The Rice Bill, 2023

SPECIAL ISSUE

Kenya Gazette Supplement No. 66 (Senate Bills No. 19)

REPUBLIC OF KENYA -------"

KENYA GAZETTE SUPPLEMENT

SENATE BILLS, 2023

NAIROBI, 12th May, 2023

CONTENT

Bill for Introduction into the SenatePAGE

The"Rice"Bill,"2023 ................................................................................ 613

PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI

Clause

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THE RICE BILL, 2023 ARRANGEMENT OF CLAUSES

PART I - PRELIMINARY

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• 1-!Short!title.!
• 2!-!Interpretation.!
• 3-!Objects!of!the!Act.!

PART II - ESTABLISHMENT, FUNCTIONS AND POWERS OF THE KENYA RICE BOARD

• 4!-!Establishment!of!the!Kenya!Rice!Board.!
• 5-!Powers!of!the!Board.!
• 6-!Composition!of!the!Board.!!
• 7-!Qualifications!for!appointment!as!a!member.!
• 8-!Term!of!appointment.!
• 9-!Vacation!of!office.!
• 10-!Functions!of!the!Board.!
• 11-!Committees!of!the!Board.!
• 12-!Delegation!by!the!Board.!
• 13-!Remuneration!of!members!of!the!Board.!
• 14-!Chief!Executive!Officer.!
• 15-!Functions!of!the!chief!executive!officer.!
• 16-!Removal!of!the!chief!executive!officer.!
• 17-!Staff!of!the!Board.!
• 18-!Protection!of!members!and!staff!from!liability.!
• 19-!Common!Seal!of!the!Board.!
• 20-!Signing!authority.!
• 21-!Meetings!of!the!Board.!

PART III - ROLE OF COUNTY GOVERNMENTS

• 22-!Role!of!county!governments.!

PART IV - REGULATORY PROVISIONS

• 23-!Registration.!

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• 24-!Licensing!of!manufacturers!or!processors.
• 25-!Refusal!to!grant!a!licence.!
• 26-!Cancellation!of!a!licence.!
• 27-!Compliance!notice.!
• 28-!Effect!of!cancellation!of!licence.!
• 29-!Appeals.!

PART V-FINANCIAL PROVISIONS

• 30-!Funds!of!the!Board.!
• 31-!Rice!Development!levy.!
• 32-!Rice!Development!Fund.!
• 33-!Annual!estimates.!
• 34-!Accounts!and!audit.!
• 35-!Annual!Report!and!Publication.!
• 36-!Financial!year!of!the!Board.!

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PART VI - MISCELLANEOUS PROVISIONS

• 37!-!Incentives.!
• 38-!Annual!general!meeting.!
• 39-!Quality,!safety!and!health!control!measures.!
• 40-!Safeguard!measures.!
• 41-!Power!to!require!information,!offences!and!penalty.!
• 42 ! -!Regulations.!

PART VII- SAVING AND TRANSITIONAL PROVISIONS.

• 43-!Transfer!of!staff.!
• 44-!Transfer!of!assets!and!liabilities.!
• 45!-!Pending!proceedings!and!claims.!
• 46!-!Consequential!amendments!

SCHEDULE - PROVISIONS RELATING TO THE CONDUCT OF MEETINGS OF THE

BOARD

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THE RICE BILL, 2023

A Bill for

• AN ACT of Parliament to provide for the development, regulation and promotion of the rice industry; to provide for the establishment, powers and functions of the Kenya Rice Board, and for connected purposes. !

ENACTED by!the!Parliament!of!Kenya,!as!follows!-!

PART I-PRELIMINARY

1. This!Act!may!be!cited!as!the!Rice!Act,!2023.! 2. In!this!Act,!-!

'agreements'! means! the! agreements! specifying! the! standard!provisions!governing!the!rights!and!obligations!of! growers,! millers,! traders! and! growers'! institutions! in! the! rice!industry[!

'Board'! means! the! Kenya! Rice! Board! established! under!section!4[!

'by\product'! means! any! substance,! other! than! rice,! produced!incidentally!during!the!harvesting!and!milling!of! paddy!rice[!!

'Cabinet! Secretary'! means! the! Cabinet! Secretary! responsible!for!matters!relating!to!Agriculture[!!

'county! executive! committee! member'! means! the! county! executive! committee! member! responsible! for! agriculture!in!the!respective!county[!

'Fund'! means! the! Rice! Development! Fund! established!under!section!32[!!

'grower'!means!a!person!who!grows!paddy!rice[!!

'interested! parties'! means! the! Government,! millers,! traders,!growers!or!growers'!institutions[!!

'licence'! means! a! licence! issued! under! the! Act! to! a! miller,!trader!or!any!relevant!stakeholder[!

'miller'!means!a!person!licensed!to!operate!a!rice!mill! in!Kenya!for!the!production!of!rice!and!other!by\products[!

'Ministry'!means!the!Ministry!responsible!for!matters! relating!to!agriculture[!

Short!title.!

Interpretation.!

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'rice'!means!any!plant!or!part!of!a!plant!of!the!cereal! grass!( Oryza sativa )!or!any!hybrid!of!that!plant.!

'rice!industry'!includes!the!growing!of!paddy!rice,!the! milling,! value! addition,! marketing! and! disposal! of! milled! rice!and!its!by\products[!

3. The! objects! of! this! Act! are! to! provide! a! framework-!

• (a) ! for!the!coordinated!implementation!of!the!national! policies! and! strategies! on! the! development! and! regulation!of!the!rice!industry[!
• (b) ! to!promote!a!globally!competitive!rice!industry[!
• (c) ! to! facilitate! the! production,! value! addition! and! processing! of! safe! and! healthy! rice! and! its! by\ products[!!
• (d) ! to! facilitate! the! introduction! of! modern! farming! techniques! and! general! modernisation! of! the! rice! industry[!
• (e) ! !for! the! registration! and! licensing! of! various! players!within!the!rice!industry[!
• (f) ! for! funding! various! activities! within! the! rice! industry!in!order!to!improve!the!overall!production! and!returns!in!the!rice!industry[!and!
• (g) ! to! delineate! the! roles! of! the! National! and! County! Governments! in! the! regulation,! development! and! promotion!of!the!rice!industry.!

PART II - ESTABLISHMENT, FUNCTIONS AND POWERS OF THE KENYA RICE BOARD

4. (1)! There! is! established! a! Board! to! be! known! as! the!Kenya!Rice!Board.!

(2) ! The! Board! shall! be! a! body! corporate! with! perpetual! succession! and! a! common! seal! and! shall,! in! its! corporate!name,!be!capable!of-!

• (a) ! suing!and!being!sued[!
• (b) ! taking,!purchasing!or!otherwise!acquiring,!holding,! charging!and!disposing!of!movable!or!immovable! property[!

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Objects!of!the! Act.!

Establishment!of! the!Kenya!Rice! Board.!

• (c) ! enter!into!contracts[!
• (d) ! borrowing!and!lending!money[!and!
• (e) ! doing!or!performing!all!such!other!things!or!acts!as! may!be!necessary!in!furtherance!of!its!object!and! functions.!

(3)!The!headquarters!of!the!Board!shall!be!in!Nairobi! City.!

(4)! The! Board! may! establish! branches! in! such! other! counties! as! it! may! consider! necessary! for! the! effective! performance!of!its!functions!under!this!Act.!

5. (1)!The!Board!shall!consist!of!-!

• (a) ! a!chairperson!appointed!by!the!President!by!notice! in!the! Gazette [!
• (b) ! the!Principal!Secretary!responsible!for!agriculture! or! a! representative! nominated! by! the! Principal! Secretary!in!writing[!
• (c) ! the! Principal! Secretary! responsible! for! trade! or! a! representative! nominated! by! the! Principal! Secretary!in!writing[!
• (d) ! two!representatives!with!demonstrated!experience! in! the! industry! nominated! by! the! Council! of! County!Governors[!
• (e) ! one!person!having!at!least!ten!years'!experience!in! the! industry! elected! by! millers! and! appointed! by! the!Cabinet!Secretary[!
• (f) ! two!people!nominated!by!the!cooperative!society! or! association! representing! the! largest! number! of! small\scale!rice!associations!in!Kenya[!
• (g) ! one! person! nominated! by! the! cooperative! society! or! association! representing! the! largest! number! of! large\scale!rice!associations!in!Kenya[!
• (h) ! a! chief! executive! officer! appointed! by! the! Board! who!shall!be!an! ex-officio !member!of!the!Board.!

(2)! The! Cabinet! Secretary! shall,! taking! into! account! the!principle!that!not!more!than!two\thirds!of!the!members! should!be!of!the!same!gender,!appoint!the!members!under! subsection!(1)(d),!(e),!(f)!and!(g)!by!notice!in!the! Gazette .!

Composition!of! the!Board.!

6. A!person!is!qualified!for!appointment!as!a!member! of!the!Board!if!that!person-!

• (a) ! is!a!citizen!of!Kenya[!
• (b) ! holds! a! degree! from! a! university! recognised! in! Kenya[!and!
• (c) ! meets!the!requirements!of!leadership!and!integrity! set!out!in!Chapter!Six!of!the!Constitution.!

(2)! A! person! 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.!

7. A!person!who!is!appointed!under!section!5(1)(a),! (d),! (e),! (f)! and! (g)! shall! serve! for! a! term! of! three! years! renewable!for!one!further!term.!

8. !A!person!shall!cease!to!be!a!member!of!the!Board! if!that!person-!

• (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! the! President,! and! in! the! case! 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[!and!
• (e)! is!declared!bankrupt[!
• (f)! is! unable! to! perform! the! functions! of! office! by! reason!of!mental!or!physical!infirmity[!or!
• (g)!dies.!

9. !(1)!The!Board!shall!-!

• (a) ! regulate!and!promote!the!development!of!the!rice! industry[!

Qualifications!for! appointment!as!a! member.!

Term!of! appointment.!

Vacation!of! office.!

Functions!of!the! Board.!

• (b) ! co\ordinate! the! activities! of! individuals! and! organisations!within!the!industry[!and!
• (c) ! facilitate! equitable! access! to! the! benefits! and! resources!of!the!industry!by!interested!parties.!

(2)! Without! prejudice! to! the! generality! of! subsection! (1),!the!Board!shall-!

• (a) ! participate!in!the!formulation!and!implementation! of!overall!policies,!plans!and!programs!of!work!for! the!development!of!the!industry[!
• (b) ! act! as! an! intermediary! between! the! industry! and! the!National!and!County!Governments[!
• (c) ! facilitate!the!flow!of!research!findings!to!interested! parties!through!the!provision!of!effective!extension! services[!
• (d) ! monitor! the! domestic! market! with! a! view! to! identifying! and! advising! the! Government! and! interested! parties! on! any! distortions! in! the! rice! market[!
• (e) ! !regulate! and! control! marketing,! importation! and! exportation!of!rice!and!its!by\products[!
• (f) ! facilitate! the! arbitration! of! disputes! among! interested!parties[!
• (g) ! facilitate!the!export!of!local!rice[!
• (h) ! promote!and!encourage!the!use!of!environmentally! friendly!technologies!in!the!industry[!
• (i) ! put!in!place!measures!for!control!of!plant!diseases! or!noxious!weeds!that!affect!rice!production[!
• (j) ! provide! advisory! services! to! growers,! growers'! institutions,! traders,! millers! and! other! interested! parties[!
• (k) ! facilitate! an! equitable! mechanism! for! the! pricing! of!paddy!and!milled!rice!and!of!the!by\products!of! rice[!
• (l) ! put!in!place!measures!for!timely!access!by!growers! to!affordable!seeds!and!farm!inputs[!
• (m) ! represent!the!industry!in!such!organizations!as!are! relevant!for!the!promotion!of!the!industry[!

• (n) ! oversee! the! formulation! of! standard! provisions! governing! the! mutual! rights! and! obligations! of! growers,!millers!and!other!interested!parties[!
• (o) ! collect,! collate! and! analyse! industry! statistics! and! maintain!a!data!base!for!the!industry[!
• (p) ! promote! the! efficiency! and! development! of! the! industry! through! the! establishment! of! appropriate! institutional!linkages[!and!
• (q) ! Carry!out!such!other!functions!as!may!be!assigned! by! the! Cabinet! Secretary! or! conferred! under! any! other!law.!

(3)! The! Board! shall! consult! and! collaborate! with! the! Council! of! County! Governors! in! the! development,! promotion!and!regulation!of!the!industry.!!

10. (1)!The!Board!shall!have!all!the!powers!necessary! for!the!proper!performance!of!its!functions!under!this!Act.!

(2)! Without! prejudice! to! the! generality! of! the! foregoing,!the!Board!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! made! to! the! Board! and! make! disbursement! therefrom!in!accordance!with!the!provisions!of!this! Act[!
• (d) ! subject!to!the!approval!of!the!Cabinet!Secretary!for! the! time! being! responsible! for! matters! relating! to! finance,! invest! any! of! the! Board's! funds! not! immediately!required!for!the!purposes!of!this!Act,! as!it!may!determine[!and!
• (e) ! operate! a! bank! account! into! which! all! monies! received! by! the! Board! shall! be! paid! in! the! first! instance! and! out! of! which! all! payments! made! by! the!Board!shall!be!made.!

(3)!The!Board!may,!if!it!considers!it!necessary,!create! or! take! part! in! the! creation! of,! become! a! member! of,! or! associate!with!a!body!or!corporation!designed!to!assist!or! promote!the!industry.!

Powers!of!the! Board.!

11. (1)!The!Board!may!establish!such!committees!as!it! may!consider!necessary!for!the!efficient!performance!of!its! functions!and!the!exercise!of!its!powers!under!this!Act.!

(2)! The! Board! may! co\opt! to! sit! in! a! committee! established! under! subsection! (1)! such! persons! whose! knowledge!and!skills!are!necessary!for!the!performance!of! the!functions!of!the!Board.!

12. The! Board! may,! by! resolution,! delegate! to! any! committee,! member,! officer,! employee! or! agent! of! the! Board,! the! exercise! of! any! of! the! powers! or! the! performance!of!any!of!the!functions!of!the!Board!under!this! Act!or!under!any!other!written!law.!

13. The!members!of!the!Board!shall!be!paid!such! remuneration!or!allowances!as!the!Cabinet!Secretary!shall,! in!consultation!with!the!Salaries!and!Remuneration! Commission,!determine.!

14. (1)!There!shall!be!a!chief!executive!officer!of!the! Board!who!shall!be!competitively!recruited!and!appointed! by! the! Board! on! such! terms! and! conditions! as! the! Board! shall!determine.!

(2)!A!person!is!qualified!for!appointment!as!the!chief! executive!officer!if!that!person-!

• (a) ! is!a!citizen!of!Kenya[!
• (b) ! holds! a! master's! degree! from! a! university! recognized!in!Kenya[!
• (c) ! has! at! least! five! years'! experience! in! senior! management[!and!!
• (d) ! meets!the!requirements!of!leadership!and!integrity! set!out!in!chapter!six!of!the!Constitution.!

(3)!The!chief!executive!officer!shall!hold!office!for!a! term!of!five!years!and!is!eligible!for!re\appointment!for!one! further!term.!

15. The!chief! executive! officer! shall! be! the! secretary! to! the! Board! and! shall,! subject! to! the! direction! of! the! Board-!

• (a)! be! responsible! for! the! day! to! day! management!of! the!affairs!of!the!Board[!

Committees!of!the! Board.!

Delegation!by!the! Board.!

Remuneration!of! members!of!the! Board.!

Chief!executive! officer.!

Functions!of!the! chief!executive! officer.!

• (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!the!implementation!of!the! policies,!programmes!and!objectives!of!the!Board[!
• (e)! cause! to! be! prepared! for! the! approval! of! the! Board-!
• (i)!the!strategic!plan!and!annual!plan!of!the!Board[! and!
• (ii)!the!annual!budget!and!audited!accounts!of!the! Board[!and!
• (f)! perform!such!other!duties!as!may!be!assigned!by! the!Board.!

16. The! chief! executive! officer! shall! cease! to! hold! office!if!he!or!she-!

• (a) ! resigns!in!writing,!addressed!to!the!Board[!
• (b) ! !is! convicted! of! a! criminal! offence! and! sentenced! to! a! term! of! imprisonment! of! not! less! than! six! months[!
• (c) ! !is! found! liable! for! gross! misconduct! or! abuse! of! office! in! contravention! of! the! Public! Officers! Ethics!Act!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.!

