Kenya Act or statute

Parliament of Kenya

Warehouse Receipt System Act

Jurisdiction: Kenya
Structure: 50 provisions
Citation: Cap. 350
Dates: As at 31 Dec 2022

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Dates: As at 31 Dec 2022

Source attribution: Source: Kenya Law

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“The Act may be cited as the Warehouse Receipt System Act.”

The Act may be cited as the Warehouse Receipt System Act. Provides definitions for terms used in the Act, including "Agriculture and Food Authority", "agricultural commodity", "Cabinet Secretary", "central registry", "collateral manager", "Council", "county executive committee member", "electronic warehouse receipt", "holder", "inspector", "negotiable receipt", "owner", "person", "purchaser", "warehouse operator", "warehouse operator's lien", "warehouse", "warehouse receipt", and "warehouse receipt system". The Council must employ whatever additional staff it considers necessary to properly and efficiently discharge its functions, on terms and conditions of service it determines. The Council may engage consultants or experts to assist its functions; the Council must publish in the Gazette the names of those engaged under subsection (1). Parliament may provide moneys from time to time for the purposes of the Council.

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PRELIMINARY - 1. Short title

The Act may be cited as the Warehouse Receipt System Act.

Section 1

ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 6. Powers of the Council

The Council has the power to enter into contracts.

Section 6

REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 26. Publication of general inspections

The chief executive officer may publish, from time to time, the results of inspections under the Act, including licensed warehouses' names and locations and operators' names.

Section 26

NEGOTIATION AND TRANSFER OF RECEIPTS - 38. Negotiation by endorsement

A warehouse receipt issued to a person may be negotiated by endorsement and delivery to another specified person.

Section 38

MISCELLANEOUS PROVISION - 50. Consultation

The Cabinet Secretary may consult the Cabinet Secretary responsible for matters related to trade when carrying out functions under this Act.

Section 50

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Showing 50 of 50 provisions

Provision 35Offence 11Short titleSubstitution

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

The Act may be cited as the Warehouse Receipt System Act.

Section 1. Short title Section This Act may be cited as the Warehouse Receipt System Act.

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationSubstitution

Provides definitions for terms used in the Act, including "Agriculture and Food Authority", "agricultural commodity", "Cabinet Secretary", "central registry", "collateral manager", "Council", "county executive committee member", "electronic warehouse receipt", "holder", "inspector", "negotiable receipt", "owner", "person", "purchaser", "warehouse operator", "warehouse operator's lien", "warehouse", "warehouse receipt", and "warehouse receipt system".

Section 2. Interpretation Section In this Act, unless the context otherwise requires— "Agriculture and Food Authority" means the Agriculture and Food Authority established under section 3 of the Agriculture and Food Authority Act (Cap. 317); "agricultural commodity" means all agricultural produce, the storage of which is determined by regulations to be subject to this Act and includes goods that are packed, processed or otherwise transformed and stored in a warehouse; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to agriculture; "central registry" means the central registry established under section 30 ; "collateral manager" means a person appointed by the owner or any other person who has an interest in agricultural commodities stored in a warehouse with the intention of monitoring or taking custody of the agricultural commodities; "Council" means the Warehouse Receipts System Council established by section 3 ; "county executive committee member" means the county executive committee member responsible for matters relating to agriculture in the respective county; "electronic warehouse receipt" means a warehouse receipt that has been generated, sent, received or stored by electronic, optical or similar means; "holder" means a payee or endorsee of a negotiable or non-negotiable warehouse receipt; "inspector" means an officer of the Council or an authorized officer appointed by the Council in the Gazette , to carry out inspections under this Act; "negotiable receipt" means a receipt in which it is stated that the goods received will be delivered to the bearer or on the order of any person named in the receipt; "owner" does not include a mortgagee or pledgee; "person" includes a corporation, partnership or any other form of business entity or two or more persons having a joint or common interest; "purchaser" includes mortgagee or pledgee; "warehouse operator" means a person engaging in the business of hiring out space for storing goods and issuance of warehouse receipts regardless of whether such goods undergo packaging, processing, substitution or other transformation while in the warehouse; "warehouse operator's lien" means the right of a warehouse operator to recover, against the goods covered by a warehouse receipt or on the proceeds thereof, charges payable by the depositor for or in connection with the storage and handling of the goods in the possession of the warehouse operator; "warehouse" means a licensed building or other protected enclosure in which goods are stored for the purpose of safekeeping, issuance of warehouse receipts or license and includes field warehouses and a plant or other facility where the goods are packed, processed or otherwise transformed; "warehouse receipt" means a receipt issued by licensed warehouse operator as evidence that specified commodities of stated quantity and quality, have been deposited at particular locations by named depositors; and "warehouse receipt system" means part or the whole of the process of depositing commodities in a licensed warehouse, the issuance of a warehouse receipt reflecting the quantity and quality of the deposited commodity, the management of the transfer of the receipt as a document of title and includes, but is not limited to, the regulation of warehouses and actors associated in the processes.

Section 2Verify source

Part II

ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL

§ 10ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 10. Staff of the CouncilProvision

The Council must employ whatever additional staff it considers necessary to properly and efficiently discharge its functions, on terms and conditions of service it determines.

Section 10. Staff of the Council Section The Council shall employ such other staff as it may consider necessary for the proper and efficient discharge of the functions of the Council, on such terms and conditions of service as it may, determine.

Section 10Verify source

§ 11ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 11. Consultants and expertsProvision

The Council may engage consultants or experts to assist its functions; the Council must publish in the Gazette the names of those engaged under subsection (1).

Section 11. Consultants and experts Section 11(1) The Council may engage the services of consultants or experts as it considers appropriate to assist in the discharge of its functions under this Act. Section 11(2) The Council shall publish in the Gazette , the names of persons engaged under subsection (1).

Section 11Verify source

§ 12ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 12. Funds of the CouncilProvision

Parliament may provide moneys from time to time for the purposes of the Council.

Section 12. Funds of the Council Section such moneys as may from time to time be provided by Parliament for the purposes of the Council;

Section 12Verify source

§ 13ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 13. Financial yearProvision

The Council's financial year is the twelve-month period ending on 30 June each year.

Section 13. Financial year Section The financial year of the Council shall be the period of twelve months ending on the thirtieth June in each year.

Section 13Verify source

§ 14ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 14. Annual estimatesProvision

The Council must prepare its annual estimates in accordance with the Public Finance Management Act (Cap. 412A).

Section 14. Annual estimates Section The annual estimates of the Council shall be prepared in accordance with the Public Finance Management Act (Cap. 412A).

Section 14Verify source

§ 15ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 15. Parties to proceedings before the CourtProvision

The Council must keep all proper audit books and records of accounts for its income, expenditure, assets and liabilities.

Section 15. