Standing Committee On Agriculture, Livestock And Fisheries Report On The Nuts And Oil Crops Bill, 2023 (senate Bills No.47 Of 20

D dL4 Co? Lerocn,oz", &r! oil-"J ^ I o REI'UI}LIC OF KENYA .IHIRTEENTH I'ARLIAMENT - }'OURTH SESSION TIIE SENATE STANI)ING COMMIl'TIi]] ON AGRICULTURE, LIVESI'OCK AND FISHERIES RUPOR'[ ON TllE NUTS AND OIl, CROPS BILL,2023 (SENATE BILLS NO.47 oF 2023) Bt. ns PSC zf, z{ PAPEBS Alo )t cOMMITTEE ;f -,; I a t- CLERK AT THE TABLE .1s-( MAY,2025 6 #''( $on. rnaY v' N of Clcrk's Charnbcrs. I)arl iarncnt Iluildings. NAIROBI. DATE TABLED BY PP RO VE Rr. HON. SEN AM .qs ON J.K ING

\ / t 'ln lll.lr Olf CON'l'l:N'l'S I, I S1' O!' AI}I} RI,IVI A'I'IONS/AC I{oNY MS I.]S1-AI}I,ISI I M T]N'I' ANT) MANT)ATT] OF'I'I IE COMM ITI'EE I 1 v It I ]t l.)t llt..RstI I l, ()1.''l l I l. ( ()\lIl l'l I 1..1,1....... C I IAI ITP ERSON'S tr-ORI.]WOIi.I) AI)OPI'ION OI.'THE REI'OITT OFTHE S'IANDING COMMITTI]E ON A(;ItICt]LI'T]RI], I,IVT]S'IOCK ANI) I.'IS}IERIES ON 'I'HE NUTS AND OII, CROPS lltt,t,2023 (stiNA'l'E lllLLS NO. {7 Ol'2023) ('tI{I,'il,]t o\ l.t |IACK(;RouNl) 1.2 ()tt.tu("t'o[ 1'lIE lill.l. 1.3 ()vr.RVrEW O[']'ilE r]ll.t, ('llr\l''l'[]R'l'Wo 2.I OVURVIUW ()l'r'l.JIll,lc I',Altl'lcll'A'l'loN oN'l'lIE BILt,........... 2.t.1 tNTROI)UC'ilON ............ 2.2 SUI}MISSIoNS FROM S'IAKEHOLI)ERS AND COMMITTEE RESOLUTIONS.... CI IAI'TIiIi,'I'III{EE I.3 ('OMMIl"I'ET] oBST]RVA'I'IoNSANI) RECoMMENDATIONS J.r.I ( ()MMII I t.t: ()lls[:l{v^I I()Ns ..... J, I.2 COMM I'I"I'I]E RECoMMENI)AI'IONS LIST OI,'API'ENDICIIS ............ tv v t L 1 1 2 8 2 8 8 ........8 ..,,,28 ......28 .......28 .......29 30 a

L AFA COG MoALD CEC Agriculturc and Iood Authority Council ol'Govsrnors Ministry ol'Agriculture and Livestock Dcvelopmcnt County []xccutivc Committee t a t t, IST OF AI}I}REVIA'TIONS/ACRONYMS

) I'R!]FACE ES'I'AI} I, I SI-I M ENl' AN I) M AN I)ATE OF' I'H E COM M ITTEE 'l'hc Standing Committcc on Agriculturs. Livcstock and I;ishcrics is cstablished under standing ordcr 22tt(3) olthc Scnatc Standing Ordcrs and is rnandatcd to considcr alI mattcrs rclating to agriculturc, irrigation. livcstock. llshcrics dcvclopmcnt and vctcrinary scrvices. ln undertaking its mandate, the Committee oversees the following State Dcpartnrents: L Ministry ol'Agriculturc and Livcstock I)evelopmcnt; i. 'l'hc Statc I)cpartment lbr Crops Devclopment and; ii. 'l'hc Statc I)epartrncnt lbr Livcstock Devclopmcnt 2. Ministrl' ol-Sanitation. Watcr and Irrigation i. 'l'hc Statc I)cpartrncnt lirr Irrigation 3. Ministry ol'Mining and llluc I'.conomy and |isherics 'l'hc Statc l)cpartmcnt lbr Illue lJconomy and If ishcrics 'l'he (lommittee also oversecs the following State Agencies among othcrs- a. Agriculturc and Iiood Authority (AIrA); b. Agricultural Finance Corporation (AFC); c. Agricultural I)cvelopmcnt Corporation (ADC); d. Kcny'a Sccd Cornpany (KSC); c. Kcnya l)lant Ilcalth Inspcctoratc Scrviccs (KIiPIIIS); l. Kcnya Agricultural and Livcstock I{cscarch Organization (KAl,RO); g. Kcnya Vctcrinary Vaccinc l)roduction lloard (KVVI't]): h. Kcnya Vcterinary Iloard (KVB); i. Kcnya Meat Cornmission (KMC); .i. Kcnya l)airy Iloard (KI)ll): k. Kcnya Lcathcr I)cvcloprncnt Council (KLI)C): l. Kcnya lrishcrics Ssrvicc (Kl;S)l m. Kcnya I;ish Markcting Authority (KITMA); n. Kcnya Marinc and Iishcrics Il.escarch Institute (KF,MFRI); o. Kcnya Irishing Industries Corporation; and p. National Irrigation tloard (NII3). a i/ I a

I 'l.hc Cornmittec also rvorks closcly with thc Council ol'Govcrnors (CoG) and thc County Asscrnblics lrorurtt (Cn lt) and non-statc actors including among othcrs- a. Kcnya Private Sector Alliance (KEPSA); b. Agricultural Council o1'Kcnya (neCK) c. Iiood and A-ericulturc Organization (lrAO)l d. Kcnya National lianncrs' l;cdcration (KI.,NAl;lr); c. Ccntrc lbr Agriculturc and Bioscience International (CABI)t and 1. Agricultural Industry l"orum (AIIr). M r.tM t]l- ttst{ I I, ot' 1'r I E coM M ITTE tl l'hc Cornmittcc is compriscd olthc tbllowing Mcmbcrs- / a a l) Scrt 2) Scn 3) Scn 4) Scn 5) Ssn 6) Scn 7) Scn tt) Scn 9) Scn I)avid Walula Wakoli. MI' Alcxandcr Munyi Mundigi. MI' Moscs Oticno Kajwang'. CIIS. MP Wahornc Wamatinga. MP Mrvcnda (iataya Mo lrirc. CIIS. MP (l'rol.)'l'orn Ojicnda. SC. MI' Cathcrinc Mutnma. MI) Abbas Shcikh. CIIS. MP I Iczcna Lcmalctian. MP Chairperson Vice-Chairperson Mcmbcr Membcr Membcr Mcmbcr Mcmbcr Membcr Mcrnbcr

(.IIA I ITI'F]ITSON'S F()REWORI) Mr. Speaker Sir, 'l'hc Nuts an<l Oil Crops Ilill.2023 (Scnats Uills No. 47 ol-2023) sceks to provide lbr thc production. proccssing. ntarkcting and distribution ol'Kcnyan Nuts and Oil Crops and thcir products: cstablish thc Nuts and Oil Crop lloard: providc a liamcwork lbr ths nuts and oil crops Ianning dcvclopmcnt and lbr connectcd purposcs Mr. Speaker Sir, 'l'hc Nuts ancl Oil Crops llill. 2023 (Scnatc llills No. 47 ol'2023) was publishcd on I l[' March, 2023 and rcad lor thc lirst timc in thc Scnatc on Wcdncsday, l4'r'Ifcbruary.2024 and thcrcaller. thc Ilill stood committcd to thc Standing Committcc on Agriculture, Livcstock and Irisheries lbr consideration. In compliancc rvith thc provisions o['Articlc lltl ol'the Constitution and standing ordcr 145 (5) ol'thc Scnatc Standing Ordcrs. thc Cornmittcc procccdcd to undcrtakc public pa(icipation on thc Ilill. In this rcgard, thc Cornmittcc publishcd an advcrtiscment in thc Daily Nation and Standard newspapers on Friday, l6th Irebruary,2024, inviting members ol'thc public to submit writtcn mcmoranda to the Committee on the Bill. Additionally, the Committcs scnt invitations to kcy stakeholders inviting them to submit their comments on the Ilill. In total. thc Cornrnittcc rcccivcd rvrittsn subrnissions liom scvcn (7) stakcholdcrs namcly- 'l'hc Nut Proccssors Association ol'Kcnya (NU1-PAK),'l-he Council ol'Governors (COG), Ministry ol'Agriculturc and Livcstock Dcvelopmcnt (MoALI)), thc I-aw Society o1'Kcnya (l.SK).'l'hc Villagc Nut Company Limitcd. Pangwc larmcrs and stakeholdcrs in Kwalc Countl'. Mpckctoni llru.rcrs and stakcholdcrs in Larnu Cttunty. and Muktnvc larmcrs and stakcholdcrs in Krvalc County. Mr. Speaker Sir, 'l'hc Contrnittcc thcrcalicr procccdcd to considcr cxtcnsivcly thc provisions ol'thc llill and thc subntissions rcccivcd thcrcon. Ilascd on its dclibcrations. thc Colnrnittcc has tnadc various observations which arc sct out in Chaptcr'l'hrcc ol'this Rcport. Notably, thc final I t /

rccommcndation by thc Committcc is that thc Scnatc procecds to considcr and pass thc Nuts and Oils Crops Amcndment l\i11,2023 (Senate Bills no. 47 of 2023). Summary of Committee Observ:rtions 'l'hc Bill sccks to atncnd thc Crops Act,20l3, to rcstructurc thc rcgulation and managcment ol- nuts and oil crops, currcntly under thc mandate ol'thc Agriculture and Irood Authority (AIiA). by establishing a dedicated Nuts and Oil Crops l)cvcloprncnt lloard. 'l'he Committee observed that thc inclusion of nuts and oil crops u'ithin thc Al:A liarncwork has not signilicantly advanccd thc sector. 2. Nuts and oil crops arc csscntial contributors to Kcnya's cconomy. acctlunting lbr 1 .2Yo <tl'thc national Gross l)omestic Product (GDP) and 4.5Yo ol thc Agricultural (il)I'}. 'l'hc sub-scctor plays a kcy role in job crcation, income generation, forcign cxchangc carnings. and has signilicant potential for lood and nutrition security as u,cll as rnanulacturing. I)cspitc this potcntial. thc acreage and productivity cll'most nuts ancl oil crops rcrnain lorv. Icading to a hcavy'rcliancc on irnpclrted cdiblc oil. l:stablishing a dcdicatcd board will lbstcr bcttcr coordination and sustainablc valuc chain managcmcnt. 3. 'l'hcrc rvas a declinc in thc productivity and global cornpctitiveness ol'Kenya's nuts and oil crops scctor over thc vcars. l;actors such as inconsistcnt quality standards, inadcquatc rnarkct accsss. and lirnitcd invcstrncnt in proccssing havc hampercd grorvth. 'l'hc Ilill is thcrclbrc an important intcrvcntion to rcvitalizs thc industry hy cstablishing a cohcrent and robust rcgulatory liamcwork. 4. Agriculturc bcing a dcvolvcd Iunction, thc I]ill outlincs the roles o1' county govcrnmcnts in ntanaging thc nuts and oil crops scctor, cnsuring a dcccntralizcd approach to dcvclopmcnt. Countics are taskcd r.vith implcrncnting national policics. maintaining stakcholdcr registcrs, cnlbrcing good governancc, and supporting agricultural productivity through planting, replanting, and cxtension serviccs. Additionally. countics will promotc Iarmcr coopcrativcs, providc training, cnhance valuc addition. monitor pcst and discasc outbrcaks. and cncouragc product divcrsillcation.'l'his cnsurcs countics play a kcy rolc in driving thc scctor's growth and sustainability. 5. I,.nhanccd collaboration and stakcholder cngagcmcnt are srucial lbr thc succcss ol thc proposcd board. It crnphasizcd thc impo(ancc olactively cngaging with various stakcholdcrs. including larmcrs. proccssors. and county govcrnlncnts. I 7 t t

I

Strcngthcning collaboration and lbstcring inclusivity will ensurc that thc unique challcngcs across dill'crcnt rcgions arc cll'cctivcly addrcsscd. lcading to holistic scctor dcvcloptncnl. Summary of Committee Recommcndations 'l hc Committcc having consiclcrcd thc Nuts and Oil Crops Ilill. 2023 (Scnatc Ilills No. 47 ol'2023) and thc subrnissions rcccivcd thcrcon. rccourrncnds that thc IIousc approvcs thc llill togcthcr with thc proptlscd arncndrncnts. Mr. Speaker Sir, Ma.v- I takc this opportunity to comrlend thc Mcmbcrs ol'thc Comrnittcc lilr thcir dcvotion ancl cornrnitrncnt to duty. u'hich maclc thc considcration ol'thc Ilill succcsslul. I also rvish to thank thc Olllccs ol'the Speakcr and thc Clerk olthc Scnatc lbr the support cxtcndcd to thc Comrnittcc in undcrtaking this important assignment. Lastly, I wish to thank thc stakcholdcrs who appcarcd bclbrc thc Cornrnittcc to prcsent thcir cornrncnts on thc Ilill. Mr. Speaker Sir, It is now my plcasant duty. pursuant to standing ordcr l4[J ( 1 ). to prescnt the Rcport ol'the Standing Cornrnittcc on Agriculturc. Livcstock and Irishcrics on thc Nuts and Oils Crops llill.2023 (Scnatc Ilills No. 47 ol'2023). J [,\a )o l-s Signcd I)atc SEN. ST]N. DAVII) WAFUI-A WAKOLI, MP, CHAIRI'ERSON, STAN I)IN(; COM M II']'EI.] ON AGRICULl'U RE LIVES'I'OCK ANI) l)* 1 FISHERIES. I

ADOPTION OF THE REPORT OF THE STANDING COMMITTEE ON AGRICULTURE, LIVESTOCK AND FISHERIES ON THE NUTS AND OIL cRops BILL.2023 (SENATE BILLS NO.47 OF 2023) We, the undersigned Members of the Senate Standing Committee on Agriculture, Livestock, and Fisheries, do hereby append our signatures to adopt this Report - Name Designation Signature 1 Sen. David Wafula Wakoli, MP Chairperson I 2 Sen. Alexander Munyi Mundigi, MP Vice-Chairperson J Sen. Moses Otieno Kajwang', CBS, MP Member 4 Member 5 Sen. MwendaGalaya Mo Fire, CBS, MP Member \ 6 Sen. (Prof.) Tom Ojienda, SC, MP Member l Sen. Catherine Muma, MP Member tl Sen. Abass Sheikh, CBS, MP Mernber 9 Sen. Hezena Lemaletian, MP Member I --.-..- Sen. Wahome Wamatinga, MP a

CHAPTER ONE I.I BACK(;ROUNI) 'l'hc Nuts an<l Oils Crops llill, 2023 (Senatc llills No. 47 of 2023) was publishcd on I lth March, 2023 and read lbr the first tirne in thc Senate on Wednesday, 14th ltcbruary,2024 and thcrcaller thc Ilill stood cornmitted to the Standing Committee on Agriculturc. Livcstock and lrishcrics lbr considcraLion ( Appendix 4). Nuts and Oils Crops llill, 2023, (Scnatc Ilills No. 47 ol'2023) is a llill lbr an Act ol Parliamcnt to rnake provision lor thc production. proccssing, markcting and distribution ol Kcnyan nuts and oil crops and thcir products. 'l'he Bill sccks to establish thc Nuts and Oil Crop l)cvckrprncnt Iloard with thc aim ol' saving thc nuts and oil crops industry by ro,arnping thc policy and institutional ltamcwork within which the industry opcratcs. 'l'hc nuts and oil crops industry is a signilicant agricultural industry in Kcnya.'l'hcre is thcrckrrc a gcnuine nccd lbr a strong and robust policy and institutional lbundation to support and guidc ths rnultitudc ol' aclivitics. opcrations, and intcractions within thc inclustry so that thc growth ol'thc industry rcsults in a strcngthcncd agricultural economy Iirr thc country. (iovcrnrncntal issucs. regulatory challcngcs. national and international econornic realitics. and scicntilic rcliability arc sorlc ol'thc prcssing conccrns that nccd to bc addrcsscd by thc institution rcsponsiblc lirr thc nuts and oil crops industry. 'l'hc highlight ol'this Ilill is thc rcvarnping ol'thc nuts and oil crops farrning in ordcr to rnakc it a prolitablc. sustainablc and dcvcloprncnt-oricntcd activity. It proposcs to providc an avcnuc litr apprcciating the rncdicinal. acsthetic. touristic and artistic valuc ol various nuts and oil crops by cncouraging value addition in the processing ol'nuts and its products. 'l'hc llill thcrclirrc cstablishcs thc Nuts and Oil Crops Devcloprncnt Board. It furthcr providcs lor rcscarch and dcvcloplncnt to cultivatc a culturc ol'scientific cxccllcncc and prolcssionalisrn in nuts and oil crops larrning and industrial dcvclopmcnt. I.2 OBJECT OF THE I}ILL 't'hc principal ob.lcct ol'thc Ilill is to providc lbr the production. processing. markcting and clistribution ol'Kcnyan Nuts and Oil Crops and thcir products; cstablish thc Nuts and Oil 1 llclxtrt on thc Nuts unel Oil ('ops Bill, 2023 (Scnute llills Nrt. J7 oJ 2023) I

Crop Iloard; providc a framcwork fbr thc nuts and oil crops farming development and lbr conncctcd purposcs. 1.3 0vERvtEw oF'TIiE llll.l. l'hc llill contains thc lbllowing- l. Clause 4 cstablishcs thc Nuts and Oil Crops Devclopment Board, a body corporate with pcrpctual succcssion and a common seal. 2. Clause 5 o1'thc lnanagcrxcnt ol'thc lloard shall vcst in a IJoard rnadc up as lirllorvs- (a) a non-cxccutivc chairpcrson appointcd by the Prcsidcnt by noticc in thc Gazelle', (b) thc I'}rincipal Sccrctary rcsponsible lbr agriculturc; (c) thc I'}rincipal Sccrctary rcsponsible lirr tradc and investrncnts; (d) livc pcrsons rcprcscnting nuts and oil crops lartncrs nolninatcd by the larmcrs' co-opcrativc rvith thc largest mcrnbcrship in thc respcctivc countics: (c) two pcrsons nominatcd by the Council ol'County Govcrnors; and ( l) thc chicl'cxccutivc olllccr who shall bc an cx-olllcio mcmbcr ol'the lloard. 3. 'l'hc Cabinet Sccrctary shall, taking into account thc principlc that not morc than two-thirds ol'thc mcmbers should be ol'onc gender, appoint the members undcr subscction ( lXd) and (c) by notice inthc Gazette. 4. Clause 6 providcs lirr qualilications ol'appointmcnt as a rncmbcr ol'thc board il'that pcrson- (a) is a citizcn o1'Kcnyal (b) holds a dcgrcc liom a rccognizcd lJnivcrsity in Kcnya; and (c) rnccts thc rcquircmcnts ol'lcadcrship and integrity sct out in Chaptcr Six ol- thc Constitution. 5. Clause 7 olthc proposal provides that the Board rnembers shall serve lbr a tcrm of threc ycars rcncwablc lbr one Iurthcr terrn. 6. Clause 9 outlincs ths lirnctions ol'thc board rvhich arc ttl 2 lleport on the Nuts and Oil Cops Rill.2023 (Senate Bills No. 47 o/'2023)

(a) rcgulatc and protnotc thc dcveloprncnt ol'thc nuts and oil crop industry: (b) makc rccornmcndations to thc Cabinct Sccrctary, and ovcrscc thc implcmcntation ol'stratcgics, plans and policy rclating to thc nut and oil crop scct()r; (c) promotc thc divcrsification ofnuts and oil crop products and by-products: (d) promotc thc markcting o1 nuts and oil crops products and by-products in both local and lbrcign rlarkcts and prcscrvc thc compctitivcncss and rcliability ol' thc country as a produccr and supplicr ttl- nuts and oil crop products by cstablishing national acccptablc standards acccptablc in thc intcrnational markcts; (c) cstablish linkages rvith local and international rcsearch institutions to conduct scicntillc rcscarch and invcstigations in all arcas pcrtaining to thc dcvcloprncnt ol'tlre nuts and oil crop industry; (l) collcct. collatc and disscminatc inlbrmation on thc nut and oil crop industry including thc appropriatc tcchnology and practiccs to cnsure maximisation of-yiclds by larmcrs; (g) rcgulatc thc rnarkcting and thc cxportation ofnuts and oil crop products and by-products to conlbrm to thc qualitl- or lbod slandards rccognized in thc intcrnational rnarkct: (h) put in placc a liarncwork lilr thc capacity building and intcraction ol-various playcrs in thc nuts and oil crops industry: (i) dcvclop and cnlbrce thc nuts and oil crop industry standards and industry codc ol'practicc in collaboration with the Kcnya llureau of Standards; and (j) co-ordinatc capacitl,building training lor playcrs in thc nuts and oil crop valuc chain. 7. Clauses l3-15 provides lbr thc olllce ol'thc ChiclExccutive olllccr olthe Board. Clausc 13 cstablishcs thc olllcc ol'the chicl'exccutive olliccr who shall be cornpctitivcll' rccruitcd and appointcd by thc Iloard on such tcrms and conditions as thc lloard shall dctcnninc. lror a pcrson to bc qualilicd lbr appointmcnt as thc chicl'cxccutive olllccr. that pcrson - - l?eyn't on th( Nut.\ untl Oil ('op,s Rill, 2023 (Senure l)ills Nrt. J7 o/'2023) (a) is a citizsn ol'Kcnya: (b) holds a dcgrcc liotn a univcrsity recognizcd in Kcnya in law, agriculturc or 1l nancc; (c) has at lcast livc ycars' cxpcricncc in public administration or scnior rnanagernent; and 3

8. PART III - Role of county governments - On thc rolc of the County (lovcrnmcnt, thc proposal providcs that a county govcrnmcnt shall (a) irnplcmcnt thc National (iovcmmcnt policy relating to thc nuts and oil crop sector: (b) maintain an up-to-datc rcgistcr ol' nuts and oil crop growers, nursery opcrators and coopcrativcs or othcr associations in that county; (c) irnplcrncnt national and county legislation on nuts and oil crop industry codc ol'practicc. policics and guidclincs on corporatc govcrnancc in thc growcrs' in stitution s; (d) lacilitatc thc production ol nuts and oil crop in thc respcctive county by implcnrcnting and cxpanding thc planting and rcplanting program ol'nuts and oil crop trccs in stratcgic arcas idcntilicd as having thc most potcntial and thc rchabilitation and lcrtilization ol'cxisting nuts and oil crops trccs; (c) oll'sr cxtcnsion scrviccs on nuts and oil crop production and primary proccssing; (l) cncourage and prornotc thc organization o1'nuts and oil crop farmers'co- opcrativcs. associations. and organizations and providc thcm with credit and Iinancing schcmcs: (g) providc training. cxtcnsion scrvicc programs and disscrninatc inlirrmation to nuts and oil crop larrncrs, Iarm workcrs and proccssors rclativc to production tcchnology, markct systems. larm workers, entrepreneurial and other tcchnical skills and valucs. attitudc lbrmation and socio-cconttmic dcvcloprncnt strategics: (h) collaboratc rvith relcvant institutions so as to promotc acccss t<l crcdit and othcr llnancial scrviccs: (i) lbrmulatc and adopt a gcncral program ol- devclopmcnt geared towards incrcascd farm productivity, through planting or rcplanting ol' suitable sccdling varictics. rchabilitation and lbrtilization ol the nuts and oil crop, intcgratcd nuts-bascd lanning systems and product proccssingl (i) inspcct nurscrics and valuc addition industrics locatcd rvithin thcir rcspectivc count ics l (k) in collaboration with law cnlbrccmcnt agencies, cnhance sccurity in nuts and oil crop growing arcas; and 4 llcport ott rhc Nurs und Oil (ops llili,2023 (Scnura llills Ntt. 17 o1 2023) (d) rnccts thc rcquircr.ncnts ol'lcadcrship and intcgrity' sct out in chaptcr six ol' thc Constitution.

(l) rnonitor and rcport incidcnces olpcsts and diseasc outbrcaks to the lloard and lakc action in collaboration with thc Iloard and othcr relevant govcrnmcnt agcncics 9. Clause 22 crnporvcrs thc countics that producc nuts and oil crops to cnact county spccilic legislation to rcgulatc thc industry. 10. l'AItT lV - Regulatory provisions l2.Clause 24- liccnsing ol-proccssors: 'l'his proposal statcs that no pcrson shall cngagc in the proccssing ol nuts and oil crops and their products unless such person has applicd lbr. and obtaincd, a licencc in accordance with this Act. -lhe proposal gocs ahcad to givc morc details on liccnsing is donc. 13. Clause 25- rclusal to grant liccnsc: 'l'hc lcgislativc proposal providcs that thc county exccutivc cornmittcc rnernber may rclusc to grant a liccncc lvhcrc the application docs not cornply with thc requircrnents imposed under this Act or prcscribcd undcr thc rcspcctivc county lcgislation. In case ol'relusal. the CIIC mcmber is required to givc rcasons lur such rclusal. I;1. Clause 26- rcvocation ol' liccnsc: 'l'hc county' cxccutivc cornmittcc rrcmbcr tnay rcvoke a liccnce undcr this Act il'thc liccnsee - and in doing this, thc CIiC must givc rcasons lbr thc samc. (a) lails to rncct any condition imposcd by this Act or county lcgislation; or (b) surrcndcrs thc liccncc togcthcr rvith a noticc sctting out a rcqucst that thc liccncc bc rcvokcd l5.Clause 28-Appeal: An applicant who is aggrieved by thc dccision of the county cxcculivc committcc mcmbcr not to issue a liccncc undcr this Act may appeal to thc countv cxccutivc comrnittcc a-eainsl thc dccision rvithin thirty days of thc rcccipt ol' thc dccision. 5 lleport on rhe Nurs and Oil Cops Bill, 2023 (Senore Bills No. 17 o/ 2023) ll.Clause 23- rcgistration: 'l'hc proposal providcs that any pcrson or entity shall not carry out thc busincss of a nuts and oil crop grower. nursery opcrator. coopcrativc society or association unlcss such person is registered by thc respective county govcrnmcnl in which the busincss is to bc undertakcn- the proposal goes ahead to givc dctails on how thc rcgistration is donc.

16. (2) An applicant rvho is aggricvcd by thc dccision ol'thc county exccutivc committcc undcr subscction (l) may appcal to thc IIigh Court against thc dccision within lburtccn days ol'rcccipt ol'thc dccision. I 7. l'ART V - Financial provisions lll. Clause 29-'l'hc funds ol'the lloard. this clausc states that, thc funds shall consist oll-- (a) monies appropriatcd by I'arliarncnt lbr thc purposcs ol'thc Iloard; (b) such rnonics or assets as may accruc to or vest in the Iloard in thc courss ol' thc cxcrcisc ol'its powers or the pcrformance of it ltnctions under this Act or any othcr wriltcn law: (c) monics rcccivcd in rcspcct ol'thc lcvics and I'ccs: and (d) donations. grants. loans or gilis madc to thc lloard and approvcd by thc Cabinct Sccrctary lilr llnance. lg.Clauses 30-33 ol'the proposal givcs dctails on the annual cstimatcs, accounts. annual rcports and publications and llnancial ycar ol-thc board. 20. I')AItI' Vl - Miscellaneous provisions 22. Clause 36 on l)enaltics. thc proposal statcs that a pcrson who cornmits an oll'encc undcr this Act tbr which no penalty is providcd is liablc, on conviction,, to a llnc ol' not lcss than twenty thousand shillings or to imprisonment for a tcrm not exceeding six uronths. clr to both. 23.Clause 37 on rcgulations, on this. thc pr<lposal thc Cabinct Sccrelary rnay. in corrsultation with thc Iloard and thc Council o1'County Govcrnors, makc rcgulations gcncrally lbr thc cllcctivc carrying out the provisions olthis Act. Without prcjudice to thc gcneralily ol'subscction ( I ). the rcgulations may providc 1br - (a) conditions lilr rcgistratitln: (b) lorrns to bc uscd in thc application lbr rcgistration. and relatcd activitics: (c) thc proccss ol'application lbr rcgistration and rclatcd activitics, and 6 llclxtt't Ltn thc Nurs und Oil ('ops Bill. 2023 (Scnure Bill.s No. 17 of2023) 2l.ln this part. thc legislative proposal provides lbr: Incentives undcr clause 34 to bc givcn to pcrsons working in thc nuts and oil crops industry by the CS responsiblc lirr llnancc liorn timc to tirnc and this is to bc donc vidc a gaT.cttc noticc.

(d) thc rcgulation ol'contracts bctrvccn growcrs, proccssors and othcr players in thc nu1 industry. 24. Clause 38- Amendrncnts to thc Crops Act: '['hc first schcdulc to thc Crops Act be amcndcd by dclcting all thc nuts and oil crops to bc rcgulatcd by this proposal. 7 l?cport on the Nuts und Oil ('ops llill.2023 (Scnutc llills No. la o/ 202Jl

CHAPTER TWO 2.I oVERVIEW OF PUI}LIC I'ART'ICII'ATION ON THE BILI, 2.1.1 tN'tRot)ucTtoN 25.'l'hc Cornrnittce pursuant to thc provisions ol'Articlc ll8 ol'the Constitution and standing ordcr 145 (5) ol'thc Scnatc Standing Ordcrs. procccdcd to undertakc public parricipation on thc llill. ln this rcgard. thc Committcc published an advertiscrncnt in the /)ailr' Nalion and Sluntlard novspapcrs on'l'ussday.20t" lrcbruary.2024 inviting rncrnbcrs ol'thc public to submit rvrittcn rncrnoranda on thc Ilill. 'l'hc advcrtiscmcnt was also posted on the Parliament websitc and social mcdia platlonns. A copy ol'thc advcrtiscment is attached as Appendix 4. 26.Additionally. thc Cornmittcc scnt invitations to kcy stakcholdcrs inviting thcm to subnril thcir comrncnts on thc []ill. 2l .In total. thc Cornmittec receivcd rvritten subrnissions liorn scven (7) stakeholdcrs narncly: 'l'hc Nut Proccssors Association of Kcnya (NU1-PAK), l'he Council of (iovcrnors (CO(i). Ministry ol'Agriculturc and Livcstock Dcvclopmcnt (MOAI-l)). 'l hc Villagc Nut Cornpany Lirnitcd. Lau'Socictl'ol'Kcnya (l.SK). I)angrvc lanncrs and stakcholdcrs in Krvalc County, Mpckctoni l'armcrs and stakcholdcrs in Lamu County. Mukowc larmcrs and stakcholdcrs in Kwalc County and Lrnbu County Cl:C. Whilc thc dctailcd submissions by thc stakcholder, organizcd clausc-by- clausc, is sct out in a matrix attached as Appendk 5. 2.2 SUI}MISSIONS FROM RI'SOLUTIONS. STAKEHOI.,DT]RS AND COMMI'I'TEI.] l'hc Cornmittcc considcrcd thc rcccivcd submissions liorn stakcholdcrs as lbllows- 28. Long title: 'l'hc Ministry of Agriculture proposss that thc short titlc bc atncndcd and inscrt "Dcvcloprrrcnt" bclorc thc rvord "lloard". lo align rvith thc titlc ol'thc lr ill . Committee Recommendation - 'l'hc Comrnittee acccptcd thc proposal. 8 llcport ott rha Nuts unl Oil ('ops l)ill, 2023 (Senute llills No. 47 oJ 2023)

29. Interpretation Clause: Committee Recommendation - The Committee partially accepted the proposal. The Committee agreed to redraft the definition and move the list of crops to the Schedule. However, the provision granting the Cabinet Secretary the power to amend the Schedule is a substantive clause and should not be included in the definition-it should be provided for separately in the Bill.. tt. Law Society of Kenya - This definition should be reworked to ensure that the word that is being defined is not used in its interpretation. This will ensure that the definition is concise especially because section 2l(c) authorizes the county govemments to licence nut and oil processors. The Bill should also define the term "processing" since section 25 ( I ) states that processing ofnuts and oil crops shall not be done without a licence. Section 26(5) further creates an offence where processing is done without a licence and a hefty fine of KES one million or imprisonment for a term not exceeding two years or both. The magnitude of this penalty warrants definition of the word "processing". The term "Processor" has been defined to mean "a person who does the processing of nuts and oil crops. llt Committee Recommendation - The Committee accepted the proposal since they are oil seeds. Report on rhe Nurs and Oil Cops Bill,2023 (Senate Bills No. 47 of2023) Ministry of Agriculture proposed that the Nuts and Oil crops- Amend by deleting the definition and substituting thereof with'nuts and oil crops means any ofthe crops listed under the second schedule and includes such other crops as the Cabinet Secretary on the advice of the Board may declare to be a scheduled crop by notice in the gazette' . Since the crops are many, it may not be possible to capture all ofthem in a definition and therefore the need to introduce the second schedule where all of them will be listed. Committee Recommendation - The Committee accepted the proposal. Lamu farmers proposed the inclusion of cotton seed since they are nuts. 9

30. Clausc 3 on Objccts ol'thc Bill: 31. Ministry of Agriculture amends it by deleting the word 'industry' and substituting it u,ith thc rvord 'subscctor'. 'l'hc nuts and oils crops comprisc sevcral industries Committee Recommendation 'l.he Committcc accsptcd thc proposal. 32. Arncnd by substituting thc word "trcc" with "producc". 'fhis is bccausc we produce the produce not all nuts and oil crops are trees. Committee Recommendation -'l'hc Committec acceptcd the proposal. 33.Arncnd b1 sLrbstituting thc *'ord "bcttcr" rvith "irnprovcd" sincc thc tcchnical lan-euagc uscd is improvcd varictics and not bcltcr. Committee Recommendation -'l'hc Committec acceptcd the proposal 34. Anrcnd by inscrting a ncw objcct to rcad "l{cgulatc thc Nuts and Oil Crops Sub Scctclr" to cnsurc harrnonv and a lcvcl playing ground in thc sub-scctor. Committee Recommendation -'l'hc Committee acccpted thc proposal since it's thc rnain airn ol-thc Ac1. 35.Clause 3(a) on objects of the Bill be amended by Naturc Kenya to includc thc tcrrn "sustainablc" to prolnotc a rnorc cnvironrnentally conscious approach. hcncc to rcad: "3 (a) promote a globally competilive and sustainable nuts and oil crops induslrl:". Committee Recommendation -'l-hc Cornmittcc rcjcctcd the proposal. Whilc the intcntion is notcd. thc tcrrn 'sustainablc' is considcrcd subjcctivc and may introducc arnbig,uitl in intcrprctation. 36. Clausc 4 on Establishment of the Nuts and Oil Crops Development Board: Clause 4 (3) on Headquarters be arncndcd by thc Ministry ol Agriculture and l-ivcstock l)cvclopmcnt by substituting the tcrm "Kilifi" with "Nairobi" sincc thc production ol'nuts and oil crops sprcads across thc country and Nairobi is thc rnost ccntral. Committee Recommendation - 'fhe Comrnittcc acceptcd thc proposal with clarification that thc board rnay cstablish branchcs anywhcrc in Kcnya. Raport on thc Nurs untl Oil Cops llill. 2023 (Senute Bills Ntt. J7 o/ 2023) 10

37. Mpeketoni, Hindi, Mokoye farmers proposed that the hcadquarters be locatcd in Larnu Committee Recommendation -'l'hc Comrniltcc dcclincd thc proposal.'fhe Board mal'cstablish branchcs anyrvhcrc in Kcnya. Whilc thc contribution ol'l.amu I'artncrs is apprcciatcd. Nairobi ollbrs a rnorc ccntral and acccssiblc location lbr coordinating national opcrations. 38.Clause 5(l) bc amcndcd by thc Ministry of Agriculture by dclcting thc clause and inscrting "'l'he Iloard shall consist ol" to align with the marginal notcs. Committec Recommendation -'l'hc Cornmittcc acccptcd thc proposal sincc it's a draliing crror. 39. Mpeketoni farmers proposed that the rcprcscntatives of thc larmers in the Board should bc appointcd by larmcrs rcprcscntatives. l'o e lect persons who arc involvcd in nuts l'arrning. Committee Recommendation - 'l.hc Cornrnittsc dcclincd thc proposal. 'l'hc appointmcnt ol' board rnctnbcrs is guidcd by Mwongozo guidelincs and the appointmcnl as currcntly drallcd cnsurcs transparcncy, accountability. and mcrit- bassd sclcction. 40. Clausc 5(d) - Mpckctoni larrncrs proposcd thc rcduction o['thc rcquircmcnl ol'tcn ycars' sxpcricncc to llvc. 'l'o accommodatc youth rvho rnight lack thc long cxpcricncc but arc qualilicd. Conrmittee Recommcndation -'l'hc Comtnittcc acccptcd thc atncndrncnt 4l.Clause 5(d) (i) - Ilindi/ Mokoyc larmcrs proposcd that it should bc specilicd that thc larmcrs to bc norninatcd arc Irut and oil lhnncrs. Committee Recommendation - '['hc Comrnittec declincd the amcndment. 'l'hc introductory clausc ol'5(d) alrcady spccilics that. 42. t Iindi/ Mokol,c lanncrs proposcd that thc larrncrs rcprcscntativcs should bc incrcascd to lbur. Committee Recommendation- 'fhe Committce dcclined thc proposal sincc incrcasing the numbcr ol' Iarmer rcprescntativcs would affbct thc balancc o1 stakcholdcr rcprcscntation and rnay result in an ovcrly largc board, contrary to thc Mrvongozo guidclincs on board cornposition and govcrnancc. lleport on rhe Nuts and Oil ('ops Bill, 2023 (Senare Bill.s No 1z cl 2023) 11

43. Clause 5(3) IIindi/Mokoyc lhrrncrs proposcd thal thc Ilill should providc lbr thc youth and I'WI)s. Committee Recommendation- 'l-hc Committce dcclined thc proposal. 'lhc principtc ol'agc alrcady cncornpasscs thc rcprcsentation ol youth. and thc currcnt provisions cnsurc adcquatc rcprcscntation through gcndcr parity. rcgional. ethnic. and subscctor balancc. l,aw Socicty ol'Kcnya proposcd that thc I)S 'l'rcasury bc includcd in thc Mcmbcrship olthe Iloard becausc thc body creatcd would havc an impact on thc cxchequer. 'l'he costs of running the Iloard would have to be approvcd by thc National 'l'rcasury. 'l'his is bccausc thc composition of the IJoard does not includs rcprcscntation liorn thc PS 'l'rcasury. Committce Recommendation -'l'hc Committcc acccptcd thc proposal Naturc Kcnya proposcd to add clausc 5(l) (g) and (h) to rcad: "Clause 5 (l) (g), the Princ'ipal Secretarlt responsible for environment and climate chang,e or a represenlalive nominaled by lhe Principal Secretary in wriling. (h), a representalive of a national civil society organization active in environmenlal conservalion and, climote change issues". 't'his is to rcvisc thc curnposition ol'thc board to includc rcprcscntatitln liorn thc cnvironrncnt and clirnatc changc scctor to advocatc lor cnvironmcntal intcrcsts. Committce Recommendation -'l'hc Cornmittcc dcclincd this proposal. 'l'hc rnandatc ol'thc Iloard is lilcuscd on thc devclopmcnt and rcgulation ol'ths nuts and oil crops scct()r. Whilc cnvirtlnrne ntal considcrations arc imptlrtant, rcprcscntation liom thc cnvironmcnt and climatc changc scctor lalls outsidc thc corc rnandatc ol'thc Iloard. .14. Clausc 6 - Law Society of Kenya proposcd that thc qualilications lbr Board rncrnbcrs and thc Chairpcrson should bc scparatcd. 'l'hcrclirrc. thcrc is nccd to includc in thc bill a spccilic subscction providing lirr thc qualilications ol'thc Reynl ott thc Nuts ond Oil Cops Bill,2023 (Senare l)ill.s No. l7 o/ 2023) 1.2 lt. lll.

Chairpcrson to rcad: 6( l) No pcrson shall bc qualilicd lbr appointrncnt as thc Chairpcrson ol'thc lloarcl undcr subscction 5 (l )(a) unlcss such pcrson Committee Recommendation - 'l'he Comrnittcc partially accepted thc proposal. 'l'hc Committcc rcsolvcd to amcnd thc clause to apply thc proposed qualilications spccilically to thc Chairpcrson.'l'his is becauss thc currcnt composition ol'thc Iloard undcr clauss 5(l) includcs I'rincipal Sccrctarics who scrvc by virrue o1'thcir ollrcc, f-anncrs and a proccssor who arc rcquired to havc at lcast live ycars' experiencc in thc nuts and oil crops industry. and a nomince liom thc Council ol(iovcrnors. 'l'hcsc catcgorics alrcadl' havc thcir orvn cligibilitl' critcria. 'l'hc Chicl-l:xccutivc Olliccr's qualilications arc also addrcssed in a scparatc clausc.'l'hcrclbrc. it is appropriatr: ttr providc distinct qualilrcations lbr the Chairpcrson. givcn thc unique leadership and ovcrsight rolc they arc cxpcctcd to play. 45. Clause 6(b) on Qualification for appointmcnt proposed: Hindi/Mokoye farmers Iicmovc thc rcquircrncnt of a degrcc lbr l'arrncrs rcprcsentatives Amcnd by dclcting thc word 'llcscarchcr' and li.cplacc 'l;ive persons' with 'Iiour pcrsons'. Itcscarchcrs may bc brought on board administratively on a need basis. Committee Recommentlation -'['hc Cornmittcc acccptcd thc proposal. lll Amcnd to inscrt National 'l'rcasury to thc mcmbcrship. 'l.o align with thc Mrvongozo and thc State Corporation Act. llalxtt't ott th( ,^'lut,\ un(l Oil ('(ry.\ llill, 2023 l,lcnute llills No.'17 o/ 2023) 13 (a) holds a dcgrcc liorn a univcrsity rccognizcd in Kcnya; and (b) has at lcast tcn ycars' expcricnce in mattcrs rclating to management o1'a public or privatc institution. 5 ol'which shall be in scnior lcadcrship and managemcnt. 'l'his is bascd on thc lact that thc Chairpcrson plays a crucial lcadcrship rolc in guiding thc activitics ol'thc lloard and rnanagcrncnt includin-e irtl)ucncing thc dircction ol' policics and stratcgics.'l'hc Scction gcncrally providcs lbr the qualilication ol' rncrnbcrs ol' thc board. Committee Rccommendation -'l'he Cornrnittcc acccptcd thc proposal. .

(-'ommittec Recommendation -'l'hc Cornrnittcc acccptcd thc proposal. lv Committee Recommendation-'l'hc Cotnmittcc dcclincd thc proposal.'l'hc position ol-'proccssor' cnsurcs rcprcscntation liom a critical scgtncnt involvcd in adding valuc to nuls and oil crops. 'l'hc tcnn 'dcaler' is not uscd or dcl'incd in thc Ilill. and substituting it could cornpromisc thc clarity and intcnt ol'board rcprcscntation. 46.Clause 5(lXd) on composition of the Board Hindi/Mokoye larrncrs proposcd that it should bc arnsndcd to providc lbr a nornination proccss by thc l'anncrs' or dcalcrs' umbrclla associations. 'l'o providc lbr transparcncy and lairncss in thc nomination ol'thc board. Committee Recommendation - 't'hc appointrncnt ol'board mcmbcrs is guidcd by Mwongozo guidc and thc appointulsnt as currcntly dralicd snsurcs transparcncy. accountability. and mcrit-bascd sclcction. 47.Clause 5(d) -Councilol'Govcrnors proposcd Amcnd clause 5(lXd) and (e) to read as lilllows: ( l) 'l'hc rnanagcmcnt ol'thc Iloard shall vcst in a board consisting ol:-- (d) Ibur pcrsons with tcn ycars' cxpcricnce in thc nuts and oil industry appointcd by 1hc cabinct sccrctary in consultation with thc Council ol'County (lovcrn<trs. ol- rvhorn (i) tu'o shall bc larrncrs: (ii) one shall be a proccssor; and (iii) onc shall be a rcscarchcr (c) tu'o pcrsons norninatcd by thc Council ol'County (iovernors: lir align to thc provisions ol'Articlcs 6(2) and I tt9 ol'thc Constitution rvhich rcquircs thc two lcvcls ol'govcrnmcnt dischargc thcir lunctions in a consultativc rnanncr. Wc opinc that the nomination and subscquent appointment ol larmers and processors rcprcscntativcs should bc donc in consultation with thc Council ol'Govcrnors. Wc lirrthcr opinc that thc Countl' (iovcrnmcnts shcluld bc rcprcscntcd by two pcrsons to cnsure clll'ctivc rcprcsctltati()n. Arncnd 'dcalcr', by dctcting thc rvord 'processor' and substituting Lhcreol with Othcr actors nccd to bc rcprcsentcd on thc board. llcptrt ott the Nurs und Oil ('ops llill, 2023 (Scnute l)ills No. 17 oJ 2023) 14

Committee Recommendation- 'l'hc Committec rcicctcd the proposal. 'l'he appointrncnt ol'board rnctnbcrs is guidcd by Mrvongozo guide and the appointmcnt as currcntlv dralicd is sullicicnt. 4tl. Clause 7 on Term Appointment- i. Ministry of Agriculture and livestock Development proposcd to amcnd by dcleting '6' and rcplacing rvith '5'. 'l'o providc consistcncy in the numbcring. 49. CIausc 9 on functions of the lloard - MoALI) proposcd an arncndmcnt by inscrting a new function torcad 'carry out such othcr lunctions as lnay bc assigncd to it by this act or any othcr rvrittcn law while rcspecting thc rolcs ol'thc two lcvcls ol'govsrnment'. 'l'he provision catcrs to any ornittcd or unlbrcseeable emerging lunctions that may supporl thc []oard in achicving its mandate. Committec Rccommendation- 'l'hc Cornmittcc acccptcd thc proposal sub.jcct to rcdraliing. 't'hc provision rvill bc rcphrascd whilc prcscrving thc intcntion o1'accornmodating any additional Iunctions assigncd undcr this Act or any othcr writtcn law. l'hc Council of (iovcrnors proposcd to arncnd clauscs 9(b) and () to rcad as Iirllows l'hc Iloard shall-- (b) makc recommendations to the Cabinet Secretary and County Exccutive Cornrnittcc Mcrnbers on thc national stratcgics, plans and policy relating to thc nut and oil crop scct()r: (.i) I'rovidc capacity builcling and tcchnical assistancc to thc County (iovcrnrncnts in thc nuts and oiI crops valuc chairr. 15 Committee Recommendation -'l'hc Cornrnittcc acccptcd thc proposal. ll. (g) rcgulatc thc import and cxport of nuts and oil crop products and by- prclducts to conlbrm to thc quality or lood standards rccognized in the intcrnational markct: Raytt on the Nuts und Oil Cops Bill, 2023 (Senate Bills No. 47 of 2023)

ll I)clctc clauscs 9(a) (c)(h) and (k) in thcir cntircty Committee Recommendation- 'l'hc comrnittce dcclincd thc proposal to dclctc clauscs 9(a). (c). and (h). 'l-hcsc Iunctions arc cssential to thc mandatc ol'thc lloard a1 the national level and do not inliingc on the constitutional rolcs ol- county govcrnlne nts. 'l'hc comrnittcc acccptcd thc dclclion ol'clausc 9(k) as it relatcs to a lunction that lalls undcr thc mandatc ol'county govcrnlncnts. Committee Recommendation- Whilc the intcntion is noted, the tcnn 'sustainablc' is considcrcd sub.jcctivc and rnay introduce ambiguity in intcrprctatiorr. 50. Clause l0 on powers of the board thc Ministry olAgriculturc proposcd to a) amcnd by delcting the sub-scction and inscrting'Opcn such bank accounts Irlr its lunds as may bc ncccssary'. 'l'o givc the Iloard a lceway to opcn various bank accounts as lrav bc ncccssary. Committee Recommendation 'l'hc Cornrnittcc dcclinsd thc proposal. Allowing the Board to opcn rnultiple accounts without cxprcss Iimitations could rveakcn financial ovcrsight and accountability. llcport on rhc Nuts und Oil ('ops Bill, 2023 (,\anute Bills No. 17 o/ 2023) 1.6 'l'his is to align to thc provisions ol Part 2 sections I and 7 ol' thc Irourth Schcdulc to thc Constitution which stipulates that the agriculturc and tradc dcvcloprncnt and rcgulation ol'agriculturc and trade excluding intcrnational tradc ars lunctions lully dcvolvcd to County (iovcrnrncnts. Iurthcr to align with thc llnctions of National Govcrnmcnt in nuts and oil crops which arc; agricultural policy, institutions ol' rcscarch. intcrnational tradc and capacity building and technical assistance to the counties. lll. Nature Kenya proposcd to amend Clause 9 (a) to add thc tcrm "sustainable" and add a scction (1) to promotc thc avoidance of ccologically sensitivc arcas, to rcad'. "9 (a) regulate and promole lhe sustainable development of the nuts and oil crop industr1,". "9 (l)g,uide investors andfarmers to c:oid and prolect all ecologically sensilive ureas".

b) Arncnd to includc a gcneral powcr that 'ljndcrtakc any activity ncccssary lilr thc Iullllmcnt ol-any ol'its lunctions'. 'l'o givc lccway to thc []oard to e xsrcise powcr as thc nccd Inay arisc. Committee Recommendation -'l'hc Comrnittcc dcclincd thc proposal. 'l'hc proposcd inclusion ol'a gcncral powcr to "undcrtakc any activity ncccssary lbr thc lulllhncnt ol' any ol' its lunctions" was rc.iectcd. 'fhc Committcc dctsrrnincd that this is ovcrly broad and could grant the Board exccssivc discrction. A sirnilar provision alrcady cxists undcr thc I'unctions clausc. which allows ths lloard to carry out additional Iunctions as assigned by this Act or any othcr writtcn larv. ensuring that thc Iloard's po\e/crs rctnain clcarly' dclincd 51. Clause l2 on renumeration of the members of the Board the MoALD proposed to antcnd by dclcting thc clausc and inserting thc lbllowing ''l'he rcmuncration payablc to rncrnbcrs ol' thc lloard shall bc dctcrmincd by the Salarics and Ilcrrruncration Cornrnission'. 'l'hc constitution rnandatcs SItC to dctcnninc rcrnunerations and other allowanccs in thc public scctor. Committcc Recommendation- 'l'hc comrnittcc dcclincd thc proposal. 'l.hc proposcd clausc docs not takc atval' SIIC's mandatc. 52. Clause l3 on Chief Executive Officer (a) MoALD proposed i. Arncnd to providc lbr thc rcquircrncnt is a minimum ol'a bachclor's dcgree 'l hc qualilication ol'a Chicl'lrxccutivc Olllccr is managcrial. Committee Recommendation -'['hc Cornrnittcc dcclincd thc proposal. Ihc proposcd clausc alrcady rnandatcs that thc CIiO holds a dcgrcc in [aw, agriculturc. or linancc liorn a rccognizcd univcrsity. Committce Recommendation - l'hc Cornrnittcc acccptcd thc proposal (b)Law Society of Kenya proposed that Scction l7 ol'the llill on liability ol'lloard mcrnbcrs. of]lccls and cmployccs should includc thc lbllowing subscctions; (l) ll l?cport on thc Nurs und ()il (.tryts llill,2023 (Scnura Bill.r N'o. 17 o/ 2023) 1.7 Arncnd to providc lor a tcrm of thrce ycars to align with lhe Mwongozo.

I-iability shall not atlach to the tloard orto any olits membcrs, ollicers. agents or stall'lbr loss or damagc incurrcd as a rcsult olan act or omission done in good laith and rvithout ncgligcncc in thc pcrlbrmancc or cxcrcisc or thc intendcd pcrlbrmancc or cxcrcisc ol'any duty or powcr irnposcd by or conl'crrcd undcr this Act. (2) Any cxpcnses incurred by any pcrson in any suit or prosccution brought against him or her in any court, in rcspcct ofany act which is donc or purportcd to bc donc by him or hcr undcr thc dircction of thc Iloard, shall. if the court holds that such act was donc in good faith. bc paid out ol'the lunds ol'the Board, il'such cxpenscs arc not rccovcrcd by thc pcrson in such suit or prosccution. (3)'l'hc provisions ol'subscction ( l) shall not rclieve thc Board of thc liability to pay compcnsation or damagcs to any person for any injury to him or her, his or hcr propcrty <lr any ol'his or hcr intcrcsts caused by the excrcise of any power conferred b1' this Act or any othcr rvrittcn law or by thc I'ailurc, wholly or partially. ol any works. 'l'hc Scction providcs fbr labialization ol' Iloard mcmbcrs and stall'but docs not sullicicnlly cover any pcrson to whom a suit or prosecution is brought against in rospcct ol'any act which is donc or purported to bc donc by him or hcr in good laith and u ithrlrrt ncgligcncc. Committee Recommendation 'l'he Committcc acccptcd thc proposal (c) Clause 17 - Law Society of Kenya - proposcd Section 17 ol-the Bill on liability ol' lloard mcrnbcrs. olliccrs and crnployccs should include thc lbllowing subscctions; (l) Liability shall not attach to thc lloard or to any ol'its mcmbcrs. olficcrs. agents or stall' lilr loss or darnagc incurrcd as a rcsult ol'an act or ornission donc in good laith and without ncgligcncc in thc pcrlbrrnancc or cxcrcisc or thc intcndcd perlilrrnancc or cxcrcisc ol'any duty or powcr imposcd by or conl'erred undcr this Act. (2) Any cxpcnscs incurred by any pcrson in any suit or prosccution brought against hirn or hcr in anl'court. in rcspcct ol'any act which is donc or purported to bc donc by him or hcr undcr thc dircction ol'thc lloard. shall. il'thc court holds that such act was donc in good laith. bc paid out ol- thc f unds ol-thc lloard. if such cxpcnsss arc not rccovcrsd by thc pcrson in such suit or prosccution. (3)'l'hc provisions ol subscction (l) shall not rclicvc the Iloard ol'thc liability to pay conrpcnsation or darnagcs to any person lbr any injury to him or her, his or hcr propcrtv or any ol'his or hsr intcrcsts causcd by thc cxcrcisc ol-any powcr conlcrrcd Rcport on rhe Nurs ond Oil Cops Rill, 202 3 (Senate Bills Ntt. 17 of 2023) 18

b1' this Act or any othcr writtcn law or by thc lailurc. wholly or partially. ol'any u orks 't'hc Scction providcs lbr liability ol' lloard tncrnbcrs and stall' but docs not sullicicntly covcr any pcrson to whom a suit or prosccution is brought against in rcspcct ol'any act u,hich is donc or purportcd to bc donc by him or hcr in good laith and u,ilhout ncgligcncc. Committee Recommendation -'l'hc Cornnrittcc acccptcd thc proposal 53.Clause l9 - Law Society of Kenya - section relates to who has powers to sign documcnts on bchalf o1'the Iloard.'fhc scction is administrativc in nature and should not bc lcgislatcd. 'l'hcy rccomrncnd that thc scction be dclctcd. 'l'his will allow thc Iloard to sct its orvn rcgulations on thcss matlcrs with rcgard to applicablc lau's and policics. l;urthcr a proposal that in thc abscncc ol'thc Cl:O. thcn thc lloard shall authorize anothcr to sign would reducc thc work ol thc Iloard to administrativc issucs that would interfere with its ability to give ovcrsight to thc management. C-om rnittec llecommentlation -'l'hc Comrnitlcc acccptccl thc proposaI 54. Clause 2l - Role of County Governments - Council ol'County (iovcrnors - Arnend thc clauscs 2l(b), (c) and (i) to rcad as lbllows: 2l . A county governmsnt shall-- (b) rnaintain an up-to-datc rcgistcr ol'nuts and oil crop growcrs, nursery operators, u'archouscs. proccssors. coopcrativcs and other associations in that countyi (c) liccncc nuts and oil proccssors: ( i) collaboratc with rclcvant institutions so as to prornotc acccss to l'arrn inputs. allilrdablc crcdit and othcr l'inancial scrviccs. Add thc lirllowing Iunctions clausc immcdiately altcr clausc 2l (l) to read as fbllows: (rn) promotc thc clivcrsillcation ol'nuts and oil crop products and by- products. (n) I'}ut in placc a liarncr.vork lilr thc capacity building and intcraction <ll-l'arncrs and various playcrs in thc nuts and oil crops industry. 55.'l'o incorprlratc thc rvarchouscs rvhich storc nuts and oil crops and providc lbr lurther lirnctions ol'thc Countr, (iovcrnrncnts in linc rvith thc lrourth Schedule to thc ConstitLrtion. llcport on thc Nuts und Oil ('ops llill, :023 (Senate Bills No. 17 ol 2023) 19

5l Committec llecommendation -'l'hc Committcc partially accepted the proposa[. 'l'hc Conrrnittcc acccptcd thc atncndmcnts to clauscs 2l(b) and2l (i). Clausc 2l(c) was rc.jcctcd as liccnsing proccssors is thc board's lunction. Clausc 21(m) was acccptcd rvith thc amcndmcnt to add "at thc county level," recognizing thc irnportancc ol' local-lcvcl product diversiflcation. Clausc 2l(n) was rcisctcd as capacity building is primarily a national government rcsponsibilitl'. 56. Clause 2l (c) Role of the County Governments - Ministry ol'Agriculturc - Arncnd by dclcting thc clausc.'l'hc proccssing ol'nuts and oil crops is for the intcrnational markct and cntails thc irnportation ol'raw material. Conrrnitlee Recomme ndation '['hc Cornrnittcc acccptcd thc proposal Ilindi/ Mokoye farmcrs I'rovidc lilr- i. llxtcnsion scrviccs ii. I)rovisicln ol'larrn inputs and crcdit iii. Aggrcgationccntrcs Conrmittce llccommcndation- I ltc Contrnittcc dcclincd thc propttsal. 'l hesc llnctions arc alrcady providcd lirr undcr thc rolcs ol' County (iovcrntncnts as outlincd in thc Aot. and thcrcfbrc, additional provisions arc unncccssary. 58.Arncnd to providc lirr thc countics to provide a lramcwork for the establishment. Ihc cstablishn.rcr.rt ol-such lhcilities can also bc done by value chain actors and privatc scctors. Committee Recommendation -'l'he Committce declined the proposal. 'l'hc cstablishrncnt ol'such lacilitics is alrcady provided for under the rolcs ol'C'ounty (iovcrnrncnts in thc Act. 59.Nature Kenya - 'l'hcrclbrc. arncnd 21 (c) to rccognizc application ol'nct gain l'casibility modcls in dstcrmining stratcgic sitcs, by adding the term "suitable". and spccilying sites that should not bc used, to read: "21 (e) Facilitate the production of nuls qnd oil crop in the respeclive county by implementing and expanding the planting ond replanling, program of nuts and oil crops in slrategic areas identified as having lhe mosl suitable potential, avoiding natural forests, seasonal wellands llcport on rhe Nurs und Oil ('ops Rill, 2023 (Scnurc l)ills No. J7 oJ 2023) 20

ancl other critical biodiversity hahitats, and the rehabilitqtion and /brtilization o/ exisling nuts and oil crops". Cornmercial cultivation of some nuts and oil crops will have negative impacts to biodivcrsity and communities. 't'he bill needs to promote a balanccd development approach ',vhcrc sitcs idcntillcd as most potcntial Ibr cultivation are evaluatcd using nct gain I'casibility modcls to cstablish impacts on valucd ccological cotnponcnts within that ccosystcrn. Il'not lbasible, thc projccts should bc stoppod at selsction stage. Committee Recommendation- 'l'he Committee dcclined thc proposal. 'l'hc proposal to arncnd Clausc 2l (c) is rcjcctcd on thc basis that cnvirtlnmcntal sal-cguards and irnpact asscsslncnts arc alrcady govcrncd by cxisting laws such as IIMCA and thc l:lA Ilegulations. 60. Clause 22 - County-specific legislation. Ministry ol'Agriculture - Amcnd to delete thc cntirc clause. 'l'hc Constitution provides lor thc cnactmcnt olcounty legislation. '['hc clausc is likcly to crcatc doubls lcgislation which will lcad to conl'licts and conlusion bctwccn thc trvo lcvcls ol'govcrrlmcnt. National lcgislation is donc in consultation with thc county governments. Committee Recommendation- 'l'hc Cornrnittcc acccpted the proposal. 'l'he Constitution alrcady providcs a liarncwork lbr countics to cnact laws. 6l.Council of County Governors - Amcnd clausc 22(l)(c) to read as lirllows: 22(1) (c) thc grounds lbr thc re.jection ol'an application or canccllation of a liccncc issucd undcr this Act and mechanisms lbr Appcal. No justification provided. Committee Recommendation- 'l'hc cornrnittcc dcclined thc proposal. 'l'hc Comrnittcc acccptcd thc dclction ol'clausc 22. as ths Constitution alrcady providcs a liarnswork lbr countics to cnact thsir own laws. 62.Law Society of Kcnya - proposed that since thc mother Bill has already becn dcvclopcd. countics should only creatc rcgulations relating to production. proccssing. distribution and rnarkcting ol'nuts and oil crops that align with thc currcnt llill.'l'his will also rninirnizc contradictions likc Scction 22''1'' a" rcl'crring to thc countics developing legislation on thc crilcria lbr registralion and appcal rvhich havc latcr bccn addrcsscd in Part IV of the Bill on rcgulatory provisions. -l'his l?eytrt on thc Nuts und Oil ('ops Bill, 2023 (Senate l)ills No. 17 ol 2023) 21

scction providcs lbr dcvcloprncnt ol'county spccilic lcgislation wherc a county cngagcs in production. proccssing, distribution and marketing of nuts and oil crops. Committee Reconrmendation- 'l'hc committcc dcclincd thc proposal. 'l'hc Cornrnittcc acccptcd thc dclction ol'clausc 22. as thc Constitution already proviclcs a liamcrvork ltrr countics to cnact thcir orvn laws. l)clctc thc cntirc clausc. 'l'hc provisions arc not rcgulatory and are provided lbr undcr clausc 21. Committee Recommendation 'l'hc cornrnittcc dcclincd thc proposal. 'l'ltc comrnittcc agrccd to delctc Clausc 23 sincc it is not a rcgulatory clausc. 65. Clause 24 on registration - Law Society of Kenya - proposcd that a nuts and oil crop growcr bc dcllncd to cnsurc that thcrc is ccrtainty as to who lalls undcr that classilication lilr thc purposc ol'dctcrurinine u,ho qualilics lbr cxcmptions undcr thc sanrc scction. 'l'hc scction makcs rcl'crcncc to a nuts and oil crop growcr yct thc cntirc documcnt docs not dclrnc rvho a nuts and oil crop growcr. Committec Recommendation -'l'hc cornrnittcc accepted thc proposal to dcljnc a nuts and oil crop growcr as a pcrson who cultivatcs nuts and oil crop in Kcnya cxcluding a pcrson rvho cultivatcs nuts and oil crops lbr subsistcncc. 66. Mpeketoni farmers - Amcnd to rcgulatc thc crop and not the larmers. Committee Recommendation -'l'hc cornmittce dcclincd thc proposal. Registration ol'larmcrs is csscntial lbr cll'cctive planning. rcgulation. and traceabilily across thc llcport on rhe Nuts und Oil ('ops Bill, 2023 (Senute Bills No. 17 tt 2023\ 22 63. Clause 23 Rcgulation of nuts and oil Crops - Ministry of Agriculture Committee Recommendation 'l'hc Committcc acccptcd thc rcsolution. 64. Nature Kenya - 'l'hcrclbrc. amcnd to add 23 ( I ) to add thc abovc vicw. to rcad: "23 ( l) (h) linhanc'ing t'onservuliott, prolection and ntanagemenl of ull ec'ologic'ul11, .sen.sitive ureas. l:.xpand thc rcgulatory liarnc'rvork to cncompass climatc changc adaptation, halting ol'biodiversity loss. and pollution prcvcntion in addition to thc othcr listed cconornic ob.jcctivcs as this will enhancc contribution to thc global cllorts against thc triplc planctary crisis. 'l'he nccd fbr climate smart production cannot be ovcrcmphasizcd.

valuc chain. It also lacilitatcs targcted support Ibr f'armcrs through access to inputs, cxtcnsion scrvicss. and markct linkagcs. 67. llintli/ Mukowc farnrcrs - llcgistral.itln is a bttrdcn to litrrrlcrs Committee Recommendation-'l'hc Comrnittcc dcclincd thc proposal. I{cgistration cnablcs structurcd support and planning lbr thc sector. It is not intcnded to burdcn larrncrs but to cnsurc thcy bcnelit liorn govcrnmcnt programs, cxtcnsion scrviccs, ancl rnarkct acccss. Non-rcgistration docs not criminalizc the lartncr but may lirnit acccss to such bcncllts. 68. Clause 25 on Licensing of processors - Ministry ol'Agriculturc - Arnend the clausc by dclcling CIICM whcrc it appcars and replacing it with Board. l,icensing of proccssors should bc donc by thc board becausc it is intcndcd for thc cxtcrnal markct and proccssors ul.ilizc importcd rarv rratcrial. Committee Recommendation -'l'he committcc acccptcd thc proposal Naturc Kcnya - "25 (2) (c'), Environmenlal Impacl Assessment or Environmental and Soc'ial lmpac't Assessment license qs per the EMCA regulalions". Rcquirc Irnvironrncntal hnpact Asscssmcnt or I lnvironmcntal and Social hnpact Asscssurcnt approvals lur proccssors [o cnsurc cornpliancc with cnvironmcntal rcgulatittns as pcr I:nvironrncnt Managcmsnt and Coordination Act (l.,MCA) rcgulations atnong documcnts submitted to thc County lixecutivc Comrnittec Membcr in application lbr liccnsing. Committee Recommendation 'l'hc Comrnittcc dcclincd thc proposal. Compliancc rvith IrMCA rcgulatior.rs is alrcady a mandatory lcgal rcquircrncnt lirr activitics with potcntial cnvironmental impact. Including it in thc Ilill is thcrelbrc rcdundant, as all rclcvanl aetors arc alrcady obligatcd to obtain the ncccssary approvals undcr cxisting law. Committce Recommendation - Proposal acccptcd lbr licensing to bc donc by thc lloard. Amcnd to protscl cottagc industries. 'l'o protcct srnall scalc proccssors. l?eport on rhe Nuts und Oil Cops llill, 2023 (Senute Bills No. 17 o/ 2023) 23 69. Mpcketoni Farmers: i. I.iccnsing should bc donc by AIrA or thc lJoard. County govcrnrncnt is incll-cctivc.

Com m ittee llccom rncntl ation - I)roptlsa I acccptccl 70. Clause 25(2) - Ministry ol- Agriculturc - Arncnd thc sub-clause by dcleting county lcgislation and replacing it with thc rcgulations under this Act. Licensing will be donc undcr this act and not through county lcgislation. Committee Recommcndation - I)roposal acccplcd. 71. Arncnd clausc 25 to includc thc markcting agcnts. cxportcrs. and importcrs. 'l'hcy are irnportant actors in thc value chain and nccd to bc rcgulated. Committee Recommcndation - Proposal acccptcd 72. Clauses 26,27,28,29 - Ministry ol'Agriculturc. Arncnd by dclcting thc rvord 'count)' cxccutivc cornrnittcc rncrnbcr' whcrcvcr it appcars and rcplacing it u'ith thc words "l'hc lloard'. Liccnsing ol- thc playcrs should bc donc by thc board bccausc it is intcndcd lbr thc intcrnational rnarkcts and proccssors utilizc imported raw material. Committee Recommendation - Proposal acccptcd 73. Clause 29 on Appcals - Council ol'County (iovcrnors - Amcnd to rcad as lbllorvs: 29. (l) An applicant who is aggricvcd by thc dccision ol'thc county sxccutivc cornrnittcc rncrnbcr not to issuc a liccncc undcr this Act may appcal to thc County Crops I)isputc lLcsolution Cornmittcc against the decision within lburtccn days ol rcccipt ol'thc dccision. (2) A party aggrievcd by thc dccision ol'thc Disputc I{csolution Committcc rny appcal to thc I Iigh Cou( within fburtccn days of receipt ol'the decision. 'lb providc ol'Altcrnativc rncans ol'l)isputc Ilcsolution through the lbrmation ol'county disputc rcsolution cornrnittccs bclbrc a party can approach thc tligh Court. Committee Recommendation - l)roposal dcclincd the proposal. Whilc the Ilill initially providcd lbr liccnsing at thc county lcvcl, thc Committee rcsolved to assign this lirnction to thc lloard. As such. thc proposcd county disputc rcsolution mcchanisrn is no longcr applicablc. 'l'hc Comrnittcc. horvcvcr, acknou'lcdgcd thc nccd to includc a disputc rcsolution rncchanism undsr thc Iloard bclors court procccdings. lleytrt ott the Nuts und Oil ('ops Bill. 2023 (Scnutc Bill:; No. 17 o1 2023) 24

74. Clause 35 Ministry ol'Agriculture - Arncnd by dclcting thc words 'cotton industry' and rcplacing thcrrr with thc words 'sub-scctor'. 'l.hc usc of thc cotton industrf is not rclcvant to thc nuts and oil crops sub-scc1or. Committee Rccommendation - Proposal acccptcd Committee Recommendation - Proposal dcclincd thc proposal. 'l'hc Cornmittce notcd that thc Ilill alrcady providcs ltlr county govcrnmcnts to support l'armcrs through acccss to aflbrdablc crcdit lacilitics and also providcs lbr tax incentivcs. 76. Mpcketoni farmers - I)rovidc lilr incsntivcs to assist l-armsrs Committee Recommendation - Proposal dcclincd thc proposal. 'l'hc comrnittee notcd that it is providcd lbr undcr Clausc 35. 77. Clause 37 on penalties - Ministry of Agriculture - Amcnd to provide for a ljne not cxcccding livc hundred thousand shillings or imprisonment for a period not cxcecding onc vcar. or both. 'l'hc larv should providc lbr a maximum llnc and pcnalty. 'l'hc Kcs. 20.000 providcd lbr is low and rnay not dctcr malpracticcs. Committee Recommendation - I)roposal acceptcd 7tl.l{cgulations: (a) I,roccdurc lbr liccnsing of rnarkcting agcnts. transportcrs. proccssors. exportcrs. and importcrs; (b)'ltr providc lbr lbrms fbes to be paid lbr anything to bc donc undcr this Act: (c) Mcchanisms lbr conl'lict rcsolution; (d)'lir providc lbr thc subr-nission olrcturns and rcports by the holdcrs ol- liccnscs and pcrmits undcr this Act: (c) Standards and thc rlanncr ol'grading olthe nuts and oil crops (1) Itulcs Ior cnsuring lbod sal'cty including handling, transportation, processing, and rnarkct standards ol nuts and oil crops producc and products; (g)l'criods lirr which Iiccnscs and rcgistration ccrtillcates shall be issucd; (h) llcgulation ol'standard industry agrcctlrcnts; (i) I{cgulati<)n on colnpctitivc pricing and tnarkct acccss; and () Itcgulation on lbcs and lcvics. I?eport on rhe Nuts and Oil ('ops Rill, 202 3 (Senute Bills No.47 ttf2023) 25 75. Mpcketoni farmers - I)roviclc lirr a stabilization lund to support larlncrs.

a Committee Recommendation - Proposal accepted. 79. council of county Governors - Amend by introducing a new sub-clause 38(2)(e) immediately after 38(2)(d) to read as follows: 38(2)(e). Establishment of the County Crops Dispute Resolution Committee. No justification provided. committee Recommendation - Proposal declined the proposal. while the Bill initially provided for licensing at the county level, the Committee resolved to assign this function to the Board. As such, the proposed county dispute resolution mechanism is no longer applicable. 80. PART Vl-Miscellaneous Provisions - Ministry of Agriculture - Introduce a new clause to give the CS powers to impose a levy on the nuts and oil crops produce and products. It is important to have the levy for the sustenance, development, provision, and general benefit ofthe nuts and oil crops sub-sector. Committee Recommendation - Proposal declined the proposal. Levies will create financial burden to farmers. 81. clause 44 - Previous authorization - Ministry of Agriculture - Amend by deleting the word 'Authority' and substituting it with the word 'Board'. To provide clarity and consistency. Committee Recommendation - Proposal accepted Amend by inserting the following words after the words staff of the board; 'on the same or better terms. To provide adequate safeguards for the staff welfare. Committee Recommendation - Proposal accepted It Report on the Nuts and Oil Cops Bill, 202i (Senate Bills No. a7 of2023) 26 To ensure adequate provisions for regulations. 82. Clause 45 on Staff - Ministry of Agriculture: Amend by inserting a sub-clause 'If a person does not intend to become a member of staff of the Board, the person shall, within a period of 30 days

I liorn thc appointcd dai'givc noticc in rvriling to thc lloard.' l'airncss in stall' rvho rnight opt not to.ioin thc Nuts and Oil Crops Dcvcloprnsnt Iloard' Arncnd by inscrting a sub-clausc 'Any othcr membcr ol'stall' within thc Agriculturc and I'ood Authority may upon consideration and appointrncnt by thc Iloard bccornc a mcmbcr of stal'fo1'the Board aftcr the commcncemcnt ol'this Act.' l;airncss in stall'who might want to opt in and join thc Nuts and Oil Crops I)cvcloprncnt Iloard. Committee Recommendation- Proposal declincd thc proposal.'l'ransitional staliing arrangsmcnts arc alrcady addrcssed under thc Act. -l'he currcnt clause alrcady providcs lilr thc transl'cr of staffin the nuts and oil sector liom AIiA to thc ncw Iloard. 'l'ransitional stafling arrangements are adequatcly addrcsssd. Othcr Al'A stall'may apply competitivcly whcn vacancics arc advcrtiscd. in linc with public scrvicc proccdurcs. Amcnd to inscrt a sub-clausc "l'he stafl'pensions fund ol Kcnya Coconut I)cvcloprncnt Authority l)cnsion Schcme shall on thc appointcd day vcst in thc Iloard'. '['o managc thc stall'pcnsion lunds. Committee Recommendation - Proposal dcclincd thc proposal. Pcnsion mattcrs arc govcrncd by cxisting laws and regulations undcr thc Rctircmcnt llcnclits Authority. 'l'he vesting and managemcnt of pcnsion lunds must cornply rvith thcsc lcgal liarncworks and cannot be detcrmincd through this lcgislation. l tv. Repfl ott thc Nut.t ond {)il ('ops Bill.2023 (Settutc llills No. 17 d 2023') Committee Recommendation - I)roposal acceptcd.

a CHAPTER THREE I.3 COM M I]'-I E E O I}SE IiVA'I' IONS AN I) RI]COM M EN DATIONS 3. I. I COM M IT-T F] T] OI}SERVA'I'IONS {13.'l'hc llill sccks to arncnd thc Crops Act.20 13. to rcstructure the regulation and managcmcnt ol'nuts and oil crops. currcntly undcr thc rnandate oIthe Agriculture and l;ood Authority (n|n). by cstablishing a dcdicated Nuts and Oil Crops I)evcloprncnt Iloard. 'l'hc Committce obscrvcd that the inclusion of nuts and oil crops rvithin thc AIrA liarncwork has not signilicantly advanced the sector. 84. Nuts and oil crops are csscntial contributors to Kcnya's cconomy. accounting lbr I .2% ol'thc national (]ross l)orncstic l)roduct ((;t)P) and 4.5o/o o1'thc Agricultural (]l)P. 'l'hc sub-scctor plays a kcy rolc in job crcation. incomc gcncration. forcign cxchange carnings. and has signilicant potcnlial lbr lbod and nutrition security as u,cll as rnanulacturing. I)cspitc this potcntial. thc acrcagc and productivity olmost nuts and oil crops rcrnain lorv. lcading to a hcavy rcliancc on importcd cdiblc oil. l:stablishing a dcdicatcd board rvill Iostcr bcttcr coordination and sustainablc valuc chain rnanagcmcnt. 85.'l'hcrc rvas a dcclinc in thc productivity and global compctitivcncss of Kcnya's nuts ancl oil crops scctor <lvcr thc years. liaclors such as inconsistcnt quality standards. inadequatc utarl<ct acccss. and lirnitcd ir.rvcstrncnt in proccssing havc harnpcrcd grorvth. Ihc llill is thcrclilrc an inrportant intcrvcntion to rcvitalizc thc industry by cstablishing a cohcrcnt and robust rcgulatory liarncwork. Report on the Nuts antl Oil Cops Bill, 2023 (Senate Rills No. 47 of2023) 'l hc Conrnrittcc obscrvcd that: tl6. Agriculturc bcing a dcvolvcd lunction. thc Ilill outlincs the roles of county sovcrnlncnts in rnanaging thc nuts and oil crops scctor. cnsuring a dcccntralizcd approach to dcvclopntsnt. Countics arc taskcd rvith irnplcrncnting naticlnal policics, rnaintaining stakcholdcr rcgistcrs. cnlbrcing good govcrnance. and supportin-e agricultural productivity through planting. rcplanting, and cxtcnsion services. Additionally. countics will promotc larrner coopcrativcs, provide training, enhance valuc addition. rnonitor pcst and discasc outbrcaks, and encourage product divcrsilication.'l'his cnsurcs countics play a kcv rolc in driving thc scctor's growth and sustainabilitr'. 28

a ti7.l:nhanccd collaboration and stakcholdcr cngagcmsnt al'c crucial lbr the succcss ol' thc proposcd board. It crnphasizcd thc iruportancc ol'activcly cngaging with various stakcholdcrs. including Iarrncrs, proccssors, and county govcrnmcnts. Strcnglhcning collaboration and fostcring inclusivity will ensurc that thc unique challcngcs across dill'crcnl rcgions arc cllbctivcly addrcssed. lcading to holistic scctor dcvcloprncnt. 3. I.2 COM M I1'TF]E I{ECOM M ENDATIONS Ittl.'l'hc Comrnittcc having considsrcd thc Nuls and OilCrops Ilitl.2023 (Scnatc Ilills No.47 ol'2023)and thc subrnissions rcccived thsrcon. rccotntnends that thc Ilousc approvcs thc Ilill to-gcthcr rvith thc proposcd arncndmcnts. llrlxrt on the Nuts und ()il ('op.s Rill. 2023 (Sente Dill.s No. 17 o/ 2023) 29

a I,ISl' OF' AI'PENI)ICt]S Committcc Stagc Arncndmcnts to thc Ilill Minutcs ol' thc Standing Cotnrnittcc on Agriculture. Livestock and lrishcrics Appcndix II ppcndix lll 'lhc Nuts and Oils Amcndrncnt Ilill. 2023 Appcndix I Appcndix IV Advcrliscmcnt published in thc Duily Neil ion and Standard ncwspapcrs Appcndix V Matrix ol'thc subrnissions reccivcd by thc Committce on cach clausc ol' the llill and on gcncral mattcrs rclating to the Bill Appcndix VI C'opics ol'stakcholdcr suburissions on thc IJill Rep('rt on rha ittuts und Oil Cops Bill, 2023 (Sttnotc llills I'ltt. 1t o/ 202-l) 30

J APPENDIX 1: COMMITTEE STAGE AMENDMENTS TO THE BILL

I 22"n May,2ll25 'l'hc Clcrk ol'thc Scnatc [)arl iamcnt l]uildings NAIIIOBI Rtl: COMMIT'IEFI S'I'A(;E AMENDMENTS TO 'I'HE NUTS AND OIL cRoPS t)EVELOPMEN'l'BILL,2023 (SENATE IIILLS NO.',l7 OF 2023) N01'lCtl is givcn that Scn. I)avid Walula Wakoli. MP, Chairpcrson to thc Standing Committee on Agriculturc. Livcstock and lrisheries, intends to movc the lbllowing amcndmcnls to the Nuls and Oil Crops Deve lopment Bill, 2023 (Senate Bill No. 47 of 2023). at thc Committce Stagc- ('l.AliSt,l 3 TSAT Ilill bc amendcd by dcleting clause 3 and substituting thcrefor the lbllowing ncw clausc - 3. 'l'hc oh.lcct ol'this n ct is to (a) (b) (c) (d) (c) (r) rcgulate the nuts and oil crops subscctor: promote a globally compctitive nuts and oil crops subscctor; incrcasc production and proccssing of safe and healthy nuts and oil crops producc and products: promotc valuc addition 10 the nuts and oil crops producc and thcir products; gcncratc highcr income lbr the nuts and oil crops farmers and tradcrs by introducing improvcd varictics ol-thc nuls and oil crops producc with highcr yicld: providc continuous and sustaincd rcsearch and cxtcnsion scrviccs fbr thc developmcnt ofthc nuts and oil crops subscctorl Iacilitate thc introduction of modcm nuts and oil crops farming tcchniqucs and gcncral rnodcmizalion ol'thcir subscctori and 7 (e)

(h) implcmcnt clltctivc markcting stratcgics CLAUST].I THAT clause 4 of the Bill be amended - (i) in subclausc (3) dclcting thc rvord "Kilih" appcaring immcdiatcly alicr thc words "shall bc in" and substituting thcrclirr thc word "Nairobi"; and (ii) by inserting thc following new subclausc immediately alicr subclausc (3)- (3A) 'l'hc Iloard may cstablish such other offices in Kcnya as it may considcr ncccssary lbr thc dischargc ol'its lunctions undcr this Act. CI,AUSI.] 5 THAT clausc 5 o1 thc Ilill bc amcndcd (a) in subclause (1) by dclcting thc introduclory clausc and substituting thcrclbr thc lollowing ncw introductory clausc - ( 1) 1'he Board shall consist of- (b) by inserting thc following ncw paragraph immediatcly alicr paragraph (c)- (ca) the Principal Secretary responsible for financc or a representativc nominatcd by the Principal Secretary in writing; (c) in subclause ( 1) by deleting paragraph (d) and substituting thcrcfbr thc following ncw paragraph- (d) three persons with five ycars' experience in thc nuts and oil subsector appointed by the cabinet secretary, of whom- (i) one shall be a farmer representing the nuts subsector; (ii) one shall be a farmer representing the oil crops subsector; and (iii) onc shall bc a proccssor.; (d) by deleting paragraph (e) and substituting therelbr the fbllowing ncw paragraph- t 2

J (c) onc pcrson with llvc ycars' cxpcricncc in thc nuts and oil crops subsector, nominatcd by the Council of Governors; (c) in subclausc (2) by inserting the words "as a member of the Board" appearing in thc introductory clause immcdiatcly alier thc words "lor appointment". (t) by dclcting subclausc (3) and substituting thcrefor the ltrllowing new subclausc-' (3) In making appointmcnts under subsection (1)(d), the Cabinel Secretary shall cnsurc that not morc than two-thirds ol thc appointees are of the same gender, and shall givc duc considcration to divcrsity in agc. rcgional and cthnic background. CI,AT,ISE 6 ]'HA'l' clausc (r ol'thc Ilill bc amcndcd (a) in thc marginal notc by dclcting the word "mcmbcr" appearing immcdiatcly alicr thc word "appointmcnt as a" and substituting therefor the word "chairperson"; (b) in thc introductory clausc by deleting thc word "mcmbcr ol' thc lloard" appcaring immediatcly alicr thc words "appointmcnt as a" and substituting thcrcfor thc word "chairpcrson"; (c) in paragraph (b) by dclcting thc word "and" appearing immediately alter the rvords "in Kcnya:": and (d) by inscrting thc f-ollowinB ncw paragraph immediately altcr paragraph (b)- CI,ATJSE 7 THAT clausc 7 ol the Bill be amended by deleting thc words "section 6" and substituting therclor thc words "scction 5". 3 (ba) has knowlcdgc and cxpcricnce ol'at least ten years in matters rclating to agriculturc: and.

(]I,ATJSE 9 'I'tIA'l'clausc 9 ol'thc llill bc arrrcndcd (a) in paragraph (a) by deleting the words " crop industry" appearing immediatcly aftcr the words "nuts and oil " and substituting therelor the word "crops subscctor": t (b) by deleting paragraph (b) and substituting thcrclbr thc fbllowing paragraph- nc\\ (b) makc rccommcndations to thc Cabinct Sccrctary and county cxccutivc committcc mcmbcrs on thc nalional stratcgics, plans and policics rclating to thc nut and oil crop subscctor; (c) in paragraph (e) by deleting the words "crop industry" appearing immediately after the words "nuts and oil" and substituting thcrcfbr the word "crops subsector": (d) in paragraph (l) by dclcting thc words "crop industry" appcaring immcdiatcly' after the words "nut and oil" and substituting thcrcfor the word "crops subscctor". (c) In paragraph (g) by deleting the words "marketing and thc cxportation" appearing immediately after thc words "rcgulatc the" and subslituting thcrclbr the words "import and export"; (1) in paragraph (h) by delcting thc word "industry" appcaring immcdiatcly alicr thc words "nuts and oil crops" and substituting thcrclbr thc word "subscctor": (g) in paragraph (i) by - (i) deleting the words "crop industry" appearing immediately alier thc words "nuts and oil" and substituting thcrclor thc word "crops subscctor": and (ii) dcleting thc word "and" appcaring immcdiatcly aftcr thc words "Kcnya Bureau of Standards;" 4

(h) in paragraph (i) by delcting the word "coordinatc" appearing at the beginning ol' thc paragraph and substituting thcrefor thc word ''facilitatc". { (i) by dclcting paragraph (k) and substituting thercfor the lbllowing paragraph- lt(-'\\ (k) support counties in the development of mechanisms for farmer assistance including access to farm inputs and aflordable credit facilities; and () by inscrting thc lbllowing ncw paragraph immediately alier paragraph (k)- (ka) carry ou1 such othcr lunctions as may be assigncd by the Cabinct Secrctary or conferred under any other law. ('t..,\t:s1.. l0 'l'IIA'l'clausc l0 ol'thc Ilill bc amcndcd in subclausc (2) by dclcting thc word "industry" appcaring immcdialely alicr thc words "nuts and oil crops" and substituting thcrelbr thc word "subsector". CLAUSU lS 1'llA't clausc l3 ol'thc Ilill bc amcndcd in subclausc (3) by dclcting tho word "livc" appcaring immcdiatcly aftcr thc words "a term ol'' and substituting therclbr thc rvord "thrcc". ('t.,\t sl.. l7 TflA't thc Ilill bc amcndcd by dclcting clausc l7 and substituting thcrclor thc lbllowing new c lausc-- 17. (l) Liability shall not attach to the Board or to any ol'its members, olllccrs, agcnts or stall' lirr loss or dantagc incurrcd as a rcsult ol'an act rlr omission donc in good laith and without ncgligcncc in thc perlbrmancc or cxcrcisc or thc intcnded perlormance or exercise ol'any duty or power imposed by or conl-crred undcr this Act. 5

(2) Any expcnses incurred by any pcrson in any suit or prosecution brought against him or hcr in any coufl, in rcspcct of' any act rvhich is donc or purported to bc donc by him or hcr undcr thc dircction olthc lloard. shall. il' thc court holds that such act was done in good laith. bc paid out of'thc lunds ollhc Board, ifsuch cxpenscs arc not rccovcrcd by thc pcrson in such suit or prosccution. (3)'l'hc provisions ot'subscction ( I ) shall not rclicvc thc Iloard ol'thc liabilitl to pay compensation or damagcs to any pcrson lor any iniury to hinl or hcr, his or her propcrty or any o1'his or hcr intcrcsts causcd by thc cxcrcisc ol-any powcr conferrcd by this Act or any other u,rittcn law or by thc Iailurc. wholly or parrially, ol'any works. CI,ATJSI.] I9 THAT thc llill be amendcd by dclcting clausc l9 cr.Atist,t 20 THAT clausc 20 ol'thc Ilill bc amcndcd - (i) in subclause (1) by dcleting the words "Schedulc" appearing immcdiatcly altcr thc words "accordancc lvith thc" and substituting thcrelor thc u'ords "l:irst Schcdule" (ii) in subclause (2) by delcting thc words "Schcdulc" appcaring immcdiatcly'alicr the words "provided in the" and substituting therclbr thc words "liirst Schedule". (ll.AtrSl'.21 I'IIAT clausc 21 ol-thc Ilill bc an.rcndcd- (a) in paragraph (b) by inserting thc word "warchouses," immcdiately alier thc words "nurscry opcrators.": t, 6 (b) by dclcting paragraph (c):

a (c) in paragraph (d) by delcting thc word "crop industry" appearing immediately alicr thc words "nuts and oil" and substituting thcrclbr thc word "crops sttbscctor": (d) in paragraph (i) by inserting the words "farm inputs, affordable" immediately altcr thc words "promote access to"; and (c) bl inscrting a ncw paragraph immcdiatcly allcr paragraph (k) - (ka) promotc thc diversification o[-nuts and oil crop products and by-products at the county level;. CI,AUSl] 22 'l'llAl' thc llill bc anrcndcd by dclcting clausc 22 'l'IIA'l' thc llill bc amcndcd by dcleting clausc 23 ('t.AUSFt 25 'I'IIAT clausc 25 bc amendcd'- (a) in thc marginal notc by dclcting thc words "ofprocessors": (b) in subclausc ( l) by inscrting thc words "markcting. cxport or immcdiatcly allcr the words "in thc proccssing,"; import" (c) bf inscrting thc follorving nov subclausc immcdiatcly aller subclausc (l)- (lA) Dcspitc subclausc (1), thc lloard shall cstablish a simplificd and allbrdablc liccnsing liamcwork lbr small-scalc proccssors of nuts and oil crops intendcd lor dome stic markets. (d) by dclcting subclausc (2) and substituting therefor thc Iollowing subc lausc- ncw 7 cr.AUSti 23

(2) A pcrson r.vho intends to proccss nuts and oil crop products shall submit an application 1o the Board in thc prcscribed lbrm togcthcr with- (a) such documcnts and inlbrmation as thc lloard nray prcscribe: and (b) thc prcscribed l'ccs. (c) in subclausc (3) by- (a) dclcting thc rvords "A county cxccutivc committcc mcmbcr" appcaring in thc introduclory clausc and substituting thcrclbr thc lvords "l'hc Board': and (b) deleting thc words "county cxecutivc commiltec membcr" appcaring immcdiatcly alicr thc rvords "conditions as thc" in paragraph (b) and substituting thcrclbr thc word "lloard". (l) in subclause (4) by dcleting thc words "by thc respcctive county cxccutivc committce membcr," appcaring altcr thc rvords "thc applicant". (g) in suhclausc (5)by - (a) deleting the words "county executivc committcc membcr" appcaring immcdiatcly after the words "Whcrc thc" and substituting thcreltlr thc word "lloard": and (b) delcting the words "county cxccutive committcc mcmbcr" appcaring immediately after the words "grant a liccncc, thc" and substituting therefor the word "Board"; (h) by inscrting thc fbllorving no.l, subclausc immcdiatcly altcr subclausc (5) (5A) In this scction, a small-scalc proccssor mcans a pcrson or cntcrprisc cngaged in the proccssing of nuts and oil crops using limitcd capital invcstmcnt and basic or scmi-mcchanizcd cquipmcnt. whtlsc annual b a

I processing capacity does not excccd the threshold prescribed by the Board and whosc opcralions arc primarily intendcd to scrvc domestic markets. CLAl,lSll26 I'tlA'l' clausc 26 olthc Ilill bc arncndcd- (a) in subclausc ( l) by - (a) dclcting thc words "A county cxccutivc committee mcmbcr" appcaring at thc bcginning ol' the subclause and substituting therefbr thc word "'l'he []oard": and (b) dctcting thc words "county excculive committce member" appearing immcdiately allcr thc words "manner as the" and substituting thercfor the word "Board". (b) in subclausc (2) (a) by dclcting thc words "county cxecutivc commiltce membcr" appcaring in thc introductory clause and substituting thercfor the word "Board"; (h) by dclcting thc words "county cxccutivc committec member" appearing immcdiatcly alicr thc words "lodgcd with thc" in paragraph (c) and substituting thcrclbr thc word "[]oard". (c) in subclausc (3) by (a) dclcting thc rvords "'l'hc county cxecutivc committce mcmbcr" appcaring at thc bcginning ot'thc sltbclause and substituting thcrclbr the words "'l'hc Iloard": (b) deleting the words "county executivc committee member" appearing immcdiatcly attcr thc words "such conditions as thc" and substituting thcrclilr thc word "lloard". 9

CI,AUST] 27 THAT clausc 27 ol'the Bill bc amendcd- (a) in subclausc (l)-- (a) by dclcting thc words "'l'hc county cxccutivc comrnittcc mctnbcr' appearing at the bcginning o1'thc subclausc and substituting thcrclbr the word " Ihe lloard": and (b) by dclcting thc words "or county lcgislation" appcaring immcdiatcly alier the words 'this Acl' in paragraph (a). (b) in subclause (2) by deleting the introductory clausc and substituting thcrclbrc thc following new introductory clause- (2) 'l'hc Iloard shall not rcvokc thc liccncc undcr subscction ( I )(a) unlcss the lloard- ct,Ausu 28 'l'llA'l'clausc 28 ol'thc llill bc amcndcd -' (a) in subclausc (2) by - (a) deleting the words "1'hc counfy cxccutive commiltec mcmbcr" appcaring at the beginning ol'the subclausc and substituting thcrclbr thc words "'l'hc lloard"; and (b) deleting thc words "committec mcmbcr' appcaring immcdiatcly altcr the words 'pcriod as the' and substituting therefor the word 'Iloard'. (b) in subclausc (3) by dcleting thc rvords 'county cxccutivc committcc mcmbcr' appcaring immcdiatcly aftcr thc words 'such nttticc, thc' and substituting therefor the word 'Iloard': (c) in subclausc (4) by deleting the words 'county cxecutivc committce membcr' appearing immediatcly alicr thc words 'canccllcd by thc' and substituting thcrefor thc word'lloard'. 10 !,

( 't .,\ L :s l.l 29 'l'IIA'I'rhc Ilill be amcndcd by dclcting clausc 29 and substituting thcrelor thc fbllowing ncw clausc- 29.(l) An applicant who is aggrieved by the decision o[the I]oard not to issue a licencc undcr this Act may. within tourtccn (14) days lrom thc datc o[' rccciving thc dccision, submit a written appcal to thc lloard lor review. (2) 'l'he Board shall consider the appeal and provide a response within fourteen days ofrccciving thc appcal and rnay- (a) uphold its original dccisttlt.t: (b) reverse its decision and issuc the licence; or (c) takc any othcr action that is deemcd appropriatc for the implcmcntation ol' this Act. (3) I1'the applicant is still aggricved by the Board's dccision alIer thc review, the applicant may, within lburteen days of receiving the decision on the appeal to thc Board lilc an appeal to thc Iligh Court. Cl.Atrsli -15 THAT clausc 35 ol'thc Bill bc amended by- 11 (a) dctcting the word "industry" appcaring altcr the wt>rds "nuts and oil crops" and substituting thcrclilr thc rvord "subscclor": and (b) dclcting thc words "cotton industry" appcaring immediatcly allcr the words .dcvclopment ol'the' and substituting therelbr thc words "nuts and oil crops subsccttlr."' .

CI,AUSE 37 THAT clausc 37 ol'thc Ilill bc amcndcd in subclausc ( I ) by- (a) dcleting the words 'of not less than twcnty thousand shillings' appcaring immcdiately altcr the words 'to a llnc' and substituting thcrclirr thc words 'not cxcccding llvc hundrcd thousand shillings': and (b) dcleting thc words 'six months, or to' appcaring immcdiatcly altcr thc rvords 'not cxceeding' and substituting thcrcfbr thc words 'onc ycar or'. CI,ATISI.] 3It THAT clause 38 of thc Ilill be amcndcd by dclcting subclausc (2) and substituting therefor the following new subclausc- (2) Without prcjudicc to thc gcncrality ol'subscction (l). thc rcgulations may providc lor - (a) conditions lor rcgistration; (b) Ibrms 1o bc uscd in thc application lbr rcgistralion. and rclatcd activitics; (c) thc proccss ol'application lrlr rcgistration and rclatcd activitics: and (d) the regulation of contracts betwccn growcrs, proccssors and othcr players in the nut and oils subscctor industry; (c) the proccdurc lbr liccnsing and rcgulation ol' markcting agcnts. transporters, proccssors, cxportcrs, and importers: (f) the forms and fees payable in respect of any matter required to be done undcr this Act: (g) mechanisms lbr disputc rcsolution u,ithin thc nuts and oil crops subsector; 72

(h) thc standards and proccdures lbr thc grading and classiflcation of nuts and oil crops and thcir products: (i) food safety requirements, including standards for handling, transportation, processing, and marketing ofnuts and oil crops produce, and products; and () thc duration and rcncwal pcriods lbr liccnccs and registration ccrtificatcs issued under this Act. ct.AUsE {{ 1'IIAl' clausc 44 ol'thc llill bc amcndcd by dclcting thc word "Authority" appcaring immcdiatcly aller thc words "made by thc" and subslituting thcrelor thc word 'Board'. NI.]W CI,AUSIi ('1.,\t ist. .15.\ 'l'llA'I thc llill bc amcndcd by inscrting thc lbllowing nov clausc immcdiatcly aticr clause 35- -35A. Dcclaration of nuts and oil crops. (l) l'hc crops spccificd in thc Sccond Schcdulc arc nuts and oil crops lor purposcs ol'this Act. (2)'l'hc Cabinct Sccrctary may. by notice in the Gazetle, dcclare any other crop to bc a nuts and oil crop Ibr purposcs of this Act. scilt,.t)Ul.l.l 'tllA't rhc Ilill bc amcndcd by rcnumbcring thc cxisting Schcdulc as thc I"irst Schcdulc \ l1\\ S('l I l']l)t'l.l'l 'l'IlAl- thc Ilill bc amcndcd by insc(ing thc tollowing ncrv schcdulc immcdiate ly altcr thc lf irst Schcdulc- 13

SECONI) SCHEI)T]I,F] (s. 2) NUTS ANI) OIL CROPS 1. Coconut 2. Cashcw nu1 3. Macadamia nut 4. Ground nuts 5. Castor beans 6. Sunflower 7. Oil sccd jojoba 8. Shied saf llowcr 9. Sesame l0. Linseed l l.Oil I'alm 12. Ilambara nut I 3. Cotton sced CLAUSE 2 -ttlAl'clausc 2 ol'thc Ilill bc antcndccl bv (a) deleting thc dehnition o1'the word'nuts and oil crops'and substituting thcrclbr the following new definition- "nuts and oil crops" mcan thc crops sct out in thc Sccond Schcdulc to this Act: (b) deleting the definition of the word 'processor' and substituting therclbr thc lollowing new defi nition- "processor" mcans a pcrson who translbrms nuts and oil crops producc or products into various cnd-use products; and (c) inserting the lollowing new definitions in their propcr alphabclical scqucncc- L4

"grower" means a person, whether small-scale or large-scale, who cultivates nuts and oil crops for commercial purposes, and excludes those who grow nuts and oil crops solely for subsistence; "processing" means the alteration, extraction, refinement or transformation of nuts or oil crops from their raw state into a usable or marketable form, and includes shelling, drying, crushing, pressing, refining, fortifying, packaging or any other activity that enhances the value or shelf-life ofnuts or oil crops. LONG TITLE THAT the long title of the Bill be amended by inserting the word "Development" immediately after the words "establish the Nuts and Oil Crops". Dated . zllr|?eu 2025 David Wafula Wakoli, Chairperson, Standing Committee on Agriculture, Livestock and Fisheries 15

APPENDIX II: MINUTES OF THE STANDING COMMITTEE ON AGRICULTURE, LIVESTOCK AND FISHERIES

,/ St=::. t st*r ABSENT WITH APOLOGIES L Sen. Moses Kajwang', CBS, MP 2. Sen. Hezena Lemaletian, MP 3. Sen. (Prof.) Tom Ojienda, SC MP Chairperson Vice-Chairperson Member Member Member Member 1. Mr 2. Ms 3. Ms 4. Ms 5. Mr, 6. Mr, 7. Ms 8. Mr Peter Mulesi Caroline Njue Faith Cherutoh Winnie Atieno Hillary Cheruiyot Solomon Alubala Sarah Rukwaro Paul Katuta Member Member Member Clerk Assistant I Clerk Assistant II Legal Counsel II Audio Officer Research Officer III FiscalAnalyst III SAA SAA MIN/SEN/SC AI IO72I2O25 - PRELIMINARIES The meeting was called to order at 10:30 a.m. followed by a word of prayer and introductions. ) MINUTES OFTHE ONE HI]NDREDAND SIXTYTHIRD MEETING OFTHE SENATE STANDING COMMITTEE ON AGRICUT]TT]RE. LIVESTOCK AND FISHERIES. HELD ON THURSDAY. STH MAY. 2025. AT IO.OO A.M. IN COMMITTEE ROOM 5. MATN PARLIAMENT BUILDINGS PRESENT L Sen. David Wafula Wakoli, MP 2. Sen. Alexander Munyi Mundigi, MP 3. Sen. Wahome Wamatinga, MP 4. Sen. Mwenda Gataya (Mo Fire), CBS, MP 5. Sen. Sheikh Mohamed Abbas, CBS, MP 6. Sen. Catherine Muma, MP ST]CRETARIAT L TOr

MIN/SEN/SC N IO7 312025 - ADOPTION OF TI,IE AGENDA The agenda was adopted after being proposed by Sen. Wahome Wamatinga, MP and seconded by Sen. Mwenda Gataya Mo Fire, MP as follows - l. Prayer; 2. Adoption of theAgenda; 3. Confirmation of: i. Minutes of the One Hundred and Fifty Seventh sitting held on Wednesday, 26ft March, 2025 at9:00 a.m.; and ii. Minutes of the One Hundred and Fifty Eighth sining held on Wednesday, 26th March, 2025 at 2:00 p.m. iii. Minutes of the One Hundred and Fifty Ninth sitting held on Tuesday, Sft April,2025 at 10:00 a.m.; iv. Minutes of the One Hundred and Sixtieth sitting held on Thursday, 1Oth April, 2025 at l0:00 a.m.; v. Minutes of the One Hundred and Sixty Second sitting held on Tuesday, 6,h May,2025 at 10:00 a.m.; and vi. Minutes of the One Hundred and Sixty Third sitting held on Thursday, 8th May,2025 at 10:00 a.m. 4. Matters arising; 5. Consideration of the Stakeholder Submissions on the Nuts and Oil Crops Bill, 2023 (Senate Bills No. 47 of 2023) (Committee Paper No. 128). 6. Arry Other Business; and 7. Date of the Next Meeting andAdjournment. MIN/SEN/SCNIO74I2O25- CONFIRMATIONOFTHE MINUTE S OF THE PREVIOUS SITTING The Minutes of the One Hundred and Sixty First sitting held on Tuesday, 6th May, 2025 at 10:00 a.m. were confirmed as a true record of the proceedings after being proposed by Sen. Mwenda Gataya Mo Fire, CBS, MP and seconded by Sen. Wahome Wamatinga, MP. MATTES ARISING FITOM THE PITEV I()US MINUTES 2 MIN/SEN/SC N IO7 512025 - There were no matters arising. MIN/SEN/SCA/I07612025 - ADOPTION OF THE DRAFT REPORT ON THE NUTS AND OIL CROPS BILL. 2023 (SENATE BILLS NO. 47 OF 2023) COMMITTEE PAPER NO. 127)

The draft report on the Nuts and Oil Crops Bill, 2023 (Senate Bills No. 47 of 2023) was considered and adopted by the Committee after being proposed by Sen. Mwenda Gataya Mo Fire, MP and seconded by Sen. Wahome Wamatinga, MP. MIN/SEN/SCNIO77I2O25 - ANY OTHER BUSINESS 1. The Committee was informed that the brief on the irrigation schemes in Turkana would be ready by the end of the week. 2. The secretariat was tasked to investigate on the leasing of sugar companies. 3. The Committee resolved that the Senators in the mediation Committee on the . /Foodand Feed Control Coordination B1ll,2024 Q'{ationalAssembly Bills No. 2l \/ of 2024)would be briefed on the clauses under contention on Tuesday, l3s May, 2025 at 1:30 p.m. 4. The Committee was reminded of the scheduled CONE to Kisumu and Bungoma Counties from Sth to 126 May,2025. 5. Invite the Cabinet Secretary Principal Secretary and the privatization Commission to deliberate on the issues affecting the sugar industry. MIN/SENiSCN1O78I2O25- ADJOURNMENT There being no other business, the meeting adjourned at 11.20 a.m. The next meeting would be communicated by notice. SIGNEI) DATE za0x SEN. DAVID WAFULA WAKOLI, MP (CHAIRPERSOI9 3

6 J i lB!=t-===€. MINUTES OF THE ONE HUNDRED AND SIXTY SECOND MEETTNG OF I 'f stNF r( ST Or THE SENATE STANDING COMMITTEE ON AGRICULTURE LIVESTOCK AND FISHERIES HELD ON TUESDAY 6T[I MAY 2025 AT 1O.OO A.M. IN COMMITTEE ROOM 5 MAIN PARLIAMENT BUILDINGS PRESENT l. Sen. David Wafula Wakoli, MP 2. Sen. Alexander Munyi Mundigi, MP 3. Sen. (Prof.) Tom Ojienda, SC MP l. Sen 2. Sen 3. Sen 4. Sen 5. Sen 6. Sen SECRETARIAT Mr. Peter Mulesi Ms. Caroline Njue Ms. Faith Cherutoh Ms. WinnieAtieno Mr. Hillary Cheruiyot Mr. Solomon Alubala Ms. Sarah Rukwaro Mr. Paul Katuta Wahome Wamatinga, MP Mwenda Gataya (Mo Fire), CBS, MP Sheikh Mohamed Abbas, CBS, MP Catherine Muma, MP Moses Kajwang', CBS, MP Hezena Lemaletian, MP Chairperson Vice-Chairperson Member Member Member Member Member Member Member ) I 2 3 4 5 6 7 8 Clerk Assistant I Clerk Assistant II Legal Counsel II Audio Offrcer Research Offrcer Fiscal Analyst SAA SAA MrN/SEN/S C N t06st202s - PRELIMINARIES The meeting was called to order at 10:30 a.m. followed by a word of prayer and introductions. l- ) ABSENT WITH APOLOGIES

/L Ilr MIN/SEN/S C N 106612025 - ADOPTION OF THE AGENDA The agenda was adopted after being proposed by Sen. Alexander Mundigi, MP and seconded by Sen. Alexander Mundigi, MP as follows - l. Prayer; 2. Adoption of the Agenda; 3. Confirmation of: i. Minutes of the One Hundred and Fifty Seventh sitting held on Wednesday, 26th March, 2025 at 9:00 a.m.; and ii. Minutes of the One Hundred and Fifty Eighth sitting held on Wednesday, 26h March, 2025 at 2:00 p.m. iii. Minutes of the One Hundred and Fifty Ninth sitting held on Tuesday, 8h April,2025 at 10:00 a.m.; iv. Minutes ofthe One Hundred and Sixtieth sitting held on Thursday, l0s April, 2025 at 10:00 p.m.; and v. Minutes of the One Hundred and Sixty First sitting held on Thursday, l7h May,2025. 4. Matters arising; 5. Consideration of the Stakeholder Submissions on the Nuts and Oil Crops Bill, 2023 (Senate Bills No. 47 of 2023) (Committee Paper No. 126). 6. Any Other Business; and 7 . Date of the Next Meeting and Adjournment. The Minutes of the One Hundred and Sixtieth sitting held on Thursday, l0h April, 2025 at2:00 p.m. were confirmed as a true record of the proceedings after being proposed by Sen. Alexander Mundigi, MP and seconded by Sen. (Prof.) Tom Ojienda, SC, MP. There were no matters arising. 2 MIN/SEN/SC N 1067 /2025 - CONFIRMATION OFTHE MINUTES OFTHE PREVIOUS SITTING MIN/SEN/S C N 106812025 - MATTES ARISING FROM THE PREVIOUS MINUTES MIN/SEN/SCA/1069/2025 - ADOPTION OF AMENDMENTS TO THE NUTS AND OIL CROPS BILL. 2023 (SENATE BILLS NO. 47 OF 2023\ (COMMITTEE PAPER NO. 126) The amendments to theNuts and Oil Crops Bill,2023 (Senate Bills No.47 of 2023) were considered and adopted by the Committee after being proposed by Sen. (Prof.) Tom Ojienda, SC, MP and seconded by Sen. Alexander Mundigi, MP. MIN/SEN/SCNIO7OI2O25 - ANY OTHER BUSINESS

I , L Members raised concerns on the Committee only dealing with the legislative role of business (Bills) during Committee meetings and not focusing on the oversight role. 2. The secretariat was tasked to look into the issues affecting the agricultural sector inn Counties and invite the Governors to come explain to the Committee. 3. The Committee was informed of the scheduled CONE to Kisumu and Bungoma Counties from 8'h to l2s May,2025. MIN/SEN/S 07t/2025 - ADJOURNMENT There being no other business, the meeting adjourned at 11.30 a.m. The next meeting would be communicated by notice. SIGNED: \v.il DATE ).-P au\S SEN. DAVID WAFULA WAKOLI, MP (CHAIRPERSON) ) 3

f srN tNT Or 1,2 ? €t:r-.=t:. l. Sen. David Wafula Wakoli, MP 2. Sen. Wahome Wamatinga, MP 3. Sen. Mwenda Gataya (Mo Fire), CBS, MP Alexander Munyi Mundigi, MP (Prof.) Tom Ojienda, SC MP Sheikh Mohamed Abbas, CBS, MP Catherine Muma, MP Moses Kajwang', CBS, MP Hezena Lemaletian, MP l. Mr. Peter Mulesi 2. Ms. Caroline Njue 3. Ms. Faith Cherutoh 4. Ms. Winnie Atieno 5. Ms. Sarah Rukwaro 6. Mr. Paul Katuta 7. Ms. Juliet Masinde Chairperson Member Member Vice-Chairperson Member Member Member Member Member Clerk Assistant I Clerk Assistant II Legal Counsel II Audio Offrcer SAA SAA Media Relations Offrcer I. Sen 2. Sen 3. Sen 4. Sen 5. Sen 6. Sen MIN/SEN/S C NIO58I2O25 - The meeting was called to order at l0:2la.m. followed by a word of prayer and introductions. MIN/SEN/SCNIO'qI?OZ'. ADOPTION OFTHEAGENDA The agenda was adopted after being proposed by Sen. Wahome Wamatinga, MP and seconded by Sen. Mwenda Gataya Mo Fire, CBS, MP as follows - 1. Prayer; 1 F MINUTES OF THE ONE HUNDRED AND SIXTY FIRST MEETING OF THE SENATE STANDING COMMITTEE ON AGRICULTURE. LIVESTOCK AND FISHERIES. HELD ON THURSDAY. 17TH APRIL. 2025. AT IO.OO A.M. TN COMMITTEE ROOM 5. MAIN PARLIAMENT BUILDINGS PRESENT ABSENT WITH APOLOGIES SECRETARIAT ) PRELIMINARTES

2. Adoption of the Agenda; 3. Confirmation of: i. Minutes of the One Hundred and Fifry Seventh sitting held on Wednesday, 26th March, 2025 at 9:00 a.m.; and ii. Minutes of the One Hundred and Fifty Eighth sitting held on Wednesday,26th March, 2025 at 2:00 p.m. iii. Minutes of the One Hundred and Fifty Ninth sitting held on Tuesday, 8'h April,2025 at l0:00 a.m.; and iv. Minutes ofthe One Hundred and Sixtieth sitting held on Thursday, 1Oth April, 2025 at 2:00 p.m. 4. Matters arising; 5. Consideration of the Stakeholder Submissions on the Nuts and Oil Crops Bill, 2023 (Senate Bills No. 47 of 2023) (Committee Paper No. 124). 6. Any Other Business; and 7. Date of the Next Meeting andAdjournment. MIN/SEN/SCNIO6O/2025 - CONFIRMATION OFTHE MINUTES OFTHE PREVIOUS SITTING The Confirmation of minutes was deferred to the next sitting MIN/SEN/SCNIO6II2O25 - MATTES ARISING FROM THE PREVIOUS MINUTES There were no matters arising MIN/SEN/SCNIO62I2O25 - THE STAKEHOLDER SUBMISSIONS ON THE NUTS AND OIL CROPS BILL. 2023 SENATE BILLS NO. 47 OF 2023 COMMITTEE PAPER NO. 124 The legal counsel took the committee through the stakeholder submissions (matrix) on the Nuts and Oil crops Bill (Senate Bills No. 41 of 2023) as follows: I . Clause 5(d) - Mpeketoni farmers proposed the reduction of the requirement of ten years' experience to five. To accommodate youth who might lack the long experience but are qualified. Committee Resotution - The Committee accepted the amendment. 2. Clause 5(d) (D - Hindi/ Mokoye farmers proposed that it should be specified that the farmers to be nominated are nut and oil farmers. Committee Resolution - The committee declined the amendment. The introductory clause of5(d) already specifies that. Hindi/ Mokoye farmers proposed that the farmers representatives should be increased to four. 2

Committee Resolution - The Committee declined the proposal since increasing the number of farmer representatives would affect the balance of stakeholder representation and may result in an overly large board, contrary to the Mwongozo guidelines on board composition and governance. 3. Clause 5(3) i. Hindi/Mokoye farmers proposed that the Bill should provide for the youth and PWDs. Committee resolution - The Committee declined the proposal. The principle of age already encompasses the representation ofyouth, and the current provisions ensure adequate representation through gender parity, regional, ethnic, and subsector balance. ll Law Society of Kenya proposed that the PS Treasury be included in the Membership of the Board because the body created would have an impact on the exchequer. The costs of running the Board would have to be approved by the National Treasury. This is because the composition of the Board does not include representation from the PS Treasury. "Clause 5 (1) (d, the Principal Secretary responsible for environment and climate change or a representative nominated by the Principal Secretary in writing. (h), q representqtive of a national civil society organization active in environmental conservation ond, climate change issues". This is to revise the composition of the board to include representation from the environment and climate change sector to advocate for environmental interests. Committee resolution - The Committee declined this proposal. The mandate of the Board is focused on the development and regulation of the nuts and oil crops sector. While environmental considerations are important, representation from the environment and climate change sector falls outside the core mandate of the Board. 5. Clause 6 - Law Society of Kenya proposed that the qualifications for Board members and the Chairperson should be separated. Therefore, there is need to include in the bill a specific subsection providing for the qualifications of the Chairperson to read:6(l) No person shall be qualified for appointment as the Chairperson ofthe Board under subsection 5 (1)(a) unless such person- (a) holds a degree from a university recognized in Kenya; and Committee Resolution - The Committee accepted the proposal. 4. Nature Kenya proposed to add clause 5(l) (g) and (h) to read: 3

(b) has at least ten years' experience in matters relating to management of a public or private institution, 5 of which shall be in senior leadership and management. This is based on the fact that the Chairperson plays a crucial leadership role in guiding the activities of the Board and management including influencing the direction of policies and strategies. Committee resolution - The Committee partially accepted the proposal. The committee resolved to amend the clause to appty the proposed qualifications specifically to the Chairperson. This is because the current composition of the Board under clause 5(l) includes Principal Secretaries who serve by virtue of their office, farmers and a processor who are required to have at least five years' experience in the nuts and oil crops industry, and a nominee from the Council of Governors. These categories already have their own eligibility criteria. The Chief Executive Officer's qualifications are also addressed in a separate clause. Therefore, it is appropriate to provide distinct qualifications for the Chairperson, given the unique leadership and oversight role they are expected to play. 6. Clause 6(b) on Qualification for appointment - Hindi/Mokoye farmers proposed: Remove the requirement of a degree for farmers representatives Committee resolution - The Committee accepted the proposal ll Amend by deleting the word'Researcher' and Replace'Five persons' with 'Four persons'. Researchers may be brought on board administratively on a need basis. Committee resolutions - The committee accepted the proposal. lll Amend to insert National Treasury to the membership. To align with the Mwongozo and the State Corporation Act. Committee resolutions - The committee accepted the proposal. Amend by deleting the word 'processor' and substituting thereof with 'dealer'. Other actors need to be represented on the board. Committee resolutions - The committee declined the proposal. The position of 'processor' ensures representation from a critical segment involved in adding value to nuts and oil crops. The term'dealer' is not used or defined in the Bill, and substituting it could compromise the clarity and intent of board representation. 4 The Section generally provides for the qualification of members of the board. lv.

7. Clause 5(1Xd) on composition of the Board Hindi/Mokoye farmers proposed that it should be amended to provide for a nomination process by the farmers' or dealers' umbrella associations. To provide for transparency and fairness in the nomination of the board. Committee resolutions - The appointment of board members is guided by Mwongozo guide and the appointment as currently drafted ensures transparency, accountability, and merit-based selection. 8. Clause 5(d) -Council of Governors proposed Amend clause 5(lXd) and (e) to read as follows: 5. (l) The management of the Board shall vest in a board consisting of- (d) four persons with ten years' experience in the nuts and oil industry appointed by the cabinet secretary in consultation with the Council of County Governors, of whom- (i) two shall be farmers; (ii) one shall be a processor; and (iii) one shall be a researcher (e) two persons nominated by the Council of County Governors; To align to the provisions of Articles 6(2) and 189 of the Constitution which requires the two levels of government discharge their functions in a consultative manner. We opine that the nomination and subsequent appointment of farmers and processors representatives should be done in consultation with the Council of Governors. We further opine that the County Governments should be represented by two persons to ensure effective representation. Committee resolution - The Committee rejected the proposal. The appointment of board members is guided by Mwongozo guide and the appointment as currently drafted is suffrcient. 10. Clause 9 on functions of the Board - MoALD proposed an amendment by inserting a new function toread 'carry out such other functions as may be assigned to it by this act or any other written law while respecting the roles of the two levels of government'. The provision caters to any omitted or unforeseeable emerging functions that may support the Board in achieving its mandate. 5 ) 9. Clause 7 on Term Appointment- i. Ministry ofAgriculture and livestock Development proposed to amend by deleting '6' and replacing with '5'. To provide consistency in the numbering. Committee resolution - The Committee accepted the proposal. )

ll lll The Council of Governors proposed to amend clauses 9(b) and O to read as follows - The Board shall- (b) make recommendations to the Cabinet Secretary and County Executive Committee Members on the national strategies, plans and policy relating to the nut and oil crop sector; (g) regulate the import and export ofnuts and oil crop products and by- products to conform to the quality or food standards recognized in the international market; O Provide capacity building and technical assistance to the County Governments in the nuts and oil crops value chain. This is to align to the provisions of Part 2 sections I andT of the Fourth Schedule to the Constitution which stipulates that the agriculture and trade development and regulation of agriculture and trade excluding international trade are functions fully devolved to County Governments. Further to align with the functions of National Government in nuts and oil crops which are; agricultural policy, institutions of research, intemational trade and capacity building and technical assistance to the counties. Committee resolutions - The committee declined the proposal to delete clauses 9(a), (c), and (h). These functions are essential to the mandate of the Board at the national level and do not infringe on the constitutional roles of county governments. The committee accepted the deletion of clause 9(k) as it relates to a function that falls under the mandate of county govemments. Nature Kenya proposed to amend Clause 9 (a) to add the term "sustainable" and add a section (1) to promote the avoidance of ecologically sensitive areas, to read: "9 (a) regulate and promote the sustainable development of the nuts and oil crop industry". "9 (l) guide investors and farmers to avoid and protect all ecologically sensitive QTCQS,,, 6 Committee resolution - The Committee accepted the proposal subject to redrafting. The provision will be rephrased while preserving the intention of accommodating any additional functions assigned under this Act or any other written law. ii. Delete clauses 9(a) (c)(h) and (k) in their entirety.

Committee resolution - While the intention is noted, the term 'sustainable' is considered subjective and may introduce ambiguity in interpretation. I l. Clause l0 on powers of the board the Ministry of Agriculture proposed to a) amend by deleting the sub-section and inserting'Open such bank accounts for its funds as may be necessary'. To give the Board a leeway to open various bank accounts as may be necessary. Committee resolution -The Committee declined the proposal. Allowing the Board to open multiple accounts without express limitations could weaken financial oversight and accountability. b) Amend to include a general power that 'Undertake any activity necessary for the fulfillment of any of its functions'. To give leeway to the Board to exercise power as the need may arise. Committee resolution - The Committee declined the proposal. The proposed inclusion of a general power to "undertake any activity necessary for the fulfillment of any of its functions" was rejected. The Committee determined that this is overly broad and could grant the Board excessive discretion. A similar provision already exists under the functions clause, which allows the Board to carry out additional functions as assigned by this Act or any other written law, ensuring that the Board's powers remain clearly defined Committee resolution - The committee declined the proposal. The proposed clause does not take away SRC's mandate. l3.Clause 13 on Chief Executive Officer a) MoALD proposed i. Amend to provide for the requirement is a minimum of a bachelor's degree. The qualification of a Chief Executive Officer is managerial. Committee resolution - The Committee declined the proposal. The proposed clause already mandates that the CEO holds a degree in law, agriculture, or finance from a recognized university. Amend to provide for a term of three years to align with the Mwongozo. 7 lt Committee resolution - The Committee accepted the proposal 12.Clause 12 on renumeration of the members of the Board the MoALD proposed to amend by deleting the clauseand inserting the following 'The remuneration payable to members of the Board shall be determined by the Salaries and Remuneration Commission'. The constitution mandates SRC to determine remunerations and other allowances in the public sector.

The Section provides for liabilition of Board members and staffbut does not suffrciently cover any person to whom a suit or prosecution is brought against in respect ofany act which is done or purported to be done by him or her in good faith and without negligence. MIN/SEN/SCNIO63/2025 - ANY OTHER BUSINESS The Committee was informed that the Food and Feed Safety Control Bill,2024 form the National Assembly is due for mediation. The committee was also informed of the membership of the mediation. Committee as follows- a) Sen. David Wakoli, MP b) Sen. Alexander Mundigi, MP c) Sen. Peris Tobiko, CBS, MP d) Sen. Allan Chesang, CBS, MP e) Sen. Daniel Maanzo, MP f) Sen, Beatrice Akinyi Ogolla, MP g) Sen. Beth Syengo, MP 2. The Committee was informed that the Liaison Committee had allocated some money from the Supplementary II to the foreign budget for Committees. The Committee was also informed that the allocation would only be enough for three Senators and it was resolved that only Sen. Wahome Wamatinga, MP, Sen. David b) Law Society of Kenya proposed that Section l7 of the Bill on liability of Board members, officers and employees should include the following subsections; (1) Liability shall not attach to the Board or to any of its members, offrcers, agents or staff for loss or damage incurred as a result of an act or omission done in good faith and without negligence in the performance or exercise or the intended performance or exercise of any duty or power imposed by or conferred under this Act. (2) Any expenses incurred by any person in any suit or prosecution brought against him or her in any court, in respect ofany act which is done or puqported to be done by him or her under the direction of the Board, shall, if the court holds that such act was done in good faith, be paid out of the funds of the Board, ifsuch expenses are not recovered by the person in such suit or prosecution. (3) The provisions of subsection (l) shall not relieve the Board of the liability to pay compensation or damages to any person for any injury to him or her, his or her property or any ofhis or her interests caused by the exercise of any power conferred by this Act or any other written law or by the failure, wholly or partially, of any works. Committee resolution - The Committee accepted the proposal. 8

Wakoli, MP and Sen. Alexander Mundigi, MP would travel since they attend meetings consistently. 3. The Committee was informed that the Senator for Turkana had requested the Committee through the chairperson to do an inquiry on the irrigation schemes in the county. The secretariat was requested to prepare a brief on the irrigation schemes so as to guide the Committee during the inquiry. MIN/SEN/SC NIO64/2025 . ADJOURNMENT There being no other business, the meeting adjourned at 11.30 a.m. The next meeting would be communicated by notice. SIGNED: DATE:. \6)*q s SEN. DAVID WAFULA WAKOLI, MP (cHAIRPERSON) ) 9

, r$k€ l. Sen. David Wafula Wakoli, MP 2. Sen. Alexander MunYi Mundigi, MP 3. Sen. Wahome Wamatinga, MP 4. Sen. (Prof.) Tom Ojienda, SC MP 5. Sen. Mwenda Gataya (Mo Fire), CBS, MP ABSENTWITHA POLOGIES 1. Sen. Sheikh Mohamed Abbas, CBS' MP 2. Sen. Catherine Muma, MP 3. Sen. Moses Kajwang', CBS, MP 4. Sen. Hezena Lemaletian, MP SECRETARIAT Chairpcrson Vice-Chairperson Member Member Member Member Member Member Member Clerk Assistant I Clerk Assistant II Legal Counsel I Legal Counsel II Audio Officer SAA SAA Form 4 Student, Alliance BoYs Form 3 Student, Alliance BoYs Form 3 Student, Starehe BoYs l. Mr. 2. Ms 3. Ms 4. Ms 5. Ms 6. Ms 7. Mr. 8. Mr 9. Mr 10.Mr Peter Mulesi Caroline Njue Regina Munyao Faith Cherutoh Winnie Atieno Sarah Rukwaro Paul Katuta Chris Muriithi Tarel Jones Ian Kiprotich 1 I MINUTES OF THE ONE HUNDRED AND SIXTIETH MEETING OF THE SENATE STANDING COMMITTEE ON AGRICULTIJREi LIVESTOCK AND FISHERTES. HELD ON THURSDAY. IO }I APRIL. 2025. AT IO.OO A.M. IN COMMITTEE ROOM 5. MAIN PARLTAMENT BUILDINGS PRESENT ) Or F f Sttl

MIN/SEN/SC N IO5OI2O25 - PRELIMINARTES The meeting was called to order at 10:28 a.m. followed by a word of prayer and introductions. MIN/SEN/SC N IOSI I 2025 - The agenda was adopted after being proposed by Sen. Tom Ojienda, MP and seconded by Sen. Alexander Mundigi, MP as follows - l. Prayer; 2. Adoption of the Agenda; 3. Confirmation of: i. Minutes of the One Hundred and Fifty Third sitting held on Monday, 24th March, 2025 at l0:00 a.m.; ii. Minutes of the One Hundred and Fifty Fourth sitting held on Monday, 24th March, 2025 at 2:00 p.m.; iii. Minutes of the One Hundred and Fifty Fifth sitting held on Tuesday, 25th March, 2025 at 8:00 a.m.; iv. Minutes of the One Hundred and Fifty Sixth sitting held on Tuesday, 25n March, 2025 at 2:00 p.m.; v. Minutes of the One Hundred and Fifty Seventh sitting held on Wednesday, 256 March, 2025 at 9:00 a.m.; and vi. Minutes of the One Hundred and Fifty Seventh sitting held on Wednesday, 25th March, 2025 at2:00 p.m. 4. Matters arising; 5. Consideration of: i. The Report on the National Assembly amendments to the Coffee Bill,2023 (Senate Bills No. l0 of 2023) (Committee Paper No. 125); and ii. The Stakeholder Submissions on the Nuts and Oil Crops Bill, 2023 (Senate Bills No. 47 of 2023) (Committee Paper No. 124). 6. Any Other Business; and 7. Date of the Next Meeting and Adjournment. MINiSEN/SCA/1052/2025- CONFIRMATIONOFTHEMINUTES OFTHE PREVIOUS SITTING The Minutes of the One Hundred and Fifty Third sitting held on Monday, 24th March, 2025 at 10:00 a.m. were confirmed as a true record of the proceedings having been proposed by Sen. Tom Ojienda, SC, MP and seconded by Sen. Alexander Mundigi, MP. The Minutes of the One Hundred and Fifty Fourth sitting held on Monday, 24th March, 2025 at 2:00 p.m. were confirmed as a true record of the proceedings having been proposed by Sen. Alexander Mundigi, MP and seconded by Sen. Tom Ojienda, SC, MP. 2 I t ADOPTION OF THEAGENDA

The Minutes of the One Hundred and Fifty Fifth sitting held on Tuesday, 25th March, 2025 at 8:00 a.m. were confirmed as a true record of the proceedings having been proposed by Sen. Alexander Mundigi, MP and seconded by and seconded by Sen. Tom Ojienda, SC, MP. The Minutes of the One Hundred and Fifty Sixth sitting held on Tuesday, 25th March, 2025 at 2:00 p.m. were confirmed as a true record of the proceedings having been proposed by Sen. Alexander Mundigi, MP and seconded by Sen. Tom Ojienda, sc, MP. THE REI'ORT ON THE NATIONAL ASSEMBLY AMENDMENTS TO THE COFFEE BILL,2023 (SENATE BILLS NO. IO oF 2023) (COMMITTEE PAPEII No. 125 ) The Legal Oflicer took the members through the report on the National Assembly amendments to the Coffee Btll,2023 (Senate Bills No. l0 of 2023). The report was adopted having been proposed by Sen. Tom Ojienda, SC, MP and seconded by Sen. Wahome Wamtinga, MP. MIN/sEN/SCA/105512025 - THE STAKEHOLDER St]BMISSIONS ON THE NUTS AND OIL CROPS BILL 2023 SENATE BTLLS NO. 47 oF 2023 COMMITTEE PAPER NO. T24 The legal counsel took the committee through the stakeholder submissions (matrix) on the Nuts and Oil crops Bill (Senate Bills No. 47 of 2023) as follows: l. Clause I on the short title - The Ministry of Agriculture proposed that the clause be amended to insert the word "Development" before the word "Board" so as to align with the title of the Bill. Committee Ile solution The Committee accepted the amendment. 2. Clause 2 on definitions - the Ministry of Agriculture proposed that the definition of nuts and Oil Crops be amended by deleting the definition and substituting thereof with "nuts and oil crops means any of the crops listed on the second schedule and includes such other crops as the CS on the advise of the board may declare to be a scheduled crop by notice in the gazette". This is 3 l. MIN/SENiSCA/ IO53/2025 . MATTES ARISING FROM THE PREVIOUS MINUTES There were no matters arising. MIN/SEN/SCA/1054/2025 - ) )

because the crops are many, it may not be possible to capture all of them in a definition and therefore the need to introduce the second schedule where all of them willbe listed. Committee Resolution The Committee partially accepted the definition. Definition will say crops as listed on the second schedule. a) Amend by inserting a new interpretation. "Dealer includes a person engaged in either collecting, transporting, storing, distributing, or buying and selling nuts and oil crops produce products or by-products and includes marketing agents, processors, exporters and importers. This is because these value chain actors play a vital role in development of the nuts and oil crops sub-sector. Committee recommendations The Committee declined the proposal since the word dealer is not used anywhere in the Bill. b) The Law Society of Kenya proposed an amendment to define the word "processing". This is because the term has been defined to mean "a person who does the processing ofnuts and oil crops". Committee recommendations The Committee accepted the proposal to include the word processor and processing in the definition. c) Lamu farmers proposed the inclusion of cotton seed since they are nuts. Com mittee recommendations The Committee accepted the proposal since they are oil seeds. 3. Clause 3 on the Objects of the Bill, the Ministry of Agriculture and Livestock Development proposed that the clause be amended by deleting the word "industry" and substituting it with the word "subsector". This is because the nuts and oil crops comprised several industries. Committee recommendations 4 The Committee accepted the proposal

a) Amend by substituting the word "tree" with "produce"' This is because we produce the produce not all nuts and oil crops are trees. Com m ittee recommendations The Committee accepted the proposal. b) Amend by substituting the word "better" with "improved" since the technical language used is improved varieties and not better. Committee recommendations The Committee accepted the proposal. c) Amend by inserting a new object to read "Regulate the Nuts and Oil Crops Sub Sector" to ensure harmony and a level playing ground in the sub-sector. Committee recom mendations The Committee accepted the proposal since it's the main aim of the Act' d) Clause 3(a) on objects of the Bill be amended by Nature Kenya to include the term "sustainable" to promote a more environmentally conscious approach, hence to read: "3 (a) promote a globally competitive and sustainable nuls and oil crops industry". Committee recommendations The Committee accepted the proposal. 4. Clause 4 (3) on Headquarters be amended by the Ministry of Agriculture and Livestock Development by substituting the term "Kilifi" with "Nairobi" since the production ofnuts and oil crops spreads across the country and Nairobi is the most central. Committee recommendations The Committee accepted the proposal. a) Mpeketoni, Hindi, Mokoye farmers proposed that the headquarters be located in Lamu. 5 Committee rccommendations I

The Committee declined the proposal. The Board may establish branches anywhere in Kenya. l. The secretariat was advised to look into the issues that affect the Counties that the Committee will visit during the public participation on the Livestock Protecrion and Sustainability Bill, 2023 (Senate Bills No. 32 of 2023). This is to enable the Committee to pick up on the issues and interrogate them. 2. The Committee noted that Bills are not the only business that should be handled by the Committee and that the Committee should focus on oversight too. 3. Concern was raised on the composition of the Committee membership and noted that some members were not taking the committee seriously. MIN/SEN/S N105712025 - ADJOURNMENT There being no other business, the meeting adjourned at 11.30 a.m. The next meeting would be communicated by notice. SIGNED DArE: <l{L.L$ SEN. DAVID WAFULAWAKOLI, MP (cHATRPERSON) 6 5. Clause 5(l) be amended by the Ministry of Agriculture by deleting the clause and inserting "The Board shall consist of' to align with the marginal notes. Committee recom mendations The Committee accepted the proposal since it's a drafting enor. a) Mpeketoni farmers proposed that the representatives of the farmers in the Board should be appointed by farmers representatives. Committee recommendations The Committee declined the proposal. MIN/SEN/SCNIO56I2O25 - ANY OTHER BUSINESS

( Sl=-'=.:. MINUTES OF THE HUNDRED AND THIRTY SECOND (T32ND) SITTING OF THE STANDING COMMITTEE ON AGRICULTURE, LIVESTOCK AND FISHERIES HELD ON THURSDAY, 14TII NOVEMBER,2024IN COMMITTEE ROOM 2, BUNGE TOWER) AT 10:00 A.M. l. Sen. James Kamau Murango, MP 2. Sen. Alexander Munyi Mundigi, MP 3. Sen. Daniel Kitonga Maanzo, MP 4. Sen. Enoch Kiio Wambua, CBS, MP 5. Sen. David Wafula Wakoli, MP 6. Sen. Beth Kalunda Syengo, MP 7. Sen. Wahome Wamatinga, MP l. Sen. Allan Kiprotich Chesang, MP 2. Sen. Moses Kajwang, MP I l. Ms. Glbria Wawira 2. Ms. Caroline Njue 3. Ms. Regina Munyao 4. Ms. Belinda Ogolla 5. Ms. Hillary Cheruiyot 6. Ms. Rose Ometere 7. Ms. Juliet Masinde 8. Mr. Benard Sika Chairperson Vice-Chairperson Member Member Member Member Member Member Member Clerk Assistant I Clerk Assistant II Legal Counsel I Research Offrcer III Research Officer III Audio Officer Media Relations Offrcer SAA 1 77 t.NT or r srN PRESENT ) ABSENT WITH APOLOGIES SECRETARIAT F

\ MIN/SEN/S C A188412024- The Chairperson called the meeting to order at l0:15 a.m. followed by a word of prayer and introductions MIN/SEN/S C A188512024- The agenda was adopted after being proposed by Sen. Wahome Wamatinga, MP and seconded by Sen. Alexander Mundigi, MP as follows - 1. Prayer; 2. Adoption of the Agenda; 3. Confirmation of: a) Minutes of the l28th sitting held on Saturday, 26th October,2024; b) Minutes of the l29th sitting held on Monday, 28th October,2024; 4. Matters arising; 5. Consideration of the slakeholder submissions on the Nuts and Oil Crops Bitt, 2023 (Senate Bills No. 47 of 2023); 6. Any Other Business; and 7. Date of the Next Meeting and Adjournment. MIN/SEN/SCN886I2O24- CONFIRMATION OF MINUTES OF THE PREVIOUS SITTINGS The Minutes of the Hundred and Twenty Eighth (l28th) sitting held on Saturday, 26th October, 2024 at l0:00 a.m. were confirmed as a true record having been proposed by Sen. James Murango, MP and seconded by Sen. David Wakoli, MP. The Minutes of the Hundred and Twenty Ninth (l29th) sitting held on Monday, 28th October, 2024 at 10:00 a.m. were confirmed as a true record having been proposed by Sen. James Murango, MP and seconded by Sen. David Wakoli, MP. MIN/SEN/SCN887I2O24- MATTERS ARISING There were no matters arsing 2 PRELIMINARIES ADOPTION OF THE AGENDA

The Committee defened the consideration of the stakeholder submissions on the Nuts and Oil Crops Bill,2023 (Senate Bills No. 47of 2023) since the Legal Counsel responsible suddenly fell ill. The consideration of the Bill was pushed to Thursday, 2l't November, 2024. MIN/SEN/S C A1889 12024- L The Committee was informed of the upcoming retreat with the Ministry of Agriculture and Livestock Development from Thursday, l4th November,2024 to Monday, l8th November,2024. The chairperson urged members to attend the retreat; 2. The Research officer Mr. Hillary Cheruiyot was tasked with preparing a research brief on all the parastatals the Committee will meet with in Mombasa to apprise members on some of the projects they have or have not done/completed and the budgets allocated to the parastatals. 3. The Committee resolved to go to Arusha Tanzania for its foreign travel. 4. The secretariat was asked to invite the Ministry of Arid and Semi-Arid Lands and Regional Development to the retreat in Naivasha on 21't to 25th November, 2024; and 5. The Commiftee did not accede to the invitation from the Kenya Institute of Planners to attend the lSth Annual Planners convention 2024 since the House will be in session that week. M IN/S E N/S C Al 89 O I 202 4 - DATE OF NEXT MEETING AND ADJOURI{MENT The meeting was adjoumed at I l:00 a.m. and the next meeting will be by notice SIGNED:..."r{m SEN. JAMES KAMAU MURANGO, MP (cHATRPERSON) 3 / ) ) MIN/SEN/S C AI 888 12024 - CONSIDERATION OF THE STAKEHOLDER SUBMISSIONS ON THE NUTS AND OIL CROPS BILL.2023 (SENATE BILLS NO.47 OF 2023) ANY OTHER BUSINESS DATE: ...28111124..

I €n=-=...=*' MINUTES OF THE NINETY-SECOND (92ND) SITTING OF THE SENATE STANDING COMMITTEE ON AGRICULTURE, LWESTOCK AND FISHERIES, HELD ON THURSDAY,2lST MARCH' 2024 AT THE FIRST FLOOR BOARDROOM, RED CROSS BUILDING 10:0O A.M. PRESENT i. Sen. James Kamau Murango, MP 2. Sen. Alexander MunYi Mundigi' MP 3. Sen. Daniet Kitonga Maanzo' MP 4. Sen. David Wafula Wakoli, MP 5. Sen. Beth Kalunda SYengo, MP ABSENT WITH APOLOGIES 1. Sen. Enoch Kiio Wambua, CBS' MP 2. Sen. Wahome Wamatinga, MP 3. Sen. AIIan KiProtich Chesang' MP 4. Sen. Moses Kajwang, MP Chairperson Vice-ChairPerson Member Member Member Member Member Member Member Clerk Assistant I Clerk Assistant II Legal Counsel II Research Officer III Media Relations Officer Protocol Officer Audio Officer Sergeant-at- Arms 1. Ms. 2. Ms, 3. Ms 4. lvft. 5. Ms 6. Ms 7. Ms 8. Ms Gloria Wawira Caroline Njue Regina MunYao Hillary CheruiYot Violet NalianYa Pamela Kimwatan Rose Ometere Farhiya Ali MIN/SEN/SCA/62612024- PRAY The Chairperson called the meeting to order at l0'00 a'm' followed by a word of prayer ER AND INTRODUCTIONS 1 and introductions ) SECRETARIAT

\ MIN/SEN/SC A/62712 024- ADOPTION OF THE AGENDA The agenda was adopted after being proposed by Sen. Daniel Kitonga Maanzo, Mp seconded by Sen. Beth Syengo, Mp and Mp as follows_ L Prayer, 2. Adoption of the Agenda; 3. Confirmation of: i. Minr.rtes of the 83rd sitting held on Friday, lst March, 2024; ii. Minutes of the 84th sitting held on Saturday, 2ndMarch,2024; iii. Minutes of the 85th sitting held on Sunday, 3rdMarch,2024; iv. Minutes of the 86rh sitting held on Thursday, lthMarch,2024; v. Minutes of the 87th sining held on Monday, 1lth March, 2024; and 4. Matters arising; 5. Meeting with stakeholders Minisrry of Agriculrure, coG, LSK, KEpSA, and KNCCI on the Nuts and oil crops Development F,fi,2023 (senate Bills No. 47 of 2023) 6. Any Other Business; and 7. Date of the Next Meeting ancl Adjournment. MIN/SEN/S cAt628t2024- CON TION OF MINUTES FIRMA The confirmation of minutes was deferred to the next meeting MIN/SEN/SCA 1629t2024- MATTER ARISING The agenda on matters arising was deferred to the next meeting MEETIN G WITH STAKEHOLDERS ON THE NUTS AND OIL CROPS DEVELOP IVIENT BILL. 2023 (SENATE The invited stakeholders were late in attending the meeting the committee resolved that they submit written memoranda for the consideration of the commifiee. MIN/SEN/S cA/631/2024- ANY OTHER BUSINE SS Members deliberated on matters that were pending on the Sugar Bil,2o22and resorved as follows- on the delineation of sugar catchment areas, the delineated catchment areas 2 remain as outlined in the first schedule MIN/SEN/SCAi63O/2024- BILLS NO.47 0F 2023)

f ii. In the case of the breakdown of factories and overproduction of cane by outgrowers, the Bill introduces a provision that allows millers to enter into an agreement where the affected miller whose machinery has broken down may enter an agreement to have cane processed by another miller or out-growers may supply cane to miller outside of their catchment area subject to the approval of the board. iii. Introduce a provision to aliow a commercial grower to seek the approvai of the board to deliver cane outside oftheir designated catchment area' iv. Members reiterated that the catchment areas are for purposes of delivery of cane and election of rePresentatives. v. The Committee table its report on its consideration of the Sugar Blll,2022 on Tuesday, 26th March 202. vi. The Committee retreats to conclude and adopt its report on the Sugar 8111,2022 DATE OF NEXT MEETING AND ADJOIIRNMENT ) tt " meeting adjourned at 10:20 a.m. and the next meeting will be by notice SIGNED: DATE ,.-Lk'l'* SBN. JAMES U GO.MP (CIrAIRPERSOr\I) 3 MIN/SEN/SC A I 632 12024- )

IBr-^ ----r. MINUTES OF THE EIGHTY.SECOND SITTING OF THE SENATE STANDING COMMITTEE ON AGRICULTURE, LIVESTOCK AND FISHERIES, HELD ON THURSDAY 29 1I FEBRUARY, 2024 AT FIRST FLOOR BOARDROOM, REDCROSS BUILDING AT IO.OO AM PRESENT l. Sen. Alexander Munyi Mundigi, MP 2. Sen. Wahome Wamatinga, MP 3. Sen. Beth Kalunda Syengo, MP 4. Sen. David Wafula Wakoli, MP l. Sen. James Kamau Murango, MP 2. Sen. Enoch Kiio Wambua, CBS, MP 3. Sen. Allan Kiprotich Chesang, MP 4. Sen. Daniel Kitonga Maanzao, MP 5. Sen. Moses Kajwang, MP SECRETARIAT l. Ms. Gloria Wawira 2. Ms. Caroline Njue 3. Mr. Reinhardt Choge 4. Mr. Malcolm Mgugi 5. Mr. Hillary Cheruiyot 6. Ms. Violet Nalianya 7. Ms. Rose Ometere 8. Ms. Sarah Rukwaro Vice-Chairperson Member Member Member Chairperson Member Member Member Member Clerk Assistant Clerk Assistant Clerk Assistant Legal Counsel Research Officer Media Relations Officer Audio Officer Sergeant-at- Arms ABSENT WITH APOLOGIES st Or t srN

The agenda was adopted after being proposed by Sen. Wahome Wamatinga, MP and seconded by Sen. Beth Kalunda Syengo, MP as follows- l. Prayer; 2. Adoption of the Agenda; 3. Confirmation of minutes ofthe 8l't Sitting held on Tuesday, 27th February ,2024. 4. Matters arising; 5. Stokeholder engagement on the Nuts and Oil Crops Bill, 2023 (Senate Bills No.47 of 2023) (Committee Paper 70) 6. Any Other Business; and 7. Date of the Next Meeting and Adjournment. The Confirmation of Minutes of the Eighty First (81't) sitting held on Tuesday,2T'h December, 2023 were confirmed as a true record having been proposed by Sen. Beth Kalunda Syengo, and seconded by Sen. Wahome Wamatinga, MP MIN/SEN/SCN563I2O24- MATTERS ARISING There were no matter arising from the Minutes of the Eighty First (81't) sitting M IN/SEN/S C AI 56412024- STAKEHOLDER ENGAGEMENT ON THE NUTS AND OIL CROPS BILL 2023 SENATE BILLS NO.47 OF 2023 The Committee was informed that the invited stakeholders, that is the (Ministry of Agriculture and Livestock Development, COG, Agriculture and Food Authority, and KALRO) had communicated their unavailability to attend the meeting. Committee Observations The Committee took exception that the invited stakeholders did not honour the Committee's invitation to appear before it. MIN/SEN/SCA/560/2024- PRAYER The Chairperson called the meeting to order at 10.06 a.m. followed by a word of prayer. MIN/SEN/SCN56II2O24- ADOPTION OF THE AGENDA MIN/SEN/SCA/562/2024- CONFIRMATION OF MINUTES

The Committee resolved to re-invite the stakeholders for the public participation engagement on the Nuts and Oil Crops Bill, 2023 (Senate Bills No. 47 of 2023). The Committee considered the Report of the Committee on the Budget Policy Statement and adopted it having been proposed Sen. Beth Kalunda Syengo, MP, and seconded by Sen. David Wafula Wakoli, MP. The meeting adjourned at l0:40 a.m. and the next meeting will be by notice. SEN. JAMES KAMAU MURANGO MP (cHATRPERSON) Committee Resolutions MIN/SEN/SCN56412024- ANY OTHER BUSINESS The Committee noted with concern that its resolutions may not be implemented by the relevant Ministry and County Govemments. The Committee resolved to meet with the Council of Governors Committee on Agriculture to deliberate on the Counties' budget appropriation to the agriculture sector. MIN/SEN/SCA/565/2024- DATE OF NEXT MEETING AND ADJOURNMENT

APPENDIX IV: ADVERTISEMENT PUBLISHED IN THE DAILY NATION AND STANDARD NEWSPAPERS

REPUBLIC OF KENYA THIRTEENTH PARLIAMENT I THIRD SESSION THE SENATE At the sitting of the Senate held on Wednesday, l4'h February, 2024,the Bills listed at the second column below were introduced in the Senate by way of First Reading and thereafter stood committed to the respective Standing Committees indicated at the third column. Pursuant to the provisions of Article ll8 of the Constitution and standing order 145 (5) of the Senate Standing Orders, the Committees now invite interested members of the public to submit any representations that they may have on the Bills by way of written memoranda. The memoranda may be submitted to the Clerk of the Senate, P. O. Box 41842-00100, Nairobi, hand- delivered to the Office of the Clerk of the Senate, Main Parliament Buildings, Nairobi or emailed to clerk.senate@parliament. so.ke and copied to the email addresses of the respective Committee indicated at the fourth column below, to be received on or before Friday, I't March, 2024 at 5.00 p.m J.M. NYEGENYE, CBS, CLERK OF THE SENATE. INVITATION FOR STIBMISSION OF MEMORANDA Biil Committee Referred To Email Address a) The Conflict of Interest Bill (National Assembly Bills No. 12 of 23) Standing Committee Justice, Legal Affairs and Human Rights b) The Gambling Control Bill (I.lational Assembly Bills No. 70 of 2023) Standing Committee on Labour and Social Welfare c) The Wildlife Conservation and Management (Amendment) Bill (Senate Bills No. 46 of 2023) Standing Committee Land, Environment Natural Resources on and d) The Nuts and Oil Crops Development Bill (Senate Bills No. 47 of 2023) Standing Committee on Agriculture, Livestock and Fisheries e) The Constitution of Kenya (Amendment) (No. 2) Bill (Senate Bills No. 52 of 2023) Standing Committee on Justice, Legal Affairs and Human Rights The Bills may be accessed on the Parliament website at http://www.parliament.go.ke/the-senate/house- business/bills. senatej lahrc@parliament. go. ke laboursocialwelfarecomm.senate @parliament.go.ke landenvironcommittee. senate@p arliament.go.ke aericulturelfcommittee. senatef@ parliament.go.ke senatej lahrc@parl iament. go.ke

APPENDIX III: THE NUTS AND OILS AMENDMENT BILL, 2023

, SPECIAL ISSUE Kenyu Gazette Supplement No. 184 (Senate Bills No ' 47 ) REPUBLIC OF KENYA KENYA GAZETTE SU PPLEM ENT SENATE BILLS,2023 CONTENT Bill tbr Introduction into the Senate- The Nuts and Oil Crops Development Bnl' 2023 PRINTED AND PUBLISHED BY THE PAGE l00 r PRlnnTER, NAIROBI NAIROBI, 10th October, 2023

l00l THE NUTS AND OIL CROPS DEVELOPMENT BILL,2023 ARRANGEMENT OF CLAUSES Clause PART I - PRELIMINARY I - Short title. 2 - InterPretation. 3 - Objects. PART II_THE NUTS AND OIL CROPS DEVELOPMENT BOARD 4 - Establishment of the Nuts and Oil Crops Development Board' 5 - Cornposition of the Board. 6 -Qualifications for appointment as a member' 7 -Term of aPPointment. 8 -Vacation of office. 9 -Functiorrs of the Board. I 0 -Powers of the Board. I I -Delegation bY the Board. I 2 -Retnuneration of members of the Board' 13 -Chief Executivc Officer. l4 -Functions of the chief executive officer' I 5 -Removal of the chicf executive officer' l6 -Staff of the Board. I 7 -Protection of members and staff from liabiliry' 18 -Comtnon Seal of the Board. l9 -signing authority. 20 -Meetings of the Board. PART III_ROLE OF COUNTY GOVERNMENTS 2l - Role ofcounfY governrnents. 22 - Enactment ofcounty specific legislation

t002 The Nuts and Oil C|op.s Developrnert Bill,2023 PART IV-REGULATORY PROVISIONS 23 - Regulation of nuts and oils 24 - Registration 25 - Licensing of processors 26 - Publication ofa notice 27 -Revocation of licence 28 -Compliancc noticc 29 -Appeal. PART V-FINANCIAL PROVISIONS 30 -Fnnds of the Board. 3l -Annual estimates. 32 - Accounts and Audit. 33 - Annual report and publication. 34 -Financial year of the Board. PAR'I' VI-MISCELLANEOUS PROVISIONS 35 -lncentives. 36 -Managerlent of iuformation. 37 -Penaltics. 3 8 -Regulations. 39 -Amendment of the schedule PART VII_SAVINGS AND TRANSITION 40 -Rights and obligations 4l -Assets. 42 -Legalproceedings. 43 -Reference to written laws. 44 -Prcvious authorization. 45 -Staff. SCHEDULE-CONDUCT OF MEETINGS OF THE BOARD

The Nuts and Oil Ct'ops Developtnent Bill' 2023 THE NUTS AND OIL CROPS DEVELOPMENT 81LL,,2023 A Bill for AN ACT of Parliament to provide for the production, processing, marketing and distribution-of -n-uts and oil .top. and their products; establish the Nuts and Oil Crops Board; provide a framework for the nuts and oii crops farming development and for connected PurPoses. ENACTED by the Piuliament of Kenya' as fbllows- PART I-PRELIMINARY l. This Act may be cited as the Nuts and Oil Crops Development Act,2023 2. In this Act, unless the context otherwise requires - "Cabinet Secretary" means the Cabinet Secretary responsible fbr matters relating to Agriculture; "county executive committee member" means the county executive committee member responsible for matters l'elating to agriculture in the respective county governments; "Board" means the Nuts and Oil Crops Development Board established under section 4; "board" means the pcrsons appointed under section 5; "chief executive officer" means the chief executive offlcer of the board under Section l3; "nuts and oil crops" includes coconut, cashew nut, maoadamia nut, ground nuts, castor beans, sunflower, oil seed jojoba, shied safflower, sesame, linseed, oil Palm and timbara nut and such other crops as the Cabinct Secretary may by notice in the gazette designate; and "processor" means a person who does the processing of the nuts and oil croPs. 3. The object of this Act is to- (a) promote a globally competitive nuts and oil crops industrY; 1003 Shon rirlc Intcrprclali(nr Objcct

100:l The Nuts and Oil Crops Developnent Bill,2023 (b) increase production and processing of safe and healthy nuts and oil crop trees and products; (c) promote value addition to the nuts and oil crop trees and their products; (d) generate higher income for the nuts and oil crops farmers and traders by introducing better varieties of the nuts and oil crop trees with higher yield; (e) provide continuous and sustained research and extension services for the development of the nuts and oil crops industry; (D facilitatc thc introduction of modern nuts and oil crops farming techniques and general modernization of their iudustry; and (g) implementcffectivc marketing strategies. PART II-THE NUTS AND OIL CROPS DEVELOPMENT BOARD 4. (l) There is established the Nuts and Oil Crops Development Board. (2) The Board shall be a body corporate with perpetual succession and a common seal and shall, in its name, be capable of- (a) suing and being sued; (b) taking, purchasing or otherwise acquiring, holding, charging and disposing of movable or immovable property (c) enter into contracts; (d) borrowing and lending money; and (e) doing or performing all such other things or act as may be necessary in furtherance of its object and functions. (3) The hcadquartcrs of the Board shall be in Kilifi county. 5. (l) The management of the Board shall vest in a board consisting of- (a) a chairperson appointed by the President by notice in the Gazette; Estirblishnrcnt of thc Duls and Oil Crops Dcvelopmcrrt Board. Compositittrr ol lhe Board

The Nuts and Oil Crops Developnent Bill, 2023 (b) the Principal Secretary responsible foragriculture or a repres;native nominated by the Principal SecretarY in writing; (c) the Principal Secretary responsible for trade and investments or a representative nominated by the Principal SecretarY in writing; (d) five persons with ten years' experience in the nuts and oil industry appointed by the cabinet secretary, of whom- (i) three shall be farmers; (ii) one shall be a Processor; and (iii) one shall be a researcher (e) one person nominated by the Council of County Governors; and (0 the chief executive officer who shall be an ex- officio member of the Board. (2) A person is not qualified for appointment if that person - (a) prior to the consideration for appointment, was convicted of a criminal offence and sentenced to a term of imprisonment of not less than six months; (b) is a member of Parliament or county assembly; or (c) is adjudged bankruPt. (3) The Cabinet Secretary shall in making appointments under subsection ( I Xd) have regard to the principle of gender parity, age, regional and ethnic balance and shall, to thc extent por.ibl., .nsJ." an equitable representation from different subsectors of the nuts and oil industry. (4) The cabinet Secretary shall appoint the members under subsection ( I Xd) and (e) by notice in the Gazette ' 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 recognized University in Kenya; and 1005 Qualitlcnlions for appointmerrt irs a metnber.

1006 Tltc Nuts and Oil Crop,s Developncnt Bill, 2023 (c) meets the requirements of leadership and integrity set out in Chapter Six of the Constitution. 7. The persons appointed under section 6(l)(a), (d) and (e) shall serve for a term of three years renewable for one lurther term. 8, (l) A person ceases to be a member of the Board if that person - (a) is absent fiom three consecutive meetings of the Board without the permission of the chairperson; (b) becomes an officer, agent or member of statT 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; (e) is declared bankrupt; (0 is unable to perfbrm the functions of office by reason of mental or Ph1'5icn1 infirmitY; or (g) dies. 9. The Board shall- (a) regulate and promote the development of the nuts and oil crop industry,; (b) make rccommendations to the Cabinct Secretary, and oversee the implementation of strategies, plans and policy relating to the nut and oil crop sector; (c) promote the diversification of nuts and oil crop products and by-products, (d) promote the marketing of nuts and oil crops products and by-products in both local and foreign markets and preserve the competitiveness and reliability of the country as a producer and supplier of nuts and oil crop products by establishing national acceptable standards acceptable in the international markets; Tern) of irppoinrmcnl Vacltion of officc. Functions of rhe Board.

The Nuts and Oit Crops Development Bill,2023 1007 (e) establish linkages with tocal and international research institutions to conduct scientific research and investigations in all areas pertaining to the development of the nuts and oil crop industry; collect, collate and disseminate information on the nut and oil crop industry including the appropriate technology and-practices to ensure maximisation of yields by farmers; regulate the marketing and the exportation of nuts ant oil crop products and by-products to conform-to the quality br food standards recognized in the international market; put in place a framework for the capacity building ind interaction of valious players in the nuts and oil crops industry; develop aud enforce the nuts and oil crop industry standaids and industry code of practice in collaboration with the Kenya Bureau of Standards; and co-ordinate capacity building training for growers, nursery operators, processors, cooperative societies and other associations in the nuts and oil crops value chain. put in place measures for provision of assistance to iarmeri which may include farm inputs and affordable credit facilities. (0 (e) (h) (i) (i) (k) 10. (l) The Board shall have all the powers necessary fbr the proper performance of its functions under this Act and in particular, but 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 responsible for matters relating to finance, invest any of the Board's funds not immediately required Powcrs of the Board.

1008 The Nuts and Oil Crops Development Bill, 2023 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 Boald shall be made. (2) The Board may, if it considers it necessaty become a member of, or associate with a body or corpot'ation designed to assist or promote the nuts and oil crops industry. I l. The Board may, by resolution, delegate to any committee of the Board or to any member, officer, employee or agcnt of the Boald, the exercise of any of the powers or the perlbrmance of any of the iunctions of the Boald under this Act or under any other written law. 12. 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. 13. (l) There shall be a chief executive otficer 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 tbr appointment as the chief executive officer if that person - (a) is a citizen ofKenya; (b) holds a degree in law, agriculture or finance, from a university recognized in KenYa; (c) has at least five years' experience in public administlation or 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 tive years and is eligible for re- appointment fbr one lurther term. 14, The chief executive officer shall be the secretary to the Board and shall, subject to the direction of the Board- (a) be responsible fbr the day to day managemenl of the affairs of the Board: Delcgarion by rhe Board Rernuncr lion lhe Bo;rrd Chicf officer. Functions of rhe chief execulive ofncer.

The Nuts and Oil Crops DeveloP,nent Bill, 2023 (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' (f) perform such other duties as may be assigned by the Board. 15. The chief executive officer shall cease to hold otTice if that person- (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; (c) is unable to perform the functions of office by reason of mental or physical infirmity; or (D dies. 16. The Board may employ such officers, agents and statT 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' 17. Liability shall not attach to the Board or to any of its members, officers, agents or staff for loss or damage incurred as a result of an act or omission done in good taith and without negligence in the performance ol exercise or the intended performance or exercise of any duty or power imposed by or conferred under this Act. 18. The affixing of the common seal of the Board shall be authenticated by thi signature of the chairperson and the chief executive officer or a person designated by the Board' 1009 Removillof chicf cxeculive officcr. Stlff of lhe Board. Protection of membcrs tnd sraff from liability. Common seal of thc Board.

l0 t0 The Nuts and Oil Ct'ops Developnent Bill, 2023 19. 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. 20. (l) 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 nrectings and to participatc in its dcliberations, but such person shall not be entitled to vote on any of the Board's dccisions. PART III_ROI,E OF COUNTY GOVERNMENTS 21. A county government shall- (a) implement the National Government policy relating to the nuts and oil croP sector; (b) maintain an up to datc register of nuts and oil crop growers, nursery operators, processors, cooperatives and othel associations in that county; (c) licence nuts and oil processors; (d) implement national and county legislation on nuts and oil crop industry code of practice, policies and guidelines on corporate governance in the growers' institutions; (e) facilitate the production of nuts and oil crop in the respective county by implementing and expanding the planting and replanting program of nuts and oil crops in strategic areas identified as having the most potential and the rehabilitation and fertilization of existing nuts and oil croPs; (0 offcr extension services on nuts and oil crop production and primary processing; Signing authorily Mcclings of Boards. Role ol' counly govemnrcnts (e) encourage and promote the organization of nuts and oil crop farmers' co-operatives, associations, and organizations and provide them with credit and financing schemcs;

The Nuts and Oil Crops Development Bill, 2023 l0l I (h) (i) 0) (m) establish storage facilities and aggregation centres' 22. (1) A county that produces, Processes, distributes or markets nuts and oil crop or products may enact county specific legislation prescribing - (a) the criteria for registl'ation and appeal mechanism; (b) intbrmation required to be submitted by an applicant for registrationl (c) the criteria for the issuance of licenses by an applicant within the respective county; (d) the conditions for the issuance ot' renewal of a licence under this Act; (e) the grounds for the rejection of an application or cancellation of a licence issued under this Act; (D such othet' provisions as the county government shall consider necessary. (2) Where county lcgislation has not been enacted, the provisions of this Act shall apply. (k) (l) provide training, extension service progt'ams and disseminate information to nuts and oil crop farmers, farm workers and processors relative to production technology, market systems ' farm workers, entrepreneurial and other technical skills and values, attltude formation and socio-economic development strategies; collaborate with relevant institutions so as to promote access to credit and other financial services; formulate and adopt a general program of development geared towards increased farm produciivity, through planting or replanting of iuitable seedling varieties, rehabilitation and fertilization of the nuts and oil crop' integrated nuts- based tarming systems and product processing; inspect value addition industries located within their respective counties; 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; and Enactmcnt of counlY spccific leSislation.

l0l 2 The Nuts und Oil Ct ops Developnent 9ill, 2023 PART IV-REGULATORY PROVISIONS 23. ( I ) A county govemment shall regulate the production and processing of nuts and oil crops with a view LU_ (a) promotingproductivity; (b) promoting access to markets; (c) facilitating plovision of infrastructure including farm inputs; (d) providing post-harvestservicesi (e) providing extension servicesi (t) providing incentives to farmers; or (g) providing credit facilities. (2) The county govemment shall maintain the necessary statistical intbrmation with respect to nuts and oil crops to enable proper planning. 24. (l) A person or entity shall not carry out the business of a nuts and oil crop grower, nursery operator, cooperative society or association unless such person is registered by the respective county government in which the business is to be undertaken. (2) Notwithstanding subsection (l), a grower who is a rcgistercd mcmber of a nuts and oil cooperative society or association which is registeled by a county government, shall be exempted from registration by that county government. (3) Subsection (2) shall apply to a grower 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 sh all- a) submit a register of its members to the respective county government at the beginning of each calendar year; and b) fumish the county govemment with information on any change of membership within thirty (30) days of a change of membership. (5) A county govemment shall not charge any fees for the registration of an applicant under this section. RcSulation of nuts and oil croPs Rcgislration

The Nuts and Oil Ctops Development Bill' 2023 l0l3 (6) Each county government shall keep and maintain a register under subsection ( I ). (7) A register under subsection (6), shall include- a) the name of the nuts and oil crop grower' nursery operator, cooperative society or the association; b) the location, size and parcel number of the land on which the croP is grown; and c) such other information as the Board may prescribe' (8) Each county government shall submit to the Board a copy of the register under subsection (6) ' 25. (l) A person shall not engage in the processing of nuts and oii crops and their products unless such person has applied for, and obtained, a licence in accordance with this Act. (2) A person who intends to process- nuts and oil crop p.oducit shali submit an application in.the form prescribed in iounty legislation to the county executive committee member together with - (a) such documents and information as the county executive committee member may prescribe; and (b) the prescribed fees. (3) A county executive committee member shall .onsidet an application within fourteen days of receipt of the application and maY- (a) grant a licence unconditionally; (b) grant a liccnce subjcct to satisfying such conditions ai the county executive committee member may impose; or (c) with sufficient cause, refuse to issue or renew thc licence. (4) A decision made under subsection (3) shall be communicated to the applicant by the respective county executive committee member, in writing, within seven days from the date of the decision' (5) Where the county executive committee member refuses to grant a licence, the county executive commlttee Licensing of procassors.

I0t.+ The Nut.:: anrl Oil Crops Dcvelopnent Bill,2023 member shall, in its notification under subsection (3), specify the reasons for the refusal. 26. (l) A county executive committee member shall, at least thirty days before granting a licence under this Act, publish a notice of the proposed grant by notice in the Gazette and in such other manner as the county executive committee member may determine. (2) The county executive committee member shall, in publishing the notice under subsection ( I ) - (a) specify the name or other particulars of the person or class of persons to whom the licence is to be granted; (b) state the purpose and the date for which the liccnce is proposed to be issued; and (c) invite objections to the proposed grant of licence and direct that such objections be lodged with the county executive committee member within fourteen days from the date of the notice. (3) The county executive committee member shall consider any objection submitted to him under subsection (5) and may grant the licence applied tbr subject to such conditions as the county executive committee member shall consider appropriate to impose. (4) A licence issued under this Act shall not be transferable. (5) A person who contravenes the provisions of section 25(l) commits an ofTence and is liable, on conviction, to a tine not exceeding one million shillings or to imprisonment for a term not exceeding two years or both. 27. (l) The county executive committee member may revoke a licence under this Act if the licensee- (a) fails to meet any condition imposed by this Act or county legislation; or (b) surrenders the licence together with a notice setting out a rcquest that the licence be revoked. (2) The county executive committee member shall not revoke the licence under subsection ( I Xa) unless the committee executive member- Publicarion of a nolice. Revocation of licence

The Nuts and Oil Crops Developnettt Bill' 2023 l0r5 (a) issues to the person, a notice of at least fourteen days of the intention to revoke the licence; (b) issues to that person a compliance notice in the prescribed form; and (c) grants the person, an opportunity to be heard on the revocation. 28. ( 1) A compliance notice issued under section 27(2)(b) 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 rcquest 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. (3). (l) Where a person who receives a compliance notice under section 27 (2) (b) fails to comply with such notice, the county executive committee member shall - (a) revoke the licence of that person; (b) notify the person in writing of- (i) the revocation and the reasons thereof; and (ii) indicate the date of revocation ' (4) For purposes of this Act, a cancellation of licence takes et'fbct on the date on which the licence is cancelled by the county executive committee member. 29. An applicant who is aggrieved by the decision of the county executive committee member not to issue a licence underj this Act may appeal to the High Court against the decision within fourteen days of receipt of the decision ' PART V-FINANCIAL PROVISIONS 30. The funds ofthe Board shall consist of- (a) monies appropriated by Parliament for the purposes of the Board; Compliancc notlcc Appeul Funds of lhe Board

l0 t6 The N ts and Oil Ct'op.s Development Bill,2023 (b) such monies or asscts as Inay accrue to or vest in the Board in the coursc of the exercise of its powers or the performance of it functions under this Act ot' any other written law; (c) monies rcccived in rcspect of levies and fees; and (d) donations, grants, loans or gifts made to the Board and approved by the Cabinet Secretary for finance. 31. ( 1) At least three months before the comnrencement of each financial year, the Board shall cause to be prepared estimates of revenue and expenditute of the Board for that year. (2) The annual estimates shall make provision for all estimated expenditure of the Board fbr the financial year concemed. (3) The annual estimates prepared by the Board under' subsection (2) shall be submitted to the Cabinet Secretary fbr tabling in the National Assembly. 32. (l) 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- Gcneral - (a) a balancc sheet showing in detail the assets and liabilities of the Board; and (b) sLrch other statements of accounts as the Cabinet Secretary may approve (2) The accounts of the Boald 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 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 rnay cons.ider necessary for the performance of his duties. 33. (l) The Board shall, within a period of three months after the cnd of cach financial year or within such longer Annurl cstimatcs Accounls and audit. r.\o.3.1 ol 2015 Annual rcpofl and publication.

The Nuts and Oil Crops Developtnent Bill, 2023 l0 l7 period as the Cabinet Secretary may approve, submit to the babinet Secrctary a rePoft ol the operations of. the Board Juring suctr yeariand the annual balance sheet and such other .ot.ri"nt. o'f account as the Cabinet Secretaly shall require ' together with the Auditor-Ceneral's report' (2) The Board shall, if the Cabinet Secretary so requires' oubliih the reDort, balance sheet and statements submitted to tim under subsection (l) 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 ,tut"*"ni, submitted under subsection (l), within a period of iburteen days of the receipt of the reports and.statements or, if a House of P*liu*"nt is not sitting, within tburteen days of the commencement of its next sitting. 34. The financial year of the Board shall be the period of twelve months ending on the thirtieth of June in each year' PART VI_MISCELLANEOUS PROVISIONS 35. The Cabinet Secretary responsible for finance may from time to time determine by notice in the gazetle the tax incentives applicable to the nuts and oil crops industry in order to promote the development of the cotton industry 36. (l) The Board shall can'y out market research and analysis and disseminate information on its findings to all stakeholders. (2) The Board shall, subject to subsection (3), facilitate u.."tt to information held by it in accordance with Article 35 of thc Constitution. (3) Subject to Article 35 of the Constitution, the Board may decline io give information to a person where - (a) the request is unreasonable in the circumstances; (b) the information requested is at a deliberative stage by thc Board; (c) the information requested may compromise the working of board; or (d) the person fails to satisfy any confidentiality requirements bY the Board. Financial year of lhe Boirrd. Incentivcs Managelnenl of informatiotl.

r0l 8 The Nuts and Oil Crops Developnent Bill,2023 (4) The right of access to information under Article 35 of the Constitution is limited to the nature and extent specified under this section. (5) Every member and employee of the Board shall sign a conl'identiality agreement. 37 . (l) A person who cornmits an otl'ence under this Act for which no penalty is provided is liable, on conviction, to a tlne of not less than twenty thousand shillings or to imprisonment for a term not exceeding six months, or to both. (2) Where an offence under this Act is committed by a partnership. cornpany. association or co-operative society, every person who at the time when the offence was com mitted - (a) was a director, partner or officer; (b) had knowledge or should have had knowledge of the commission of the offence; and (c) did not exercise due diligence to ensure compliance with this Act, commits an offence and is, subject to subsection (3), liable for the offence as if they had committed the offence. (3) A person shall not be liable for an offence under subsection (2) where they prove that the act or omission constituting the offence took place without their knowledge, consent or connivance and that they exercised diligence to prevent the commission of the offence as they ought to have exercised having regard to the nature of their functions as director, partner or officcr concerned as aforesaid and to all the circumstances. 38. ( I ) The Cabinet Secretary may, in consultation with the Board and the Council of County Governors, make regulations generally for the effective carrying out the provisions of this Act. (2) Without prejudice to the gcnerality of subsection (l), the regulations may provide for - (a) conditions for registration I (b) forms to be used in the application for registration, and related activities ; Penallies Re8ulations

The Nuts and Oil Crops Development Bill, 2023 (c) the process of application for registration and related activities; and (d) the regulation of contracts between growers' processors and other players in the nut industry' 39. The First Schedule to the Crops Act No' 16 of 2013 is amended by deleting the following items - (a)Under Part I- Sunflower. . . . . . . . . . . . . . . ... . ' . ".Helianthus annuus (b)Under Part II- (i) Sesame.... ....".....'...Sesamum Indicum L' (ii) Safflower.'.............Cartthamus tincorius L' (iii) Ground nut..................Arachis hypogaea L (c)Under Part III- (i) Coconut........ Cocos nucifela (ii) Cashew nut........... ' Anacardium occidentale (iii) Castor beans.........................Ricinus communis (iv) Oil Seed or Rapeseed....."......'Brassica napus var. oleifera L (v) Jojoba......'..........'....'.Simmondsia Chinensis (vi) Linseed... ........-.Linum usitatissium L. PART YII_SAVINGS AND TRANSITION 40. All rights, obligations and contracts which, immediately before the coming into operation of this Act, were vested in or imposed on the Agriculture and Food Authority with respect to the nuts and oil sector shall by virtue of this section, be deemed to be the rights, obligations and contracts of the Board as the case may be. 41. All funds, assets, and other Property' moveable and immovable which were immediately before the appointed day vested in Agriculture and Food Authority for the carrying out of functionJrelating to nuts and oil, shall vest in the Board' 42. All actions, suits or legal proceedings pending by or against the Agriculture and Food Authority in relation to the l0l9 Amendnlcnls Rights and obligalions Asscts Legal procccdings

1020 The Nuts and Oil Crops Developnenl Bill,2023 nuts and oil sectol' shall be carried on or prosecuted by or against the Board, and no action, suit or legal proceedings shall in any manner abate or be prejudicially affected by the enactment of this Act. 43. Any ret'erence to the Agriculture and Food Authority in any written law or in any contract, document or instrument of whatever nature, in relation to nuts and oil, shall. be read and construed as a reference to the Board. 44. All directions, olders and authorizations given, or licenses or permits issued, or registrations made by lhe Agriculture and Food Authority in relation to nuts and oil, and subsisting or valid immediately before enactment of this Act, shall be deemed to have been given, issued or made by the Authority as the case may be, under this Act. 45. Any person who, at the commencement of this Act, is a member of staff of the Agriculture and Food Authority dealing with the nuts and oil sector shall, upon enactment of this Act, become a member of staff of the Board. Rcference to wriltcn lirw I)rcvious authorization Sr.rff

t02t SCHEDULE (s'20) PROVISIONS RELATING TO THE CONDUCT OF BUSINESS AND AFFAIRS OF THE BOARD 1. (a) The Board shall have at least ten meetings in every financial year and not more than two months shall elapie between ihe date of one meeting and the date of the next meeting. (b) 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. (c) 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 n-reeting for that PurPose. (d) 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. (e) 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 is 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. 4. Minutes of all meetings shall be kept and entered in records kept for that PurPose. 5( I ) If a person is present at a meeting of the Board or r..rp""iiu. committec ai 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 afier the commencement of the meeting. declare such intet'est. Mccting\ Quorum Voting Irinutcs Disclosure of The Nuts and Oil Ct'ops Development Bill' 2023

t022 Thc Nlts and Oil Crops Developtne Bill, 2023 (2) The person making the disclosure of interest under subsection ( I ) 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 (l) commits an otl'ence and shall upon conviction be 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.

The Nuts and Oil Crops Developnent Bill, 2023 1023 MEMORANDUM OF OBJECTS AND REASONS TheprincipalobjectofthisBiltistoestablishtheNutsandoilCrops Developnient Soara wittt the aim of saving the nuts and oil crops industry by rera*ping the policy and institutional tiamework within which the iriau.,ry op"iot... The nuts and oil crops industry is a significant agricultural industrY in KenYa. There is therefore need for a strong and robust policy and institutional foundation to support and guide the multitude of activities, op..utions, and interactions *ithin the industry so that the growth of the inOustry results in a strengthened agricultural economy for the country' Regulatory challenges, national and international economic realities, and scie.-ntific tlliubilityit. some of the pressing concems that need to be addressed by the institution responsible for the nuts and oil crops industry. The Bill proPoses to revamp the nuts and oil crops sector in order to make it u profitibt., sustainabie and development-oriented activity. Ir proposes to provide an avenue for appreciating the medicinal, aesthetic, ioriistl" and artistic value of varioui nuts and oil crops by encouraging value addition in the processing of nuts and its products. The Bill therefore establishes rhe Nuts ind Oil Crops Development Board.It further provides for research and development to cultivate a culture of scientific excellence and professionalism in nuts and oil crops farming and industrial development. Part I (clauses l-3) contains preliminary matters' 1'his part bontains the short title, interpretation of terms' and the object of the Act. PartII(clauseszl-20)providesfortheestablishment,functionsand powers of the Nuts and oil irops Development Board. It further provides ior the composition and qualifiCations for appointment of the members of the Nuts oni Oit Crops Development Board. In addition, it provides for the office of the chief ixecutive officer of the Board atrd the secretariat. This part also provides for the establishment of Committees of the Board as well as tenure of office of Board members. It further provides for remuneration of the members as well as the meetings of the Board and other administrative issues revolving around the Board Clauses 2l-22 contain provisions related to the role of county governments in regulating the nuts and oil industry. It allows counties to Enuct .ornty ,p".ii. legi-slation setting out the criteria for registration of the nuts and oil industry stakeholders.

t024 The Nuts ancl Oil Crops Developtnent Bill,2023 Part IV (Clauses 2}-28) sets out the regulatory provisions. The Bill requires the nuts and oil crop growers, nursel'y operators, association and societies to register with the county government. Part V (clauses 29-33) sets out the financial provisions of the Board. This part provides for preparation of annual estimates of income and expenditure of the Board. It further provides for the period of the financial year of the Board and thc preparation and auditing of its accounts. Part VI (Miscellaneous provisions Clauses 3'l-38) This part provides for tax incentives, management of information by the Board and penalties for non-conformity with the provisions of this Act. Part VII (clauses 4G.45) provides for Savings and Transition clauses. The Schedule contains provisions relating to meetings of the Board and the conduct of such meelings. Statement on the delegation of legislative powers and limitation of fundamental rights and freedoms This Bill does not delegate any legislative powers nor does it limit tundamental rights and freedoms. Statement on how the Bill concerns county governments Agriculture is a devolved function under paragraph I of part 2 of the Fourth Schedule to thc Constitution. By facilitating the development of nuts and oil crops industry in the country, the Bill ensures that nuts and oil crops farmers have opportunities to enhance farming and value addition to nuts and oil crops products. This in turn facilitates the growth and development of the economies of the counties that produce nuts and oil crops. The Bill therefore concerns county governments in terms of Articles i 10(1) (a) of the Constitution. Statement that the Bill is not a money Bill, within the meaning of Article 114 of the Constitution This Bill is not a money Bill within the nreaning of Article I l4 of the Constitution. Dated the l9th September,2023. HAMIDA KIBWANA, Senalor.

APPENDIX V: MATRIX OF THE SUBMISSIONS RECEIVED BY THE COMMITTEE ON EACH CLAUSE OF THE BILL AND ON GENERAL MATTERS RELATING TO THE BILL

I'HE SI'NA'I'E },IATRTX THE NU'I'S AND OII, (]ROPS DE\/ELOPMEN't BILL,2023 CLAUSE STAKEHOLDE R PROPOSAL REASoNS RESOLT]-tION I Short title Ministry Agriculture ol Ar:rend and insert "Development" before the word " Board" To align rvith thc title of the Bill 2 Dcfin itions M inistry Agriculture of Nuts and Oil crops- Amend by deleting the definition and substituting thcrcof with 'nuts and oil crops means any of the crops listed under thc sccorrd schedule and includes such other crops as the CS on thc advice of thc board rnay dcclare to be a scheduled crop by notice in thc gazettc'. Since the crops are many, it rnay not be possible to capture all of them in a definition and therefore the need to introduce the second schcdulc whcre all of them will be listed. Amendby insclting a new interpretation. 'Dcaler includcs a pcrson cngagcd in either collecting. transporting, storing, distributing, or buying and selling nuts and oil crops produce, Thcsc valuc chain actors play vital role in development of the nuts and oil crops sub-scctor. 1

products or by- products and includes marketing agents, proccssors, cxporters, and importers'. 2 Dcfl n itions Law Kenya Society of This definitiorr should be reworked to ensure that the word that is being defined is not used in its interpretation. This will ensure that the definition is concise especially because section 2 I (c) authorizcs the county govenlmetlts to Iicencc nut and oil processors. The Bill should also define the tcrm "processing" sincc section 25 (l) statcs that proccssing of nuts and oil crops shall not be done without a licence. Section 26(5) further creates an offlencc whcrc proccssing is done without a licence and a hcfty finc of KES onc million or imprisonment fbr a term not exceeding two years or both. The rnagnitude of this pcnalty wan'ants definition of the word "processing". The tenl "Processor" has been defincd to rneau "a pcrson who does the processing of nuts and oil crops" Laruu farmcrs Inclucle cotton ale nuts sccd sincc thev 2 Larltr farrt-tcrs

3 Objects of the Bill Ministry Agriculture ot' Arncnd by dcleting thc word 'industry' and substituting it with the word 'subsector'. The nuts and oil crops comprise several industries. Arncnd by substituting thc word 'tree' with'producc'. We proccss the producc. Not all nuts and oil crops are trees. Anrend by substituting the word 'bettcr' u,ith'irn roved' Technical improved better. language varictics used is and not Arnendby inserting a new object to read 'Rcgulate the Nuts and Oil Crops Sub Sector'. To ensure harmony and a level playing ground in the sub-sector. 3 (a) Objects of the Bill Naturc Kenya Amend Clause 3 (a) to include the tenn "sustainable" to promote a more environmentally conscious approach, hence to read: " 3 (a) promote a globally competitive and sustainable nuts and oil crops indu.slr.v" 4 (3) Headquartcrs Ministry Agriculture of' Arnend to substitute the term 'Kilifi' with'Nairobi'. Thc production of nuts and oil crops spread across thc coutltry and Nairobi is the most cctttral. Mpeketoni f'anners Hindi/ Mokoyc fanrrers Headquarters to be located in Lamu 5 (t) Composition Board tlic Ministry of Agriculture Arncnd inserting of. by dclcting thc clausc and 'The Board shaIl consist Mpekctoni fanners Rcprcscntativcs of thc farurcrs shtluld be appointed bY To clcct persons who involved in nuts farming alrc 3 To align with thc marginal notcs.

farmcrsllc rcscntatlvcs Mpekctoni farrners Famrers should elcct the chairperson s(d) Mpeketoni farmers Reduce the requiremcnt of l0 years' experience to five. To accommodate youth who rnight lack the lorrg experience but are ualified s(d) (i) Hindi/ Mokoye farmers Specity that the farmers to bc rlonlinated are nut and oil farmers. IIindi/ Mokoye farmcrs Increase the number of farmers representative to 4 5(3) Hindi/ Mokoye f'arrners Provide tbr youth and PWD 5(3) Law Society of Kcnya. We propose that the PS Treasury bc included in the Membership of thc Board because the body created would have an impact on the exchequer. The costs of running the Board would have to be approved by the National Trcasu The composition of the Board does not include reprcsentation frorn the PS Treasury. 5 Naturc Kenya Revise the compositiou of the boald to includc rcprcscntation fiom the environrrrent and climatc change scctor to advocate for cnvironrnental interests. 4 We propose amendment to add clause 5 (l) (g) and (h) to read: "Clause 5 (1) (d, the Principal Secretary re.sponsiblc Jbr environnrent and climate change or a representative nominated by the Principal Secretary in writing. (h), d representative of a national c:ivil society

\ e) privatc scctor. Thcrc arc four licensecl and opcrational Macadamia processors in the County. Licensing of rnacadamia proccssors is currently done by AFA. This shoulcl be devolved to the Clounty Govemnrent fbr ease of enforcement of the Macadamia regulations Provision of extension services to the lamrers to improve on the crop agronomic practices. The private sector is bcing encouraged to sct-up and rcgister uurseries to enhance ccrtificd sccdlings production. However, lice nsing of Supporting farmers to acccss certificd 0 s) seedlings to lamrers 26

a advcrscly lowcrs production and llut quality. l) Iligh cost of famr inputs thus making thern unaffordable to majority of the fanners. g) Inadcquatc supply of certified seedlings as a result of the few registered nurseries, leading to high seedling prices. Interventions to promote the developnrent of the Macadamia sub-sector. a) Establishment of aggregation tacilities at the ongoing County Agricultural Industrial Park, at Machanga b) Encouragc contract famring c) Continuous r.nobilization of farmers to join Macadamia Farmers Cooperativc. d) Promotion and support to proccssirrg and value addition by the 1C

is irnportant that prcdictable and strict timelines be put in placc for disputc resolut ions. Lefi to individuals, rhe disputcs shall fbrever drag to the disadvantage of the citizcns and other rnarket la crs Ernbu County Covernment Chief Officer- Cooperative Dcve lopr-nent Challe nges to macadamia production a) Low and fluctuating producer prices altd lack of organized marketing. This has led to exploitation by brokers who are not regulated. b) Harvesting of immature nuts wlren prices are very good to counter on-farm theft incidenccs. c) Little or no value addition at farm gatc. d) Effects of climate change (unpredictablc weather conditions) which affccts flou,ering pattern and gcncral pcrfonrancc of the tree. c) Pcsts and discascs damagc which 24

have a rccoursc whctrevcr thc issuing authority at the County fails to act within the stipulated tinrelines. This could be going to thc Board directly. Leaving the recourse to only the High Court which might take ages to determine thc mattcr at thc dctrirnent of a farmer is unsustainable. 5. The intended legislation should be clcarer on the application of licences directly to the Board in the event that a county where a tanner hails fronr does not have a specific legislation on nuts and oil crops. This should relate to the body to whorn Licence application is to be r-nade to, the timelines. 6. The disputc rcsolution mechanism needs to be enhanced in line with the Overriding Objective Piinciples of fast rcsolution. The prinrary legislation and the rules howcvcr havc ignored a vital constituent of tirnelines within u4rich the dispute is to bc addrcssed. Given thc naturc ol- thc sector and the products involved, it 1)

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h) Provision of idle land by collltty governnlent i) I)rice control and trainir.rg b c0ull overnlllent j) Qualification re uirements of a dc rcc k) Introducc Board at thc c o r,ul level Mpcke toni larrrcrs l. Regulate priccs 2. Slip Board to be responsible for s ccific cro s 3. Provide for provision of quality seeds and markets 4. Includc sced and oil farrncrs 5. Production is low because of lack of quality seeds, cxtension services. Genelal Clornr-nents FIindi/ farmers Mukoye l. There are several issues that affect production. This include- a) Land ownership and titles- ruost farmers are not registered as land owuers and as such they are hcsitant to engage in long term investlnent in farming b) Lack of security- constant clash between thc patrolist and farmers affect production. c) Lack of clear demarcation bctwccn forest and farm land. Wild fires also spread to the farms dcstroying crops and larmers are not contpensated for ir. 20

Nuts and Oil Crops Developr.nent Blll, 2023 is adcquatcly addrcsscd by thc Crops Act, 2013, AFA Act, 2013, and thc Crops (Nuts and Oil Crops) Regulations, 2020. The Ministry is contcnt with the existing legislative and institutional lramcwork. 3. The position of the Ministry that the Nuts and Oil Crops Developrnent Bill, 2023 should not be progressed. Ge n eral Commcnts Kwale larmers a) Regulate pricing tr) Provide for credit facilities fbr nut and oil crop fanners c) Protection of growers to ensure local markcts. local ready Influx of foreign processed nuts and oil products. d) Replace function of county govcmrncnts to the Board. The County govcmlnents are incffective. c) Removc thc penalty for cutting of oil crops. It is pcrceivcd that whcn the crops are not viable it does not makc scnsc to kccp growirrg thern. l) Incorporatcgroundnuts Value addition estabIishnrerrt &. of processing plants 19

Arncnd by inserting a sub-clausc 'lf a person clocs not in(end to beconrc a membcr of staff of thc Board, thc person shall. within a period of 30 days lrorn the appointcd day givc notice in writing to the Board.' Fairncss in staff who ntight opt not to join the Nuts and Oil Crops Devclopmcnt Board. Arnend by inserting a sub-clause 'Any other rnember of staff within tlre Agriculture and Food Authority may upon consideration and appointnrent by thc Board becorne a mcmbcr of staff of thc Board after the commencement of this Act.' Fairness in staff who might want to opt in and join the Nuts and Oil Crops Developurcnt Board. Amend to insert a sub-clause 'Thc staff pensions fund of Kenya Coconut Development Authority Pension Scherne shall on the appointed day vest in the Board'. To rnanage the stafT pension funds. (lcncral Comments Ministry Agriculture of l. The establishmcnt of tlre proposed Nuts and Oil Crops Developrnent Board to regulate Nuts and Oil Crops shall negate the policy direction that informed the rnerger. This will erode the bcncfits cnvisagcd in thc rnerger including reducing overlaps in lnandates and injecting cost-cffect iveness in thc managcmcnt of rcgulatory boards. 2. The prrrposc of thc proposed 18

t) Rutcs for cnsuring food safcty including handling, transportation, processing, and nrarket standards of nuts and oil cl'ops produce and products; g) Periods for which licenses and rcgistration certificatcs shall be issued; h) Rcgulation ofstandald industry agreenrents; i) Regulation on courpetitive pricing and market access; and j) Regulation on fees and levies. 38 Regulations Council of County Governors. Amend by introducing a new sub- clause 3 8(2)(e) imrnediately after 38(2Xd) to read as follows: 38(2Xe). Establishment of the County Crops Dispute Resolution Comrnittee No.justifi cation provided PART VI- MISCELLANEOU S PROVISIONS Ministry Agriculturc ol Introduce a new clause to give the CS powcrs to imposc a levy on thc nuts and oil crops produce and products. It is important to have the levy for the sustcnance, development, provision, and gencral benefit of thc nuts and oil crops sub- sector. 44 Previous authorization Ministry Agriculture of Arncnd by delcting thc word 'Authority' and substituting it with thc word 'Board'. To providc consistency. clarity and 45 Sra,f Ministry of Agriculture Anrcnd by inserting the following words after the words staff of the board; 'on thc sarne ol'bctter terrns'. Providc adcquatc safcguards for the stalf welfare. 77

(2) A party aggricved by thc dccision of the Dispute Resolution Conrmittcc my appcal to the lligh Court rvithin fburtccn days of receipt of the dccision. 35 Ministry of Agriculture Amend by deleting the words'cotton industry'and rcplacing thcrn with the words 'sub-sector'. The use of the cotton industry is not relevant to the nuts and oil cro s sub-sector Mpeketoni fan.ncrs Providc lor a stabilization fund To support farmer Mpeketoni farmers Provide fol incentives To assist farr-ners 37 Pcnaltrcs Ministry of Agriculture Arncnd to provide for a finc not exceeding {rve hundred thousand shillings or imprisonmcnt for a pcriod nol exceedin otlc ear or both Thc law should providc lor a maxir.num llne and penalty. The Kcs. 20,000 providcd for is low and ma not deter mal ractlces 38 Regu lations Ministry Agriculture ol Arnendto provide for the following regulations. a) Procedure for licensing of marketing agents, transpolters, processors, exporters, and importers; b) To provide for fonns fees to be paid for anything to be done under this Act; c) Mechanisms for conflict rcsolution; d) To providc for the submission of returns and reports by the holdcrs of licenses and pcrmits under this Act; e) Stanclards and the manncr of grading olthe nuts and oil crops To ensure adequate provisions for regulations. 1b

Exccutivc Committcc Mcmbcl in application for licensing Mpckctoni Farrrrers Liccnsing should bc donc by AFA or the Board. County ineffective govcmment ls Mpckctoni Farmers Arncnd to protcct cottagc industrics To protcct processors. srnall scalc 2s (2) Ministry of Agriculture Arnend the sub-clause by deleting county legislation and replacing it with the regulations undcr this Act. Licensing will be done under this act and not through county legislation. 25 Licensing processors of Amend clausc 25 marketing agents, importers. to include exporters, thc and Thcy are important actors in the value chain and need to be regulated. 26,27,28.29 Ministry of Agriculture Arnend by deleting thc word 'county executive committee member' wherever it appears and replacing it with the words 'The Boald'. Licensing of the players should be done by the board bccause it is intended tbr the internatioual markets antl processors utilize imported raw material. Council of County Govemors. Anrend to read as lollows 29. (l) An applicant who is aggrieved by the decision of thc cotlnty executive comrnittcc nrember Irot to issue a licence r.rndcr this Act may appeal to the County Crops Dispute Resolution Comrnittcc against the decision within tburteen days of reccipt of thc decisiorr. To provide of Altemative means of Dispute Resolution through the fonnation of county dispute resolntion committces before a party can approach the High Court. 15 Ministry of Agriculture. 29 Appeals

to thc global cffbrts against thc triple planetary crisis. 'fhe need for climatc smart production cannot be overemphasized. 24 Rcgistration Law Kenya Socicty of We propose that a nuts and oil crop grower be defined to ensure that therc is certainty as to who lalls undcr that classification for the purpose of dctcrrnining who qualifics for exemptions under the same section. Thc scction makcs rcfcrcncc to a nuts and oil crop grower yet the cntirc tlocumcnt does not dcfinc who a nuts and oil crop grower. 24. Registration Amend to regulate the crop and not the farmers. llindi/ Mokoyc fanners What happens if a farrncr does not register? Registration is a burden to farmers. 25 Licensing processors of Ministry of Agriculture Arnend the clause by deleting CECM wherc it appears and replacing it with Board. Licensing of processors should be done by the board because it is intended for the extenral market and processors utilize imported raw material. 25 Nature Kenya "25 (2) (c), Environntental Impact A.ssessment or Envirorunenl0l Lr:nd Social Impact A.;sessntent license as lter lhe EMCA reeulations". Require Environmental I nrpact Assessrnent or Environmental and Social Impact Assessnrent approvals for proccssors to ensure compliarrcc with environmental regulatior-rs as per Environmcnt Managcmcnt and Coordination Act (EMCA) regulations among docruncnts submitted to the County L4 Mpekctoni t'arnrers

govcmlnents 22 Enactlnent of county Specihc Iegislation. Council of County Govemors. Arnend clause follows: 22(l)(e) lo read as 22( I ) (c) tlrc grounds for thc rcjection ol an application or cancellation of a liccncc issucd undcr this Act and mechanisms for Appeal; No justifi cation provided 22 Law Kenya Socictv ol We proposc that since thc mother Bill has already been developed, counties should only creatc rcgulations relating to production, plr.rcessing. distribution and marketing of nuts and oil crops that align with the current Bill. This will also rnininrize contfadictions like Section 22 "1" a" referring to the counties developing Iegislation on the cliteria for registration and appeal which have later been addressed in Part IV of the Bill on regulatory provisions. This scction providcs for developurent of county specific legislation where a county engages in production, processing, distribution and nrarketing of nuts and oil crops. 23 Rcgulation of nuts and oil Crops. Ministry of Agriculture De lctc thc cntirc clausc Thc provisions are not rcgulatory and areprovided for under clause 21. 23 Nattrre Kenya Tlrerefore, amend to add 23 (l) to add thc above view, to read: "23 (l) (lt) Enhanc'irtg conservatiott, proteclion and tanagetnent o/ all eco logica I l.v .s e ns i ti ve a reos E,xpand the regulatory fi'amcwork to cncompass climate change adaptation, halting of biodivcrsity loss, and pollution prevention in addition to tlte othcr Iistcd cconomic objectivcs as this will enhance contribution t.,

providc a framework for thc establishment. facilitics can also value chain actors scctors. be donc by and privatc 2t Nature Kenya Thercfore, amend 2l (e) to recognize application of net gain feasibility nrodels in determining strategic sires, by adding thc term "suitable", and specifying sites that should not be uscd. to rcad: "2 I (e) Facilitate the produclion of nuts and oil crop in the respective cowtty b1: implementing and expanding the planting and replanting program of nuts and oil crops in strategic areas identified as having the nrcst suitable potential, avoiding natural forests, seasonal wetlands and olher critical biodiversity habitats, and the rehabilitation and .fcrtilization of existing nur:; and oil cro Corunrercial cultivation of some nuts and oil crops will havc ncgativc impacts to biodivcrsity and cornmunitics. Thc bill nccds to promote a balanced dcvclopmcnt approach whcrc sites identifled as most potential fbr cultivation are cvaluated using net gain fcasibility models to establish impacts on valued ecological components within that ecosystern. If not feasible, the projects should be stopped at selection stage. 22 Euactnrelt( of county-spcciflc legislation. Ministry of Agriculture Deletc the entire clause The Constitution provides for the cnactmcnt of county lcgislation. The clausc is likely to create double legislation which will lead to conflicts and confusion bctwccl-r the two levels of governnlent. National lcgislation is donc in consultation with the coultty L7

opcrators, wal'ehouscs, proccssors, cooperatives and other associations in that county; (c) licence nuts and oil proccssors; (i) collabolate with rclcvant institutions so as to promote access to fann inputs, affordable crcdit and other tinancial services; II Add the tbllowing functions clause inrmediately after clause 2 I (l) to read as follows: (m) promotc the diversification of nuts and oil crop products and by- products, (n) Put in place a framework for the capacity building and intelaction of famcrs and various players in thc nuts and oil crops industry; 2l (c) Rolc of thc County Govemrnents Ministry of Agricu [ture Amcnd by dcleting the clausc The processing of ntrts and oil crops is for the international market and cntails the importation of raw material. Hindi/ Mokoyc tarnrels Provide for- . Extension services . Provision of farm inputs and credit . Aggrc.qation centrcs Amend to provide for the counties to The establishment of such 11

subscction ( I) shatl uot rclieve the Board of the liahility to pay conrpcnsation or damages to any person for any injury to him or her, his or her property or any ol' his or hcr intercsts caused by the cxercise of any power confcned by this Act or any other written law or by the failure, wholly or partially, of any works. l9 Signing authority Law Kenya Society of We recomntend that the section be deleted. This will allow the Board to set its own regulations on these matters witlr regard to applicable laws and policies. Further a proposal that in the absence of the CEO, then the Board shall authorize another to sign would rcduce the work of the Board to adnlinistrative issucs that would interfcrc with its ability to give ovcrsight to thc managcmcnt This section relates to who has powers to sign docuntents on behalf of thc Board. The section is administrative in nature and slror.rld not be legislated. 2l Role of Govcrnr.r-rcr.rts County Council of County Governors. i. Amend 1he clauses 2 I (b),(c) and (i) to rcad as Ibllows: 21. A courrty governmcnt shall- (b) rnaintain an up-to-datc lcgistcr o1' nuts and oil crop growers, nursery To incorporate the warehouses wlrich storc nuts arrd oil crops and provide lor further f,unctions of thc County Govcrnments in line with the Fourth Schedule to thc Constitution. 10

cat's The Section provides for liability of Board nrcmbcrs and staff but does not sufficicntly cover any pcrson to whorn a suit or proseculioll is brought against in respcct ol any act which is donc or purported to be done by hinr or hcr in good faith and without negligence. We propose Section l7 ol the Bill on Iiability of Board rurembers, officcrs and employees should includc thc following subsections; ( I) Liability shall not attach to the Board or to any of its membcrs, officcrs, agcnts or staff lor loss or darnage incurred as a result of an act or omission done in good faith and without negligence in thc pertbnnance or exercise or the intended performance or exercise of any duty or power imposed by or conferred under this Act. (2) Any expenses incurred by any person in any suit or prosecution brought against him or hcr in any court, in respect of any act which is donc or purportcd to be donc by him or her under the direction of the Board, shall, if the court holds that sucli act was donc in good faith, be paid out ol the funds ol the Board, if such expcnscs arc not recovered by the person in such suit or prosecution. (3) The provisions ot' t1 Law Society ol Kcnya. 9

Functions of the Board tcrm "sustainable" and add a sectiorl (l) to pronrole the avoidancc of ccologically scnsitive areas, to read: "9 (u) regulate and promote tlta sustainable development of tlrc nuts ond oil crop indu.stty". "9 (l) guide investors and farmers lo tt,t,oid antl protect all ecologicolly sen.siln,e areas"- l0 Powers Board. of the Ministry of Agriculture Amend by dcleting the sub-section and inserting 'Open sucl'r bank acoounts for its f'unds as nrav be ncccssa To give the Board a leeway to open various bank accounts as may be necessary. Amend to include a general power that 'Undertake any activity necessary for the firlfillment of any of its functions'. To give leeway to the Board to exercise power as the need rnay arise. t2 Rcmuncration of thc Mernbers ofthc Board Ministry of Agriculture Amcnd by deleting the clause and inserting the foltowing 'The remuneration payable to mcrnbcrs of the Board shall bc detcrmined by thc Salaries and Renturreration Cornmission'. The constitution mandatcs SRC to determine remunerations and othcr allowances in thc public sector. l3 Chief Executive Officcr Ministry of Agriculturc Amcnd to rccluircmcnt is provide fbr the a rninirnur:.r of a bachelor's degree The qualification of a Chief Exccutivc Officer is nranagcrial. Arncnd to provide lor a tcrm of three Align with the Mu,ongozo 8

7l-crnr appointnrent of Ministry of Agricu lture Arncnd by dclcting '6' and rcplacing with'5'. 9 Functions of the Board. Ministry of Agriculture Amend by inserting a new lunction to read 'carrv out such othcr functions as may be assigned to it by this act or any other writtcn law whilc respecting the roles of the two levels of govemmcnt'. The provision caters to any ornitted or unforeseeable emerging f unctions that may support thc Board in achicving its mandate. Council of County Govcrnors. I Amend clauses 9(b) and O to rcad as follows - 9. Thc Board shall- (b) make recommendations to the Cabinet Secretary and County Executive Comrnittee Members on the nationaI strategies, plans and policy relating to the nut and oil crop sector, (g) regulate the import and export of nuts and oil crop products and by- products to conform to the quality or food standards recognized in the intemational market; O Provide capacity building and technical assistance to the County Govemmcnts in the nuts and oil crops value chain. ll Delete clauses 9(a) (c)(h) and (k) in thcir cntirety. To align to the provisions of Part 2 sections I and 7 of the Fourth Schedule to thc Constitution which stipulates that thc agriculture and trade developmer-rt and regulation of agriculture and trade excluding intcntatioual trade are functiorrs fully devolved to County Governments. Further to align with the functions of National Govemment in nuts and oil crops which are; aglicultural policy, institutions of research, intcmational tradc and capacity building and technical assistance to the countics. Naturc Kcnya Arncnd Clause 9 (a) to add ttrc 9 l'unctions ol' the Board 9 7 'l'o providc consistcncy in thc numbering.

Anrend to insert National Treasury to thc rnernbership To align with the Mwongozo and thc State Cor'poration Act. Arrrend by deleting the word 'processor' and strbstituting thereof with 'dealer'. other actors need to be represented on the board. Arnend to provide fbr a nomination process by the farrners' or dealers'. To provide for transparency and faimess in the nomination of the board. 5 (l) (d) Composition Board thc Anrend to provide for a nornination process by the farmcrs' or dealcrs' tunrbrella associations. To provide for transparcncy and fairness in thc nominatiorr of the board. Composition of the Board Council of Governors Amend clause 5(I)(d) and (e) to read as follows: 5. (l) Thc managcmcnt of thc Board shall vcst in a board consisting o1- (d) four persolls with ten years' cxpcricnce in thc nuts and oil industry appointed by the cabinet sccrctary in consultation with thc Council of County Governors, of whom- (i) two shall be larnrers; (ii) onc shall bc a proccssor; and (iii) orrc shalI bc a rcscarchcr (e) two persons nontinated by the Council of County Govcnlors; To align to the provisions of Articlcs 6(2) and 189 of the Constitution which requires the two lcvels of govcrnlncnt discharge their functions in a consultativc matrncr. Wc opinc that the nornination and subscqucnt appointmcnt of thnners and processors reprcscntativcs should bc donc in consultation with thc Council of Governors. We further opine that thc County Governrnents should be represented by two persons to ensure cf'fective reprcsentation. 6 5

orglnizalion lcttve tn environmental conservatiotl und, climlte changa i.r.sues ". 6 Society of We propose that the qualifications fbr Board rrcrnbcrs and the Chairperson should bc separated. Therefore. there is nccd to includc in thc bill a specific subsection providing tbr the qualifications ol thc Chairperson to read: 6(l) No pcrson shall be qualified for appointment as the Chairperson of the Board under subsection 5 (l)(a) unless such person- (a) holds a degree fiorn a university recognized in Kenya; and (b) has at least ten years' cxperience iu matters relating to managcment of a public or private institution, 5 of which shall be in senior leadership and managemeut. This is bascd on thc fact that the Chairperson plays a crucial lcadcrship rolc in guiding thc activities ol' the Board and Inanagelncnt including influencing the direction of policics and stratcgics. The Section generally provides for the qualification of members of the board. 6(b) Qualification for appointment. Hindi/ Mokoye farmers Reduce relnove the requirenrent of a dcgrcc for fanncrs rcprcscntatives Amcnd by dclcting thc 'Researcher' and Replace persons' with 'Four pcrsons'. word 'Five Researchers may bc brought on board administratively on a need basis. 5 Law Kcnya.

APPENDIX VI: COPIES OF STAKEHOLDER SUBMISSIONS ON THE BILL

Tel€phone: 271'aa70l9 Webtite: www.killmo.oo.ke Email: cabinets€cr€tarylokilimo.€o.ke When replying please quote Ref. No. MOALD/C5/ADM/13 VOL.ry J. M. Nyegenye, CBS Clerk of the Senate P.O. Box 41842-00100 N^AIROBI Yours Sincere/y, Hon. Mi a Linturi, EGH KILIMO HOUSE CATHEDRAL ROAD P.O. Box 30028-00100 NAIROBI 27n February,2Q23 Dear \t$r. nl1eJR \er RE: STAKEHOLDERS ENGAGEMENT oN THE NUTS AND oIL cRoPs DEVELOPMENT BrLL, 2023 (SENATE BrLLs No. 47 oF 2023) Reference is made to your letter Ref. sEN/DSEC/scA/coRR/zo24lr|dated 2lst February, 2024 inviting me to submit representations on stakeholders Engagement on the Nuts and oil crops Development Bill, 2023 (Senate Bills No.47 of 2023) to the standing Committee on Agriculture, Livestock and Fisheries on Thursday 29& February ZOZ4, Coincidentally, I have been given a special assignment as Escort of Honour during the sixth session of the United Nations Environment Assembly (UNEA-6) to be held from 26th February to lst March, zoz4atthe uNoN. In light of the aforementioned, and with your considered concurrence, I would wish that my appearance before the committee be rescheduled to a later date. I thank you for your continued support. CABINET SECRETARY REPUBLIC OF KENYA M INISTRY OF AGRICULTU RE AN DLIVESTOCK DEVELOPM E NT OFFICE OF THE CABINET SECRETARY

REPUAUC OF XENYA MINISTRY OF AGRICULTURE AND LIVESTOCK DEVELOPMENT OFFICE OF THE CABINET SECRETARY Telephone:2718870/9 Website: www.kilimo.oo.ke Email: cabinetsecretary@kilimo.oo.ke When replying please quote; REF: MoALF/CSIADMIL2 Vol.5 (20) J.M. Nyegenye, CBS Clerk of the Senate Parliament Buildings P.O. Box 41842-00100 NAIROBI KILIMO HOUSE CATHEDRAL ROAD P. O. Box 30028 NAIROBI 27i February 2024 oea, NJrgrrn$t, MEMORANDA ON THE NUTS AND OIL CROPS DEVELOPMENT BILL, 2023 (SENATE BrLLS NO 47 OF 2023) Reference is made to your letter Ref: SEN/DSEC/SCA/CORR/20121 2023114 dated 21$ February 2024 concerning the above subject matter. Attached herewith, are comments by the Ministry of Agriculture and Livestock Development on the proposed Bill, Yours Sincerely, Linturi, EGH CABINET SECRETARY Hon.

REPUBUC OF KENYA MINISTRY OF AGRICUTTURE AND LTVESTOCK DEVELOPMENT OFFICE OF THE CABINET SECREI-ARY MEMORANDA ON THE NUTS AND OIt CROPS DEVELOPMENT BILL, 2023 (SENATE BrLLS NO.47 OF 2023) BY HON. MITHIKA LINTURI, EGH CABINET SECRETARY FEBRUARY 2024 1

The nuts and oil crops sub-sector has a huge potential to contribute to the food and nutrition security pillar. It contributes significantly to job creation, income generation, and production of raw materials for agro-processing industries. Kenya relies heavily on imported edible oil and in 2022 the value of imports was KES 120 billion. There are 13 scheduled nuts and oil crops namery; cashew, coconut, sesame/sim sim, sunflower, Macadamia, canola/Rapeseed, Groundnuts, oil Palm, Bambara nuts, Jojoba, Safflower, Castor, and Linseed. Overuiew of the Nuts and Oil Crops Sub-sector The nuts and oil crops sub-sector in Kenya plays a significant role in the country's agricultural sector. The subsector contributes to the economy by providing income to farmers, supporting rural livelihoods, and contributing to the country's foreign exchange earnings. The total value of the nuts and oil crops sub-sector for the year 2022 increased to Kes 16.5 billion from Kes 13 billion for the year 202L. The macadamia industry is the leading export earner in the subsector and is grown in the central, Eastern, and Rift valley Regions. Kenya is ranked the fourth largest producer and expofter of macadamia nuts serving the Europe, Asia, and American markets. Coconut and cashew nuts are major value chains in the coastal Region but there is a deliberate effort by the government to expand the growing of the crops into the Eastern and western Regions. The Ministry of Agriculture and 2 Introduction

Livestock Development (MOALD) is working on a revitalization program aimed at replanting the crops by providing seedlings to farmers. Edible oil production in Kenya remains low leading to overreliance on impots. To ensure self-reliance, the ministry is implementing a five-year edible oil crops promotion project that is aimed at enhancing the production and value addition of edible oil crops and reducing imports by half by 2027. Sunflower, canola, soybean, and coconut are the main target crops. oil palm production in the western Region was introduced in 2003. The Ministry is currently revitalizing its production through the establishment of seedling propagation technologies. The seedlings will be given to farmers who will be organized into groups for ease of value addition. The statistics on production, exports, and impofts are as shown in tables 1 to 3. Table 1 - Production Trends of Nuts and Oil Crops Crop Area (Ha) Quantiw (MT) Values (rchs) millions 2021 2022 202L 2022 202L 2022 Macadamia 7,180.00 8,746.77 42,562.40 40,903,02 2,513.885 2,462.142 Coconut 77,565 73,286 86,554 7L,723 5,525,10 8,234.39 Cashew 23,158.00 23,0s8.97 9,121.00 8,331.69 457.3s 4t6.64 Peanut 14,274 13,190 12,898 13,138 L,43L 2,072.48 Bambara 185 209 465 527 163.99 186.29 Sesame 4,881 5,391 3,110.3 3,454.4 229.75 255.09 Canola 4,236 4,381 t4,431 L4,594 690 811 Sunflower 2,045.60 482.82 76.49 Total 133,500 132,330.34 171,162.7 155,175.93 13,O32.O75 16,476.522 3

Table 2 - Exports of Nuts and Oil Crops Produce and Products Table 3 - Edible Oil Imports Current regulatory and institutional framework The Ministry of Agriculture and Livestock Development (MOALD) provides the overall policy direction to the nuts and oil crops sub-sector. 4 Product Quantity (MT) Value Ksh (Millions) Major Destinations 202t 2022 202L 2022 Macadamia Nuts 9,136 11,921.50 10,554.10 t8,704,84 U,S.A, Germany, Netherlands, China, Japan Macadamia oil 187.31 304.52 157.98 256.84 Coconut oil 75 484.52 102.3 93.2 Tanzania, Egypt, Uqanda, USA, Cashew nuts t54.2t 1s0.38 179.67 110.63 U.S.A, U,K, and U,A.E Total 9,553 12,861 LO,994 19,166 Edible oil Volume (MT) Value KES Million 202L 2022 2021 2022 Palm oil 853,689.33 705,358.63 111,282.33 114,290.10 Coconut oil 15,580.34 14,689.53 2,650.70 2,825.47 Sunflower oil 7,638.76 12,742.07 1,166.25 2,561.U Soya bean oil 5,900.97 2,242.22 937,00 510.91 Castor oil 2,908.90 543.71 Canola oil 2,249.08 2,559.64 341,19 654.87 Olive oil 816.21 1,037.tt 278.08 387.19 Sesame oil t2.45 29.t6 3.53 9.0s Peanut oil 2.98 3.48 0.53 0.47 Tota! 888,799.02 739,66L.84 1L7,2L3.32 r2L239.7O

In 2013, the Government initiated legislative reforms in the agricultural sector. The reforms were aimed at streamlining the regulatory function, reducing overlaps in mandates and increasing cost-effectiveness in the management of regulatory boards. These reforms led to the consolidation of various Acts and institutions in agriculture which culminated in the enactment of the Crops Act 2013 and Agriculture and Food Authority (AFA) Act No. 13 of 2013, The Agriculture and Food Authority Act, No. 13 of 2013 established the Agriculture and Food Authority (AFA) as a State Corporation under the MOALD. The mandate of AFA is to develop, promote, and regulate all scheduled crops. Nuts and oil crops are among the scheduled crops. In line with Section 11 of the AFA Act, 2013, AFA established the Nuts and Oil Crops Directorate (NOCD) whose mandate is to develop, promote, and regulate the nuts and oil crops sub-sector. Pursuant to Section 40 of the Crops Act, 2013, the Cabinet Secretary through gazette notice number 151 of 20s August 2020 published the Crops (Nuts and Oil Crops) Regulations, 2020 to guide the development, promotion, and regulation of scheduled nuts and oil crops for the benefit of the growers and other stakeholders. Hon. Senator Hamida Kibwana has sponsored the Nuts and Oil Crops Development Bill, 2023. The Bill seeks to establish the Nuts and Oil Crops Development Board to regulate the production, processing, marketing, and distribution of these crops. The Bill delinks the regulation of the nuts and oil 5

crops by AFA and negates all the gains of the reforms in the agricultural sector. Fufther, this Bill is introduced at a time when the Ministry has put in place structures, strategies, and measures geared towards strengthening AFA to enhance its mandate. H.E the President and Head of State, Dr. William Samoei Ruto, CGH, appointed the chairman of the Board of the Authority on 16s March zoz3. subsequently, the Cabinet secretary, Ministry of Agriculture and Livestock Development, appointed members of the Board vide gazette notice dated 22nd March 2023. These appointments therefore fully operationalize the Authority and are anticipated to put in place all pre-requisite structures geared at efficient and effective service delivery to all scheduled crops, including the nuts and oil crops value chains. comments on the proposed Nuts and oil crops Development Bill, 2023 a) The establishment of the proposed Nuts and oil crops Development Board to regulate Nuts and oil crops shall negate the poliry directjon that informed the merger. This will erode the benefits envisaged in the merger including reducing overlaps in mandates and injecting cost-effectiveness in the management of regulatory boards. b) The purpose of the proposed Nuts and oil crops Development Bill, 2023 is adequately addressed by the Crops Act, 2013, AFA Act, ZOL3, and the 6

Crops (Nuts and Oil Crops) Regulations ,2020. The Ministry is content with the existing legislative and institutional framework. It is therefore the position of the Ministry that the Nuts and Oil Crops Development Bill, 2023 should not be progressed. The summary of the comments on the bill is contained in the matrix attached hereto. 7

a ANALYSIS OF THE COMMEI{TS ON THE PROPOSED NUTS AND OIL CROPS DEVELOPMENT BIL[, 2023 Clause of the Biil Observation Proposal Justification/Re marks 1 The Long Title The name of the Board is Nuts and Oil Crops Development Board and not Nuts and Oil Crops Board Amend and insert the word "Development" before the word "Board" To align with the title of the Bill 2 Clause 2. Interpretation of the term nuts and oil crops There are many other crops which have been omitted. Amend by deleting the definition and substituting thereof with 'nuts and oil crops means any of the crops listed under the second schedule and includes such other crops as the CS on the advice of the board may declare to be a scheduled crop by notice in the gazeffd. Since the crops are many, it may not be possible to capture all of them in a definition and therefore the need to introduce the second schedule where all of them willbe listed Some value chain actors have been left out in the bill (marketing agents, transporters, warehousing, exporters, importers) Amend by insefting a new interpretation 'Dealer includes a person engaged in either collecting, transpofting, storing, distributing, or buying and selling nuts and oil crops produce, products or by- These value chain actors play vital role in development of the nuts and oil crops sub-sector 8 No

No Clause of the Biil Obseruation Proposa! Justification/Re marks products and includes marketing agents, processors, exporters, and importers. Clause 3. Objects of the Bill Refers to nuts and oil crops as an industry Amend by deleting the word 'industry' and substituting it with the word 'subsector' The nuts and oil crops comprise several industries The word 'tree' has been inappropriately used in (b) and (c) Amend by substituting the word 'tree' with 'produce' We process the produce. Not all nuts and oil crops are trees The use of the word 'better' varieties is technically inappropriate under G) Amend by substituting the word 'better' with'improved' Technical language used is improved varieties and not better There is no object on regulation of the nuts and oil sub-sector Amend by inserting a new object to read 'Regulate the Nuts and Oil Crops Sub Sector'. To ensure harmony and a level playing ground in the sub- sector f - use of the word industry Amend by substltuting the word 'industry' with the word 'sub-sector'. The nuts and oil crops comprise several industries 4 Clause a(3) The Headquarters The production of nuts and oil crops spread across the country and Nairobi is the most central 9 3. Providing that the headquafters of the Board shall be in Kilifi County has no basis nor any justiflable merit Amend to substitute the term 'Kilifi' with 'Nairobi'

No Clause of the Bill Observation Proposal Justification/Re marks Clause 5 (1) Composition of the Board The clause is vesting the management of the development board to the board. The clause lacks clarity Amend deleting clause inserting Board consist of' by the and 'The shall To align with the marginal notes Researcher is a member of the Board Amend by deleting the word 'Researcher' and Replace 'Five persons' with 'Four persons' Researchers may be brought on board administratively on a need basis National Treasury is omitted from the composition of the Board Amend to inseft National Treasury to the membership To align with the Mwongozo and State Corporation Act The clause singles out the processor as a member of the board yet there are other value chain actors Amend by deleting the word 'processor' and substituting thereof with 'dealer' 5 (1) (d) It is not clear how the CS will appoint the three farmers and the processor to the board. Amend to provide for a nomination process by the farmers' or dealers' umbrella associations To provide for transparency and fairness in the nomination of the board 6 Clause 7 Term of Appointment Cross-referencing to '6 (1) a, d, and e' is erroneous since the section does not address the membership of the board Amend by deleting '6' and replacing with '5', 7 There is no provision for the Board to carry out any other function Amend by inserting a new function I to read 'carry out The provision caters to any omitted or unforeseeable 10 5. Other actors need to be represented on the board To provide consistency in the numbering Functions of the Board

No Clause of the Bill Observation Proposal Justification/Re marks as may be necessary from time to time such other functions as may be assigned to it by this act or any other written law while respecting the roles of the two levels of qovernment' emerging functions that may suppoft the Board in achieving its mandate 8 Powers of the Board Amend by deleting the sub-section and inserting 'Open such bank accounts for its funds as may be necessary'. To give the Board a leeway to open various bank accounts as may be necessary The bill does not provlde for general power for the Board Amend to include a general power that 'Undertake any activity necessary for the fulfillment of any of its functions'. To give leeway to the Board to exercise power as the need may arise 9 Clause 12. Remuneration of the Members of the Board The clause empowers the CS to determine the remuneration of the board Amend by deleting the clause and inserting the following 'The remuneration payable to members of the Board shall be determined by the Salaries and Remuneration Commission'. The constitution mandates SRC to determine remunerations and other allowances in the public sector TL 10 (1) (e) provides for opening only one bank account for the board

Clause of the Biil Observation Proposal Justification/Re marks 10. Clause 13. Chief Executive Officer The clause limits the qualifications of the CEO to a degree in law, agriculture, and finance Amend to provide for the requirement is a minimum of a bachelor's deqree. The qualiflcation of a CEO is managerial 13 (3) The clause provides for a term of five years for the CEO Amend to provide for a term of three years 11. Clause 21. Role of the County Govemments 21 (c) assigns the role of licensing of processors to County Governments Amend deleting clause by the The processing of nuts and oil crops is for the international market and entails the importation of raw material 27 (m) makes it mandatory for the County Governments to establish storage facilities and aggregation centers Amend to provide for the counties to provide a framework for the establishment The establishment of such facilities can also be done by value chain actors and private sectors 72. Clause 22. Enactment of county-specific legislation provides for counties to enact county- specific legislation Delete the entire clause The constitution provides for the enactment of county legislation, The clause is likely to create double legislation which will lead to conflicts and confusion between the two levels of government. National legislation is done in consultation with the county governments 13. Clause Regulation 23. of the for clause provides promotion, Delete the entire section The provisions are not regulatory and 12 No Align with the Mwongozo

No Clause of the Bill Observation Proposal Justification/Re marks nuts and oil crops facilitation, incentives, etc. This is not regulation of nuts and oil crops as stated in the ma inal law are provided for under clause 21 t4. 25. of Clause Licensing processors Gives the mandate of licensing the processors to the CECM Amend the clause by deleting CECM where it appears and replacing it with Board Licensing of processors should be done by the board because it is intended for the external market and processors utilize imported raw material 25 (2) the application is prescribed in countY legislation Amend the subclause bY deleting county legislation and replacing it with the regulations under this Act Licensing will be done under this act and not through county legislation 15. Clause 25 - to include licensing of Marketing Agents, Exporters and Im ers Regulation of marketing agents, expoders, and impofters has been omitted yet they are impoftant players in the value chain Amend clause 25 to include the marketing agents, exporters, and importers They are imPortant actors in the value chain and need to be regulated 16. Clauses 26,27,28,29 The CECM has been mandated to Publish notices, revoke licenses, give compliance notices, and receive appeals Amend by deleting the word County Executive Committee Member wherever it appears and replacing it with the words The Board Licensing of the players should be done by the board because it is intended for the international markets and processors utilize imported raw material t7. Clause Incentives The clause mentions the cotton industry which is not relevant by the 'cotton Amend deleting words The use of the cotton industry is not relevant to the 35. 13

No Clause of the BiI Observation Proposal Justification/Re marks under the nuts and oil crops sub-sector industry' and replacing them with the words 'sub-sector', nuts and oil crops sub-sector 18. 37. Clause Penalties The clause provides for a fine of not less than Kes. 20,000 Amend to provide for a fine not exceeding five hundred thousand shillings or Imprisonment for a period not exceeding one r or both The law should provide for a maximum fine and penalty. The Kes. 20,000 provided for is low and may not deter malpractices. 19. The clause provides for only four regulations and many other areas would require regulations Clause 38. Regulations provide for the following regulations. a) Procedure for licensing of marketing agents, transpofters, processors, expotters, and importers b) To provide for forms fees to be paid for anything to be done under this Act c) Mechanisms for conflict resolution d) To provide for the submission Amend to To ensure adequate provisions for regulations L4

No Clause of the BiI Observation Proposal Justification/Re marks of returns and reports by the holders of licenses and permits under this Act e) Standards and the manner of grading of the nuts and oil crops f) Rules for ensuring food safety including handling, transpoftatio n, processing, and market standards of nuts and oil crops produce and products. g) Periods for which licenses and registration ceftificates shall be issued h) Regulation of standard industry agreements i) Regulation on com tive 15

No Clause of the B'II Observation Proposal Justification/Re marks 20. Miscellaneous There is no provision for levies for the development of the sub-sector Introduce a new clause to give the CS powers to impose a levy on the nuts and oil crops produce and products It is important to have the levy for the sustenance, development, provision, and general benefit of the nuts and oil crops sub-sector Clause 44 Previous authorization The word authority is used instead of the Board in the last line of the paragraph Amend by deleting the word Authority and substituting it with the word 'Board' To provide clarity and consistency 22. Clause 45. Staff The clause does not provide for staff transition terms of remuneration Does not provide a leeway for the staff who may not wish to join the board Provide adequate safeguards for the staff welfare Amend by inserting a subclause 'If a person does not intend to become a member of staff ofthe Board, the person shall, within a period of 30 days from the appointed day give notice Fairness in staff who might opt not to join the Nuts and Oil Crops Development Board 16 pricing and market access j) Regulation on fees and levies 27. Amend by inserting the following words after the words staff of the board; 'on the same or better terms'

No Clause of the Bail Obseruation Proposal Justification/Re marks in writing to the Board.' Does not provide a leeway for members of staff of AFA who may wish to join the Board Amend by inserting a subclause 'Any other member of staff within the Agriculture and Food Authority may upon consideration and appointment by the Board become a member of staff of the Board after the commencement of this Act'. Faimess in staff who might want to opt in and join the Nuts and Oil Crops Development Board Does not cater for the transition of staff pension Amend to insert a subclause'The staff pensions fund of Kenya Coconut Development Authority Pension Scheme shall on the appointed day vest in the Board'. To manage the staff pension funds *ilrl e*trf Hon. M tun, EGH 77 Date...

I COUNCIL OF GOVERNORS LEGISI.ATIVE MEMORANDUM ON THE NUTS AND OIL CROPS BILL, 2023 (SENATE BILLS NO. 4t OF 2o4) TO SENATE FROM THE COUNCIL OF GOVERNORS llPage

, THE COUNClL OF GOVERNORS, ln recognition of the fact that sovereign power of the state is exercised at two levels of government, that is, the National Government and the County Governments, whose distinctness is recognized by Article 6 (z); ln further recognition of the need to ensure that all legislation are cognizant of the fact that agriculture is a f ully devolved function under the Part 2 of the Fourth Schedule to the Constitution; and Noting that by strengthening the capabilities of our county governments, we can unlock the full potential of the nuts and oil crop value chain, leading to increased income for farmers, iob creation, and overall economic growth across the country. Having reviewed the Nuts and Oil Crops Bill, 2023 (Senate Bills No. +l of zo4) in its entirety, the Council of Governors recommends the following amendments for better implementation of the proposed Act by the County Governments: 5: Composition of the Board 5. (r) The management of the Board shall vest in a board consisting of- (d) five persons with ten years' experience in the nuts and oil industry appointed by the cabinet secretary, of whom- (i) three shall be farmersl (ii) one shall be a processor; and (iii) one shall be a researcher Amend clause 5O@) and (e) to read os follows: 5. (t) The management of the Board shall vest in a board consisting of- (d) four persons with ten years' experience in the nuts and oil industry appointed by the cabinet secretary in consultation with the Council of County Governors, of whom- (i) two shall be farmers; (ii) one shall be a processorl and (iii) one shall be a researcher (e) two persons nominated by the Council of County Governors; To align to the provisions of Articles 6(2) and. 189 of the Constitution which requires the two levels of government discharge their functions in a consultative manner. We opine that the nomination and subsequent appointment of farmers and processors representatives should be done in consultation with the Council of G overnors. 2lPage lntroduction CLAUSE PROVISION OF THE BILL PROPOSED AMENDMENT (e) one person nominated by the Council of County Governors; JUSTIFICATION

a 9. Functions of the Board. We further opine that the County Governments should be represented by two persons to ensure effective re resentation. To align to the provisions of Part 2 sectionstandTof the Fourth Schedule to the Constitution which stipulates that the agriculture and trade development and regulation of agriculture and trade excluding international trade are functions fully devolved to County Governments. Further to align with the functions of National Government in nuts and oil crops which are; agricultural policy, institutions of research, international trade and capacity building and technical assistance to the counties. 9. The Board shall- (a) regulate and promote the development of the nuts and oil crop industry; (b)make recommendations to the Cabinet Secretary, and oversee the implementation of strategies, plans and policy relating to the nut and oil crop sector; (c) promote the diversification of nuts and oil crop products and by-products, (g) regulate the marketing and the exportation of nuts and oil crop products and by-products to conform to the quality or food standards recognized in the international market; (h) put in place a framework for the capacity building and interaction of various players in the nuts and oil crops industry; (j) co-ordinate capacity building training for growers, nursery operators, processors, cooperative societies and other associations in the nuts and oil crops value chain. (k) put in place measures for provision of assistance to farmers which may include farm Amend clouses g(b) ond (i) to read as follows (b) make recommendations to the Cabinet Secretary and County Executive Committee Members on the national strategies, plans and policy relating to the nut and oil crop sector; (g) regulate the import and export of nuts and oil crop products and by- products to conform to the quality or food standards recognized in the international marketl 0) Provide capacity building- and technical assistance to the County Governments in the nuts and oil crops value chain. Delete clouses g(o) (c)(h) ond (k) in their entirety. 9. The Board shall- ii. i 3lPage

2r. Role of County Governments. 22. Enactment of county Specific legislation. 29. Appeal inputs and affordable credit facilities. 21. A county government shall- (b)maintain an up to date register of nuts and oil crop growers, nursery operators, processors, cooperatives and other associations in that county; (c) licence nuts and oil processors; Amend the clauses zr(b),(c) and (i) to read as follows: 21. A county government shall- (b)maintain an up to date register of nuts and oil crop growers, nursery operators, warehouses, processors, cooperatives and other associations in that county; (c) licence nuts and oil processorsl (i) collaborate with relevant institutions so as to promote access to farm inputs, affordable credit and other f inancial services; (m) promote the diversification of nuts and oil crop products and by- product5, (n) Put in place a framework for the capacity building and interaction of famers and various players in the nuts and oil crops industry; zz. (t) A county that produces, processes, distributes or markets nuts and oil crop or products may enact county specific legislation prescribing - (a)... (e)the grounds for the rejection of an application or cancellation of a licence issued under this Act; zz(r)(e) to read as zz(r) (e) the grounds for the rejection of an application or cancellation of a licence issued under this Act and mechanisms for Appeah Amend clause follows: Amend to read as follows: 29. An applicant who is aggrieved by the decision of the county executive committee I To incorporate the warehouses which- store nuts and oil crops and provide for further functions of the County Governments in line with the Fourth Schedule to the Constitution. 4lPage of Dis ute ii. Add the following functions clause immediately after clause zt(l'l to read as fo!lows: i. To provide of Alternative means

member not to issue a licence under this Act may appeal to the High Court against the decision within fourteen days of receipt of the decision. 29. (r) An applicant who is aggrieved by the decision of the county executive committee member not to issue a licence under this Act may appeal to the County Crops Dispute Resolution Committee against the decision within fourteen days of receipt of the decision. (z)n@!s!on of the Dispute Resolution Committee my appeal to the High Court within farrrtccn d:vs aI rprpint nf the decision. 38(z). Without prefudice to the generality of subsection (t), the regulations may provide for (a) conditions for registration; (b) forms to be used in the application for registration, and related activities; Amend by introducing a new clause 3A(z)(e) immediately 38(z)(d) to read as follows: l8(zXe). Establishment of the County Crops Dispute Resolution Committee sub- after Resolution through the formation of county dispute resolution committees before a party can approach the High Court. 38. 5lPage

t LAW SOCIETY OF KENYA Lavington, Opposite Valley Arcade Gitanga Road P.O. r 9-00 ME M THE CLERK OF THE SENATE EVE ILL. 2 F T a (SENATE B|LLS NO.4 UTs AND OIL CRO MARCH 2024 Erlc Theurl, Presldent Law Sodety of Kenya Lavington, opp Valley Arcade, Gitanga Road P.O Box72219 - OO20O Nairobi I Kenya Tel: +254lll @15 3OO Email: lskpresidenttheuri @smail.com/ president@ lsk.or.ke Website: www.lsk.or.ke ON

, lntroduction The Law Society of Kenya i stablished under the Law Society of Kenya rship of all Advocates in Ke The organs of t the Secretariat. rship. the Council y of the Law Soci Kenya. lt comprises a n other mem hom must be membe Currently ent, The Vi Council o o rysost ohe Njo o Up-country Represe B zes, Lindah Kiome. Michael Wabwile, Vincen o Secretary/CEO, Florence W. Muturi One of the Law Society of Kenya statutory objects as provided in section 4(a) of the Act is to assist the Government and the courts in all matters affecting legislation and the administration and practice of law in Kenya. Pursuant to the statutory mandate, the Law Society of Kenya makes presentations on the on the review of the National Land Policy as provided herein under. and ety are the 6en ouncil is the Vice- Preside ociety of Ke mprised o nyo President, Faith e Council i t, Eric Theu Membership Tom K'o re iden the mbers namel

The Nuts and s Developme ,rePresents a cruc towards regulating a the sustainabl the nuts and o ustry in the count various as s production, rketing. and distri s to strea ntire value c ciency and arket. T ment of t Board uthority e for ove dev I nece tions. Fu fa for ing the sector's and oil crops farming 5 uts and oil Ps ssing, , ensuring nifies a centrali ment and impleme rmore, the bill's provisi ste addre c ion. the bi itiveness in t No: Provislon of the bill lssue Proposal I Section 2 The term "Processor" has been defined to mean "a person who This definition should be reworked to ensure that the word that is being defined is not GENERAL COMMENTS development is commendable. as it emphasizes the importance of supporting farmers and encouraging best practices in cultivation. This Bill not only ensures the industry's sustainability but also promotes economic empowerment. However. while the bill addresses key aspects of the nuts and oil crops sector comprehensively, the Law Society of Kenya (LSK) has scrutinized its provisions and makes the following presentations: SPECIFIC COMMENTS

-.{ does the processing of nuts and oil crops" used in its interpretation. This will ensure that the definition is concise especially because section 2l (c) authorizes the county governments to licence nut and oil processors. 2 { 5(3) Section 6 he composi Board s not incl ntation m the PS The ion g ides the q cati bers We propos at the PS Treasury cluded i e Membership the Board b ated would use the body e an impact n the exchequ he costs of running the Boa to be approved uld have National Treasu We propose that th members uld be separated. Therefore, there is eed to include in the bill a bsection roviding for e 6(l) No person shall be qualified for appointment as the Chairperson of the Board under subsection5 (l)(a) unless such person- (a) holds a degree from a university recognized in Kenya: and The Bill should also define the term "processing" since section 25 (l) states that processing of nuts and oil crops shall not be done without a licence. Section 26(5) further creates an offence where processing is done without a licence and a hefty fine of KES one million or imprisonment for a term not exceeding two years or both. The magnitude of this penalty warrants definition of the word "processing". 3

a -I (b) has at least ten years experience in matters relating to management of a public or private institution, 5 of which shall be in senior leadership and management. This is based on the fact that the Chairperson plays a crucial leadership role in guiding the activities of the Board and management including influencing the direction of policies and strategies. 4. I I of Board me staff bu does not suffi r any person to w r prosecution i respect of an ainst in is done by him without r purported r her in goo egligence. 7 of the ty of Board cers and uld include the lon5: Any expenses incurred by it or ainst him spect of any act which is done or purported to be done by him or her under the direction of the Board, shall, if the court holds that such act was done in good faith, be paid out of the funds of the Board, if such expenses are not recovered by the person in such suit or prosecution. Section 17 (l) Liability shall not attach to the Board or to any of its members, officers. agents or staff for loss or damage incurred as a result of an act or omission done in good faith and without negligence in the performance or exercise or the intended performance or exercise of any duty or power imposed by or conferred under this Act.

t L (3) The provisions of subsection (l) shall not relieve the Board of the liability to pay compensation or damages to any person for any injury to him or her, his or her property or any of his or her interests caused by the exercise of any power conferred by this Act or any other written law or by the failure, wholly or partially, of any works. 5 { Section l9 We recommend that the section deleted. This will allow the set its own regulations th regard to Iicies. posal that in the e CEO, then the thorize another to uce the work of ministrative interfere with rsight to the 6. Section 22 This deve legisl enSa ctron p pment r nw inp specific ty na n80 Ps. the been uld only to ng of nuts and oil crops that align with current Bill. This willalso ns like rnng to legislation on the criteria for registration and appeal which have later been addressed in Part lV of the Bill on regulatory provisions. 7 Section 24 The section makes reference to a nuts and oil crop grower yet the entire document does not define who a nuts and oil crop grower. We propose that a nuts and oil crop grower be defined to ensure that there is certainty as This section relates to who has powers to sign documents on behalf of the Board. The section is administrative in nature and should not be legislated.

to who falls under that classification for the purpose of determining who qualifies for exemptions under the same section. Yours faithfully, , W Eric Theuri President Law Sodetv of Kenva

lo o Ihe villoy Nu1 Compan6 I THE VILLAGE NUT COMPANY LIMITET) Ngainl Villagc NYcri CountY P.O. Box 1882-l0l0l Karatina - Kcn)'n Tel:'254 725 707131. .254 705 966011 Email: info@tho illagcnuts.co.kc KRA PIN No. P05l442l5lW Our Ref: |1/CGF/ 3l/19 Your Ref: TBA Date: l3th May 2024 The Chairperson The Standing Committee on Agriculture, Livestock & Fisheries NAIROBI Dear Sir, RE: IN THE MATTER OF THE NUTS AND OIL CROPS DEVELOPMENT BILL, 2023 A. BriefBacksround l.Kenya is an agriculture economy, contributing just over one-third of Kenya's gross domestic product and employing more than 40% of the population. The sector supports the rest of the economy by supplyrng the manufacturing sector with raw materials and generating tax revenue and foreign exchange. 2.The importance of agriculture to our beloved country not only requires but demands that the government puts in place mechanisms to ensure that the sector thrives. This way the economy rvill constantly be rejuvcnated. The .sector cuts across all rvalks of life from the small scale fanuers, tradcrs and/or middlemen, aggregators, ofttakers and manufactures. It is thus desirable that the necessary interventions advanced by the governrnents takes into consideration the uniqueness of this sector. 3.This is feasible by the govcrnment censoriously evaluating the role played by various individuals in the chain ranging from the small farmer to manufacturers. By doing so, the government will understand the various challenges each stage ofthe food chain faces and fonnulate distinctive curative measures to the given problerns. 4.With the intended inception of the Nuts and Oil Crops Development Bill, 2023 (T\e "Bil1"), the govemment has indeed made remarkable phase towards augmenting productivity in the agricultural scctor. Thc said proposed legislation inhoduces noble provisions rvhich holds the promise of increased income for stakeholders. 5.Even though, there are notable reasons to smile following the intended unique recognition of the role nuts and oil crops play in the economy, we are of the firm believe that there is rnore that needs to be done to align the said intended legislation with realities on the market. The intended law clearly overlooks and makes assumptions on salient issues which will inhibit productivity to ruit; i Ft- I

a) The Licensing powers has been left to the sole mandate of the County Govemments. With the com:ption and the increased bureaucracies in counties, unscrupulous traders are likely to take advantage of the situation and continue manipulating the market. b) The question of Licencing fees is ordinarily a thom in the flesh. The intended Law as crafted seems to leave the setting of fees payable to raspective counties. This is likely to bring about imbalance as some counties are likely to come up with fees that are extremely exorbitant to curtail some farmers. c) The Bill clothes the County Executive Committee Mernber (CECM) with an overwhelming mandate receiving the applications for licencing, approving and/or rejecting the said applications. The Bill equally provides for a timeline within which this is to be done. This firstly possess a danger of a one man show kind of operation and leaves the fate of innumerable farmers to the whims of one individual. The Bill is equally loudly silent on the recourse an applicant should explore in the event that the CEC does not issue any response within the said timelines. This can be exploited by unprincipled CECMs to arm-twist stakeholders into dancing to their tunes and demand for bribes. The provision can equally be exploited by connected individuals to completely paralyse the productivity of other markets players. d) The Bill recognizes that some counties might not come up with the legislations relating to nut and oil crops. The Bill procceds to reconmend that in such a scenario, the applicants make applications undcr the Act. It does not however stipulate where such applications ought to be made and the timelines within which the same is to be addressed aird rccoursc in any. e) There is equally no proper dispute handling mechanisms in the Bill to address the burcaucracies that that are likely to be witnessed. 7.It is therefore prudent that your office considers the challenges highlighted above to seal the gaps that are still evident. This rvill in turn help the government in realizing the agenda enumerated it their manifesto in so far as food security is concemed. TIJE \/IT T A,:E ]\IT'TT,-l.\I/(DA \I\,7 T TI /,I'TEI\ 6.Frorn the above, it is evident that the remedial measures proposed by the Bill brings with it gaps that are still exploitc.d by the unscrupulous individuals. If not addressed, players in the market will be confronted daily with infinite inhibitors ranging from government policies both at the county and the national level.

B. Our Pravers 8. From the foregoing, we are of the opinion that your office should initiate measures that are aligrred rvith realities of the day. We therefore propose the following; a) The government should consider coming up with fees policy that is unifonn and applicable across the board. This can be achieved by the Cabinet Secretary in consultation with the Board and other market players coming up with a cap on the licencing fees that can be irnposcd by the counties. This rvill cnsure uniformity across the nut producing areas and alleviate the dangers of some counties attempting to exploit investors. To enswe equity, the fees can be based on the tumover as wihessed under the Crops Act. b) There is equally neecl to harmonize the fees rvith s,hat connties are already demanding from rnarket players to elinrinate the scenarios of double payments coined under different names. c) The Licencing approval should not be left to the sole discretion of the CECMs. To provide for some checks and balances, a body synonymous to the Board under the Bill should be crcatcd within the respective countics rvith lcprcscntations frotn market players rvith the tnandate ofreceiving and reviewing licencing applications. The CECMs or a representative can sit in as a member of the said body. d) An :rpplicant for issuance of the Licence or rcnerval should have a rccourse whenever the issuing authority at the County fails to act rvithin the stipulated timelines. This could be going to the Board directly. Leaving the recourse to only the High Court which might take agcs to dctermine the matter at the detrirnent of a farrner is unsustainable. c) Thc intcndcd lcgislation should bc clearcr on the application of licences dircctly to the Board in the event that a county where a farmer hails from does not have a specific Iegislation on nuts and oil crops. This should relate to the body to whom Licence application is to be made to, the tirnelinss. 0 The dispute rcsolution nechanism needs to be enhanced in line with the Overriding Objective Principles of fast resolution. The primary legislation and the rules however have ignored a vital constituent of tirnelines within which the dispute is to be addressed. Given thc nature of the sector and the products involved, it is inportant that predictable and strict timelines be put in place for dispute resolutions. Left to individuals, the disputes shall forever drag to the disadvantage ofthe citizens and other market players. TI{E \/II r d /:E NTI T-r /-n r rD ,( \ r\,, , rr,i,rr":r\ a

, C. Conclusion 9. The legal framework for the developn:ent and regulation of the nut and oil crops agricultural commodities in Kenya is rvelcomed and its efficacy depends on the robust and proper administation and irnplcmentation ofpractical measures to ensure that the various players in the systern comply and meet the stipulated requirements. 10. Nurturing of free and fair trade practices in the agriculture sector by stimulating and enhancing a predictable environment will no doubt cultivate increased growth in the sector. This will equally eliminate unfair rnar*ct culture dctening thc ability of all players to cope and opcrate competitively. 1 I ' With this addressed, we forecast improvcd export, earnings to farmers, traders and seryice providers in agricultural commodity trading. 12. we respectfully submit look forward to productive engagements with your office. YOURS FAITIIFULLY, TII VILLAGE NUT COI\{PANY (r GING DIRECTOR MA .I-IJE \/II f /l i/:E ^TI I-r ,'\.\l /lI\ ^ tr\/

a Countg Director of Agicttlture EMBU COUNTY GOVERNMENT .,-".-.. )3i4 a DEPARTMENT OF AGRICULTURE, LIVESTOCK, BLUE ECONOMY AND COOPERATIVES DEVELOPMENT OFFICE OF THE CEC MEMBER Address: P.O. BOX 36-60100 Embu E-mail:cecagricembu@gmail.com DATE: Friday, November 01,2024 1.0 Introduction Macadamia is the major nut crop grown in Embu County and Embu is amongst the highest macadamia producing counties in Kenya. The other minor nut crop in the County is Cashew nuts and its farming is currently being promoted in the lower areas (Mbeere North and Mbeere south Sub Counties) through collaboration between the County Government and Nuts / Oil crops Directorate (Agriculture and Food authority - AFA). Farmers are being provided with cashew nut seedlings as a strategy to gradually increase the area under the crop. Sunflower (an oil crop) is being taken up many farmers in the County and commercialization of sunflower farming is expected to pick up as more farmers access seed through the ongoing support from Agriculture and food Authority (AFA). The County has received ten (10) tonnes of sunflower seed from AFA which will be distributed to over 3000 farmers during this rainy season. Nuts and oil crops; Production Statistics Hectarage Production (Mt) Value (Million Kshs) Remarks l. Macadamia 4620 277 2. Cashew nut 6 Establishment ongoing 3. Sunflower 25 32 1.28 Average farm gate price per Kg, Kshs 40 I Nuts and Oil crons nroduction in Embu Countv CROP 865 Average Price, Kshs 60

I Countg Drector of Agriaiture Currently sunflower production is quite low and is mainly for home use, as poultry feed. Few farmers take the produce for processing to get cooking oil and sunflower cake at Agricultural Technology and Development Centre (ATDC), Siakago. There is high potential of increasing Sunflower production, productivity and profitability of Sunflower in the county by supporting farmers with seed and value addition equipment. l.l Macadamiaproductionstatistics a Year 2023 2022 POTENTIAL Area (ha) 865 850 2,000 Total number of trees 13s,800 132,200 312,500 Quantity (m0 4780 25,000 Value (million kshs) 277.2 286.8 Embu County is amongst the highest macadamia producing counties in Kenya. 5,860 farmers are involved in the enterprise with a total area of 865 Ha and estimated 135,156 trees against a potential of 2,000 Ha Production averages 35 Kg per tree against a potential of 80 Kg per tree (fully mature tree). It is commonly intercropped with coffee and other food crops. Challenges to macadamia production l. Low and fluctuating producer prices and lack oforganized marketing. This has led to exploitation by brokers who are not regulated. 2. Harvesting of immature nuts when prices are very good to counter on-farm theft incidences. 3. Little or no value addition at farm gate. 4. Effects of climate change (unpredictable weather conditions) which affects flowering pattem and general performance ofthe tree. 5. Pests and diseases damage which adversely lowers production and nut quality. 6. High cost of farm inputs thus making them unaffordable to majority of the farmers. 7. Inadequate supply ofcertified seedlings as a result ofthe few registered nurseries, leading to high seedling prices. Interventions to promote the development of the Macadamia sub-sector Embu County has a great opportunity to develop the sub-sector and make it one of the leading income earners to the small holder farmer. In an effort to achieve the afore said and promote the sub-sector and,/or address the challenges experienced, the county govemment in collaboration with the national government and other stake holders is undertaking the below listed measures; i. Establishment of aggregation facilities at the ongoing County Agricultural Industrial Park, at Machanga ii. Encourage contract farming iii. Continuous mobilization of farmers to join Macadamia Farmers Cooperative. ) a 4,620

a o Countg Drector of Agrianlture iv. Promotion and support to processing and value addition by the private sector. There are four licensed and operational Macadamia processors in the County. Licensing of macadamia processors is currently done by AFA. This should be devolved to the County Government for ease of enforcement of the Macadamia regulations v. Provision of extension services to the farmers to improve on the crop agronomic practices. vi. The private sector is being encouraged to set-up and register nurseries to enhance certified seedlings production. However, licensing of vii. Supporting farmers to access certified seedlings to farmers Millicent Mugendi Chief Officer- Cooperative Development EMBU COUNTY I I I 't It