17. The!Board!may!employ!such!officers,!agents!and! staff!as!are!necessary!for!the!proper!and!efficient!discharge! of!the!functions!of!the!Board!under!this!Act!and!upon!such! terms! and! conditions! of! service! as! the! Board! may! determine.!

18. Liability!shall!not!attach!to!the!Board!or!to!any!of! its! members,! officers,! agents! or! staff! for! loss! or! damage! incurred!by!a!person!as!a!result!of!an!act!or!omission!done! or! made! in! good! faith! and! without! negligence! in! the!

Removal!of!the! chief!executive! officer.!

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No.!4!of!2003.!

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Staff!of!the!Board.!

Protection!of! members!and!staff! from!liability.!

performance! or! exercise! or! the! intended! performance! or! exercise! of! any! duty! or! power! imposed! by! or! conferred! under!this!Act.!

19. The! affixing! of! the! common! seal! of! the! Board! shall! be! authenticated! by! the! signature! of! the! chairperson! and!the!chief! executive! officer! or! a! person! designated! by! the!Board.!

20. All!letters!and!instruments!written!or!made!by!or! on!behalf!of!the!Board,!other!than!those!required!by!law!to! be! under! seal,! and! all! decisions! of! the! Board,! shall! be! signed!under!the!hand!of!the!chief!executive!officer!or!in! the! absence! of! the! chief! executive! officer,! a! person! authorized!by!the!Board.!

21. (1)!The!business!and!affairs!of!the!Board!shall!be! conducted!in!accordance!with!the!Schedule.!

(2)!Except!as!otherwise!provided!in!the!Schedule,!the! Board!may!regulate!its!own!procedure.!

(3)!The!Board!may!invite!any!person!to!attend!any!of! its!meetings!and!to!participate!in!its!deliberations,!but!such! person!shall!not!be!entitled!to!vote!on!any!of!the!Board's! decisions. !

PART III - ROLE OF COUNTY GOVERNMENTS !

22. (1)!Each!county!government!shall!-!

• (a) ! implement! the! National! Government! policy! relating!to!the!rice!industry[!
• (b) ! regulate!and!promote!the!development!of!the!rice! industry!within!the!respective!county[!
• (c) ! co\ordinate!the!activities!of!persons,!organisations! and!any!other!associations!within!the!rice!industry! in!the!respective!county[!and!
• (d) ! facilitate! access! by! players! in! the! rice! industry! within!the!respective!county!to!such!resources!and! financial!support!as!may!be!necessary!to!promote! the! development! of! the! rice! industry! in! the! respective!county.!

(2)!Each!county!executive!committee!member!shall,!in! ensuring!that!the!county!government!fulfils!its!obligations! under!subsection!(1)-!!

Common!seal!of! the!Board.!

Signing!authority.!

Meetings!of! Boards.!

Role!of!county! governments.!

• (a) ! maintain!an!up!to!date!register!of!rice!growers,!rice! co\operative!societies! and! other! associations! as! it! considers!appropriate!in!that!county[!!
• (b) ! implement! national! and! county! legislation! on! industry! code! of! practice,! policies! and! guidelines! on! corporate! governance! in! rice! growers'! institutions[!
• (c) ! offer! extension! services! on! rice! production! and! primary!processing[!
• (d) ! provide!assistance!on!post!harvesting!management! of!rice[!
• (e) ! collaborate! with! the! national! government! to! facilitate! timely! access! by! growers! to! affordable! seed!and!farming!inputs.!
• (f) ! promote! the! organization! of! rice! farmers! cooperatives,! associations,! and! organizations! and! provide!them!with!credit!and!financing!support[!
• (g) ! provide! training,! and! disseminate! information! to! rice!farmers,!farm!workers!and!processors!relative! to! production! technology,! market! systems,! farm! workers,!entrepreneurial!and!other!technical!skills! and!values[!
• (h) ! collaborate! with! relevant! institutions! so! as! to! promote! access! to! credit! and! other! financial! services[!
• (i) ! inspect!farms!and!value!addition!industries!located! within!their!respective!counties[!
• (j) ! in! collaboration! with! law! enforcement! agencies,! enhance!security!in!rice!growing!areas[!and!
• (k) ! monitor!and!report!incidences!of!pests!and!disease! outbreaks! to! the! Board! and! take! action! in! collaboration! with! the! Board! and! other! relevant! government!agencies.!

PART IV - REGULATORY PROVISIONS

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23. (1)! A! person! or! entity! shall! not! directly! or! indirectly! carry! out! the! business! of! a! rice! grower,! rice! nursery! operator,! rice! cooperative! society! or! rice! association! unless! such! person! is! registered! by! the!

Registration.!

respective! county! government! in! which! the! business! is! to! be!undertaken.

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

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

(4)!A!register!under!subsection!(3),!shall!include-!

• (a) ! the! name! of! the! rice! grower,! nursery! operator,! cooperative!society!or!rice!association[!
• (b) ! the!location,!size!and!parcel!number!of!the!land!on! which!the!business!is!located[!and!!
• (c) ! !such! other! information! as! the! county! executive! committee!member!may!prescribe.!

(5)! Each! county! government! shall,! in! each! quarter,! submit!to!the!Board!a!copy!of!the!register!under!subsection! (3).!

24. !(1)! A! person! shall! not! directly! or! indirectly! engage!in!the!business!of!milling!or!processing!of!rice!by\ products!unless!such!person!has!applied!for!a!licence!with! the! county! executive! committee!member!by!submitting!to! the!county!executive!committee!member!-!!

• (a)! an!application!for!a!licence!in!the!prescribed!form[!
• (b)!such!information!as!may!be!prescribed[!and!
• (c)! the!prescribed!fees.!

(2)! A! county! executive! committee! member! shall! consider!an!application!within!such!period,!not!exceeding! fourteen! days,! as! may! be! prescribed! in! the! respective! county!legislation,!and!may-!!

• (a)! grant!an!application!for!a!licence!unconditionally[!
• (b)!grant! the! application! subject! to! conditions! specified!in!the!respective!licensing!legislation[!or!
• (c)!!reject!the!application.!

(3)! A! county! executive! committee! member! shall! inform! the! applicant! of! its! decision! under! subsection! (2)! within!fourteen!days!of!the!decision.!

Licensing!of! miller!or! processor.!

(4)! Where! the! county! executive! committee! member! rejects! an! application,! the! county! executive! committee! member! shall,! in! its! notification! under! subsection! (3),! specify!the!reasons!for!the!rejection.!

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

(6)! A! person! who! contravenes! the! provisions! of! subsection! (1)! commits! an! offence! and! is! liable,! on! conviction,!to!a!fine!not!exceeding!one!million!shillings!or! twice! the! value! of! the! rice! or! rice! products,! whichever! is! greater,! or! to! imprisonment! for! a! term! not! exceeding! two! years!or!both.!

25. (1)!The!county!executive!committee!member!may! refuse!to!grant!a!licence!where-!

• (a) ! the!applicant!fails!to!meet!the!conditions!specified! in!section!24(1)[!or!
• (b) ! the! application! does! not! comply! with! the! requirements!imposed!under!this!Act!or!prescribed! under!the!specific!county!legislation.!

(2)! The! county! executive! committee! member! shall! notify!the!applicant!of!the!decision!within!fourteen!days!of! such!refusal.!

26. (1)!The!county!executive!committee!member!may! cancel! the! licence! of! a! person! under! this! Act! if! the! licensee-!

• (a)! fails!to!meet!any!condition!imposed!by!this!Act!or! county!legislation[!!
• (b)!fails!to!comply!with!the!provisions!of!the!licencing! legislation[!or!
• (c)! surrenders! the! licence! or! permit! to! the! relevant! licensing! authority! together! with! a! notice! setting! out!a!request!that!the!licence!be!cancelled[!

(2)!The!county!executive!committee!member!shall!not! revoke! the! licence! under! subsection! (1)! unless! the! committee!member-!

• (a)!!issues!to!the!person,!a!notice!of!at!least!fourteen! days!of!the!intention!to!cancel!the!licence[!!

Refusal!to!grant!a! licence.!

Cancellation!of!a! licence.!

• (b)! issues! to! that! person! a! compliance! notice! in! the! prescribed!form[!or!!
• (a) ! grants! the! person,! an! opportunity! to! be! heard! on! the!revocation.!

(3)! The! county! executive! committee! member! shall! cancel!the!licence!of!a!person!who!has!ceased!to!carry!out! the!business!for!!which!the!licence!was!issued.!!

27. (1)! A! compliance! notice! issued! under! section! 26(2)(a)!shall-!

• (a)!be!in!writing[!
• (b)!set!out!the!areas!of!non\compliance!and!the!steps! required!to!be!undertaken!in!order!to!comply[!and!
• (c)! specify! the! period! within! which! the! person! is! required!to!comply!with!the!notice.!

(2)! The! county! executive! committee! member! may,! upon!request!by!the!licensee!and,!where!there!are!sufficient! grounds! shown! by! the! licensee,! extend! the! period! of! compliance!for!such!period!as!the!committee!member!may! consider!necessary!to!ensure!compliance.!

28. (1)! Where! a! person! who! receives! a! notice! under! section! 27! fails! to! comply! with! such! notice,! the! county! executive!committee!member!shall!-!

• (a)!cancel!the!licence!of!that!person[!and!
• (b)!notify!the!person!in!writing!of-!
• (i)!the!cancellation!and!the!reasons!for!it[!and!
• (ii)!the!date!of!cancellation.!

(2)!For!purposes!of!this!Act,!a!cancellation!of!licence! takes!effect!on!the!date!on!which!the!licence!is!cancelled!by! the!county!executive!committee!member.!

29. Where! an! applicant! is! dissatisfied! with! the! decision!of!the!county!executive!committee!member!not!to! issue!a!licence!under!this!Act,!the!applicant!may!appeal!to! the!court!within!thirty!days!of!the!decision.!

PART V - FINANCIAL PROVISIONS

30. The!funds!of!the!Board!shall!comprise!-!

Compliance! notice.!

Effect!of! cancellation!of! licence.!

Appeals.!

Funds!of!the! Board.!

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• (a) ! such! monies! as! may! be! appropriated! by! the! National!Assembly!for!the!purposes!of!the!Board[!
• (b) ! such!monies!as!may!accrue!to!or!vest!in!the!Board! in! the! course! of! the! exercise! of! its! powers! or! the! performance!of!its!functions!under!this!Act[!and!
• (c) ! all! monies!from!any!other!source!provided!for!or! donated!or!lent!to!the!Board.!

31. (1)! The! Cabinet! Secretary! may,! in! consultation! with!the!Board,!and!the!Council!of!County!Governors,!by! order! in! the! Gazette ,! impose! a! levy! on! domestic! and! imported!rice!to!be!known!as!the!rice!development!levy.!

(2) ! The!levy!shall!be!payable!at!such!rate!as!may!be! specified!in!the!order.!

(3) ! An! order! under! this! section! may! contain! provisions!as!to!the!time!at!which!any!amount!payable!by! way!of!the!levy!shall!become!due.!

