Dairy Industry Act

The Act may be cited as the Dairy Industry Act.

The Act does not apply to any part of the Non-scheduled Areas, except for dairy produce from those Areas sold or intended for sale in Scheduled Areas, municipalities or townships, unless the Central Agricultural Board has been consulted.

Section 3 provides definitions used in the Act, listing terms such as "Board", "butterfat", "dairy produce", "producer", "retailer", "package", "ghee", "milk", and others with their meanings.

The Chairperson, or if absent the vice-Chairperson, or if both are absent a member elected by the Board, must preside at all Board meetings.

The presiding member has both a casting and a deliberative vote; the majority of members present and voting decides; the quorum is six excluding the Chairperson or member presiding; and, subject to the quorum rule in subsection (2), acts, decisions or proceedings of the Board are not to be questioned for vacancies or defective appointments.

The Board's common seal must be authenticated by the Chairperson (or an authorised member) together with the executive officer, secretary, or another person authorised by the Board, and the seal shall be officially and judicially noted.

The Board may have its documents (except those required to be under seal) and its decisions signed by the Chairperson, the executive officer, the secretary, or an authorised member.

The Board must hold ordinary meetings at least once every three months and as needed; the Chairperson must convene ordinary meetings at times and places he deems fit; the Chairperson (or vice-Chairperson) must convene a special meeting on a requisition signed by at least three members, and that special meeting must be held within twenty-one days of receipt of the requisition.

The Board must appoint a Consumers' Committee, may appoint other committees, committees must be composed of persons the Board desires, committees may create subcommittees, and the Board may pay reasonable travelling and other expenses to non-staff committee members.

The Board may from time to time make standing orders to regulate its meetings, business conduct and the duties of its officers and employees.

Establishes the Kenya Dairy Board as a corporate body with powers to hold property, enter contracts and sue or be sued, and states that it is not to be treated as an agent or property of the Government except where acting as agent for the Cabinet Secretary.

The Cabinet Secretary appoints the Board’s twelve members, including specified categories and panels, and the Board must annually elect a vice-Chairperson.

The Cabinet Secretary may appoint a temporary member when a Board member is unable to perform duties; temporary members have the powers of a member; retired or resigned members are eligible for reappointment; the Cabinet Secretary may remove a member if satisfied of incapacity or unfitness.

The Cabinet Secretary must determine Board members' remuneration (taking into account recommendations under section 21(3)). The Board may pay travelling and other reasonable expenses incurred by members by reason of their office. No public officer is entitled to remuneration or expenses under this section.

The Board may employ an executive officer, a secretary and other officers, servants and agents as necessary or desirable for its efficient conduct and operation.

The Board may create and contribute to pension/superannuation and medical funds for its officers and employees, and may require those officers and employees to contribute to them.

The Board must perform functions to organise, regulate and develop dairy production and markets, improve quality, secure reasonable prices, promote research, permit private enterprise consistent with producer and consumer interests, ensure efficiency measures, and must follow directions from the Cabinet Secretary when exercising its powers.

The Board must manage and utilise its funds, assets and property in line with the Act and regulations to promote the dairy industry's best interests; the Board's expenses must be paid from its own funds.

Allows making regulations prescribing grades and minimum standards for dairy produce for importation, exportation, or sale within Kenya.

Allows regulations to apply to any specified area, class of persons, or type or description of dairy produce.

The Board must hold annual regional meetings and an annual delegates meeting; the Chairperson (or an appointed member) must preside at regional meetings; the Board must notify the Cabinet Secretary at least six weeks before the annual delegates meeting; the Cabinet Secretary must invite at least ten consumer representatives (at least seven after consulting the Consumers’ Committee) who may speak but not vote; the Board may convene other meetings and may make standing orders.

The Board must include in the business at regional meetings or meetings of delegates any matter notified in writing by at least ten registered producers in the region or by a delegate of registered producers.

The Cabinet Secretary may, by order, empower the Board to compulsorily acquire dairy produce; the Board must publish notice at least twenty-one days before applying; persons who may suffer detriment may object in writing within twenty-one days of that publication; obstructing or impeding the Board in such acquisition or failing to comply with reasonable requirements is an offence punishable by a fine not exceeding ten thousand shillings or imprisonment up to one year.

The Board has powers, using its funds, to acquire and dispose of property, erect depots/factories/stores, handle dairy produce (including export), provide housing or advances for officers, and let houses to officers on terms it decides.

The Board may open accounts and set up special funds; it can choose banks and decide when accounts or funds are necessary.

The Board may invest the Board's moneys in certain securities, including those trustees may invest in under the Trustee Act (Cap. 167), and other securities approved by the Cabinet Secretary responsible for Finance.

The Board may make loans to persons or grant subsidies to producers or manufacturers, subject to terms and conditions approved by the Cabinet Secretary.

The Board may borrow money and mortgage or charge its property with the consent of the Cabinet Secretary and subject to conditions the Cabinet Secretary thinks fit.

The Board must keep proper books of account and related records, including yearly income/expenditure statements and balance sheets, and prepare other accounts the Cabinet Secretary requires.

Section 30 requires the Cabinet Secretary to appoint qualified auditors who must annually audit the Board's accounts; the Board must provide records and pay audit expenses, submit annual reports and financial statements within seven months of its financial year-end (or longer if approved), and publish the reports as specified by the Cabinet Secretary.

"Primary producer" means a person who produces milk for sale, but does not include persons employed by him for that purpose.

Primary producers must register and provide specified particulars; newly starting producers must register within one month; registered producers must notify the Board in writing within one month of any change in particulars.

Primary producers who operate without registering, who wilfully fail to supply required particulars, or who supply materially false particulars commit an offence and may be fined up to two thousand shillings.

The Board must maintain a register for this Part and record particulars supplied under section 32; it may remove particulars after written notice if it reasonably believes a person is no longer a primary producer; the register is prima facie proof of registration status.

If a company breaches this Act or its regulations, every director, manager, secretary and other officer of the company who knowingly took part in the breach will be guilty of the breach and liable to the same punishment.

A person aggrieved by a decision of the Board or its agent may appeal to the Agricultural Appeals Tribunal within one month after being notified of the decision.

This Act and its regulations supplement and do not derogate from existing written public health laws.