government | | 12. | Grower's milling licence | County government | | 13. | Coffeeroaster'slicence | County government | | 14. | Parchment permit from the county of origin | County government | | 15. | Clean coffeemovement permit from theC county of origin | Countygovernment | | 16. | Coffee exchange licence | Capital Markets Authority | | 17. | Brokerslicence | Capital Markets Authority |

s.11, s.23

I certify that this printed impression is a true copy of the Bill as passed by the Senate onThursday,21sMarch,2024.

ClerkoftheSenate

EndorsedforpresentationtotheNationalAssemblyinaccordancewiththe provisions of standing order161 of the Senate Standing Orders.

SpeakeroftheSenate