(4) ! All!monies!received!in!respect!of!the!levy!shall!be! paid! to! the! Board! and! if! not! paid! on! or! before! the! date! prescribed! by! the! order,! the! amount! due! and! any! sum! payable! under! subsection! (5)! shall! be! a! civil! debt! recoverable!summarily!by!the!Board.!

(5) ! If!a!person!fails!to!pay!any!amount!payable!by!him! by!way!of!the!levy!on!or!before!the!date!prescribed!by!the! order,!a!sum!equal!to!five!per!centum!of!the!amount!shall! be!added!to!the!amount!due!for!each!month!or!part!thereof! during!which!the!amount!due!remains!unpaid.!

(6) ! The!Board!shall!apply!the!money!received!under! this!section!for!the!furtherance!of!the!objects!of!the!Board! and! for! ! purchase! of! locally! produced! rice! from! growers! and!growers'!institutions.!

32. (1)!There!may!be!established!a!Fund!to!be!known! as!the!Rice!Development!Fund!which!shall!be!administered! by!the!Board.!

(2)!The!Fund!shall!consist!of-!

• (a) ! the!rice!development!levy[!
• (b) ! any! funds! provided! by! bilateral! or! multilateral! donors!for!the!purposes!of!the!Fund[!
• (c) ! any! moneys! provided! by! the! National! Assembly! for!the!purposes!of!the!Fund[!

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• (d) ! any!moneys!provided!by!a!county!assembly!for!the! purposes!of!the!Fund[!and!
• (e) ! moneys! from! any! other! source! approved! by! the! Board.! !

33. (1)! At! least! three! months! before! the! commencement! of! each! financial! year,! the! Board! shall! cause! to! be! prepared! estimates! of! the! revenue! and! expenditure!of!the!Board!for!that!year.!

(2)!The!annual!estimates!shall!make!provision!for!all! estimated! expenditure! of! the! Board! for! the! financial! year! concerned.!

(3)!The!annual!estimates!prepared!by!the!Board!under! subsection!(2)!shall!be!submitted!to!the!Cabinet!Secretary! for!tabling!in!the!National!Assembly.!

34. (1)!The!Board!shall!cause!to!be!kept!such!books!of! accounts! and! other! books! in! relation! thereto! of! all! its! undertakings,!funds,!activities!and!property!as!the!Cabinet! Secretary!may!from!time!to!time!approve!and!shall,!within! a!period!of!three!months!after!the!end!of!the!financial!year,! cause!to!be!prepared,!signed!and!forwarded!to!the!Auditor\ General-!

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

(2)! The! accounts! of! the! Board! shall! be! examined,! audited!and!reported!upon!annually!by!the!Auditor\General! in!accordance!with!the!Public!Audit!Act.!

(3)!The!Board!shall!submit!to!the!Auditor\General!all! books! and! accounts! of! the! Board,! together! with! all! vouchers! in! support! thereof,! and! all! books,! papers! and! writings!in!its!possession!or!control!relating!thereto,!and!the! Auditor\General! shall! be! entitled! to! require! from! any! member,! officer,! employee! or! agent! of! the! Board! such! information!and!explanation!as!he!may!consider!necessary! for!the!performance!of!his!duties.!

35. (1)! The! Board! shall,! within! a! period! of! three! months!after!the!end!of!each!financial!year!or!within!such!

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longer! period! as! the! Cabinet! Secretary! may! approve,! submit!to!the!Cabinet!Secretary!a!report!of!the!operations! of!the!Board!during!such!year,!and!the!yearly!balance!sheet! and! such! other! statements! of! account! as! the! Cabinet! Secretary!shall!require,!together!with!the!Auditor\General's! report.!

(2)! The! Board! shall,! if! the! Cabinet! Secretary! so! requires,! publish! the! report,! balance! sheet! and! statements! submitted! under! subsection! (1)! in! such! manner! as! the! Cabinet!Secretary!may!specify.!

(3)!The!Cabinet!Secretary!shall!submit!to!the!National! Assembly! and! the! Senate! the! reports,! balance! sheet! and! statements!submitted!under!subsection!(1),!within!a!period! of!fourteen!days!of!the!receipt!of!the!reports!and!statements! or,!if!a!House!of!Parliament!is!not!sitting,!within!fourteen! days!of!the!commencement!of!its!next!sitting. !

36. !The!financial!year!of!the!Board!shall!be!the!period! of! twelve! months! ending! on! the! thirtieth! of! June! in! each! financial!year.!

PART VI - MISCELLANEOUS PROVISIONS !

37. The!Cabinet!Secretary!responsible!for!finance!may! from!time!to!time!implement!such!measures,!including!tax! incentives!in!order!to!promote!the!development!of!the!rice! industry.!

38. (1)! The! Board! may,! at! least! once! in! every! year,! convene! an! annual! general! meeting! of! representatives! of! millers!and!growers!for!the!purposes!of!deliberating!on!the! issues!affecting!the!rice!industry!and!transacting!such!other! business!of!which!notice!shall!be!given.!!

(2) ! Subject! to! this! Act! and! any! regulations! made! thereunder,!the!Board!may!make!rules!for!the!regulation!of! the! conduct! of! business! and! procedure! at! the! general! meetings!convened!pursuant!to!this!section.!

39. Rice!produced!locally!or!imported!into!the!country! shall!comply!with!the!prevailing!-!

• (a) ! quality! standards! as! set! by! the! body! for! the! time! being!responsible!for!setting!standards[!
• (b) ! safety!and!health!standards!as!set!by!the!body!for! the!time!being!responsible!for!public!health[!and!

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Financial!year!of! the!Board.!

Incentives.!

Annual!general! meeting.!

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Quality,!safety! and!health!control! measures.!

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• (c) ! environmental!standards!as!set!by!the!body!for!the! time!being!responsible!for!environmental!safety.!

40. (1)!Subject!to!such!regional!and!international!trade! agreements!to!which!Kenya!is!a!party,!all!rice!imports!into! the!country!shall!be!subject!to!the!prevailing!import!duties,! taxes!and!other!tariffs!and!such!imports!shall!be!controlled! by!the!Board.!

(2) ! The! Government! shall! implement! such! safeguard! measures!as!may!be!necessary!to!protect!the!industry!from! unfair!trade!practices.!

41. The!Board!may!direct!any!organization!or!person! in! the! rice! industry! to! produce! any! document! or! information,! or! submit! any! returns! which! it! reasonably! considers! necessary! for! the! proper! performance! of! its! functions!under!this!Act.!

(2) ! Any!person!who!-!!

• (a) ! fails! to! comply! with! any! direction! given! by! the! Board!under!this!Act[!!
• (b) ! furnishes! to! the! Board! any! information! or! produces! any! document! which! is! false! or! misleading!in!any!material!particular[!!
• (c) ! obstructs! an! officer! of! the! Board! in! the! performance!of!his!functions!under!this!Act[!and!
• (d) ! diverts!or!abets!the!diversion!of!transit!rice!into!the! domestic!market[!!

commits!an!offence.!

(3) ! A!person!convicted!of!an!offence!under!paragraph! (d)!of!subsection!(2)!shall!be!liable!to!a!fine!not!exceeding! three! times! the! domestic! value! of! the! rice! in! respect! of! which! the! offence! is! committed,! or! two! million! shillings,! whichever!is!the!higher,!or!to!imprisonment!for!a!term!not! exceeding!ten!years,!or!to!both.!

(4) ! A!person!who!contravenes!any!of!the!provisions!of! this!Act!commits!an!offence.!

(5) ! A!person! convicted! of! an! offence! under! this! Act! for!which!no!other!penalty!is!provided!shall!be!liable!to!a! fine! not! exceeding! five! hundred! thousand! shillings,! or! to! imprisonment!for!a!term!not!exceeding!one!year,!or!to!both.!

Safeguard! measures.!

Power!to!require! information,! offences!and! penalty.!

42. (1)! The! Cabinet! Secretary! may,! in! consultation! with! the! Board,! make! regulations! generally! for! the! better! carrying!into!effect!of!the!provisions!of!this!Act.!

(2) ! Without! prejudice! to! the! generality! of! subsection! (1),! the! Cabinet! Secretary! may! make! regulations! prescribing!-!

• (a) ! the! regulation! and! control! of! the! production,! marketing,!importation!and!exportation!of!rice!and! its!by\products[!
• (b) ! the!forms!of!registration!and!licences!to!be!issued! under! this! Act,! and! the! form! and! manner! of! application!for!registration!and!the!licences[!!
• (c) ! the! fees! or! levy! which! may! be! charged! for! any! activity!relating!and!incidental!to!the!development,! products,!marketing!and!distribution!of!rice!and!its! by\products[!
• (d) ! the! regulation! and! enforcement! of! contracts! between!growers,!millers!and!other!players!in!the! rice!industry[!or!
• (e) ! the! process! of! nomination! of! members! to! the! Board.!

PART VII- SAVINGS AND TRANSITIONAL PROVISIONS

43. The!staff!of!the!Rice!Promotion!Programme!Unit! employed! by! the! Ministry! of! Agriculture! and! Livestock! Development!prior!to!the!commencement!of!this!Act,!shall! be!the!staff!of!the!Board.!!!

44. All!property,!except!such!property!as!the!Cabinet! Secretary! may! specify! in! writing,! which,! immediately! before! the! commencement! of! this! Act,! was! vested! in! the! Government!for!the!use!of!the!Rice!Promotion!Programme! Unit! of! the! Ministry! of! Agriculture! and! Livestock! Development,!shall,!on!the!date!of!commencement!of!this! Act,! vest! in! the! Board! subject! to! all! interests,! liabilities,! charges,!obligations!and!trusts!affecting!that!property.!

45. All! legal! proceedings! and! claims! pending! in! respect! of! actions! and! activities! to! which! this! Act! apply! shall! be! continued! or! enforced! by! or! against! the! Board! in!

Regulations.!

Transfer!of!staff.!

Transfer!of!assets! and!liabilities.!

Pending! proceedings!and! claims.!

the! same! manner! as! they! would! have! been! continued! or! enforced! by! or! against! the! National! Cereals! and! Produce! Board!had!this!Act!not!been!enacted.!

46. (1)!!Part!3!of!the!First!Schedule!to!the!Crops!Act!is! amended!deleting!the!following!item!-!!

Rice!.....................!' Oryza sativa !L.!(1)."!

(2) ! The! National! Cereals! and! Produce! Board! Act,! 1986! is! amended! in! the! First! Schedule! by! deleting! the! following!item!!!-!!!!

!!!!!!' rice paddy'. !

SCHEDULE (s. 21(1))

PROVISIONS RELATING TO THE CONDUCT OF BUSINESS AND AFFAIRS OF THE BOARD

1 .! (1)! The! Board! shall! have! at! least! six! meetings! in! every! financial! year! and! not! more! than! two! months! shall! elapse!between!the!date!of!one!meeting!and!the!date!of!the! next!meeting.!

(2)!Meetings!shall!be!convened!by!the!chief!executive! officer! in! consultation! with! the! chairperson! and! shall! be! held!at!such!times!and!such!places!as!the!chairperson!shall! determine.!

(3)! The! chairperson! shall! preside! over! all! meetings! and!in!the!absence!of!the!chairperson,!by!a!person!elected! by! the! Board! as! the! case! may! be! at! the! meeting! for! that! purpose.!

(4)!The!chairperson!may!at!any!time!convene!a!special! meeting!of!the!Board!as!the!case!may!be,!and!shall!do!so! within! one! month! of! the! receipt! by! the! chairperson! of! a! written!request!signed!by!at!least!five!other!members.!

(5)!Unless!half!of!the!members!of!the!Board!otherwise! agree,! at! least! seven! days'! notice! of! a! meeting! shall! be! given!to!every!member!of!the!Board!as!the!case!may!be.!

2. ! The!quorum!of!a!meeting!of!the!Board!shall!be! half!of!the!total!number!of!members.

3. ! A! decision! of! the! Board! shall! be! by! a! majority! of! the! members! present! and! voting! and,! in! the! case! of! an! equality!of!votes[!the!person!presiding!at!the!meeting!shall! have!a!second!or!casting!vote.!

Consequential! amendments.!

Meetings.

Quorum.

Voting.

4. !Minutes!of!all!meetings!shall!be!kept!and!entered!in! records!kept!for!that!purpose.!

5. !(1)!If!a!person!is!present!at!a!meeting!of!the!Board! or!respective!committee!at!which!any!matter!is!the!subject! of!consideration!and!in!which!matter!that!person!is!directly! or! indirectly! interested! in! a! private! capacity,! that! person! shall!as!soon!as!is!practicable!after!the!commencement!of! the!meeting,!declare!such!interest.!

(2)!The!person!making!the!disclosure!of!interest!under! subsection! (1)! shall! not,! unless! the! Board! or! committee! otherwise! directs,! take! part! in! any! consideration! or! discussion! of,! or! vote! on! any! question! touching! on! the! matter.!

(3)!A!disclosure!of!interest!made!under!subsection!(1)! shall!be!recorded!in!the!minutes!of!the!meeting!at!which!it! is!made.!

(4)!A!person!who!contravenes!subsection!(1)!commits! an! offence! and! upon! conviction! is! liable! to! a! fine! not! exceeding! five! hundred! thousand! shillings! or! to! imprisonment! for! a! term! not! exceeding! seven! years! or! to! both!such!fine!and!imprisonment.!

(5)! A! member! or! employee! of! the! Board! shall! not! transact!any!business!or!trade!with!the!Board.!

Minutes.

Disclosure!of! interest.

MEMORANDUM OF OBJECTS AND REASONS

Statement of the Objects and Reasons for the Bill

The Bill seeks to -

• (a) ! establish the Kenya Rice Board and set out its role and functions;
• (b) ! establish the Rice Development Fund to be administered by the Kenya Rice Board; and
• (c) ! provide a legal framework for the regulation of the rice industry across the different value chains in the sector.

Rice is an important food and cash crop in Kenya with critical implications on food security and economic growth. The agricultural sector has largely faced diverse challenges such as high costs of fertilizer, inadequate agricultural extension services and limited data on rice industry participants which have equally affected the rice industry.

The administration of rice growing in Kenya is vested in the National Cereals and Produce Board (NCPB) established under the National Cereals and Produce Board Act, 1986. The NCPB regulates the collection, movement, storage, sale, purchase, transportation, marketing, processing, distribution, importation and exportation, disposal and supply of rice.

The rice industry has suffered from various administrative inefficiencies within the National Cereals and Produce which has contributed to -

• (a) ! exploitation of farmers by middlemen;
• (b) ! increased costs of rice production;
• (c) ! widening gap between the locally produced rice and the annual national consumption;
• (d) ! lack of markets for locally produced rice;
• (e) ! failure to control imports of rice;
• (f) ! adulteration of pure aromatic rice; and
• (g) ! lack of research and rice varieties development initiatives.

The Bill is divided into the following parts-

• PART I contains preliminary provisions.

PART II contains provisions on the establishment, powers and functions of the Kenya Rice Board.

• PART III contains provisions on the role of the County governments which include to implement the national government policy, regulate and promote the rice industry and facilitate access by players to resources and financial assistance that may be necessary to promote the development of the rice industry.

PART IV contains provisions on licensing and registration of rice growers and millers by the County Executive Committee Member.

PART V contains financial provisions which includes establishment of a Rice development fund and a provision on the rice development levy.

• PART VI contains miscellaneous provisions that gives powers to the Cabinet Secretary for finance to implement measures that are geared towards promotion of the rice industry. The part also delegates powers to the Cabinet Secretary for agriculture to make regulations.

PART VII contains consequential amendments to remove rice paddy and rice from the purview of the National Cereals and Produce Board, 1986 and the Crops Act, 2013.

Statement on the delegation of legislative powers and limitation of fundamental rights and freedoms

The Bill only delegates legislative powers to the Cabinet Secretary for the purpose of making regulations to give effect to the provisions of the Act. The Bill does not limit fundamental rights and freedoms.

Statement of how the Bill concerns county governments

The Bill concerns the functions of county governments as it deals with the function of Agriculture assigned to county governments under paragraph 1 of Part 2 of the Fourth Schedule to the Constitution.

Statement as to whether the Bill is a money Bill within the meaning of Article 114 of the Constitution

This Bill is not a money Bill within the meaning of Article 114 of the Constitution.

Dated the 28th March, 2023.

Senator.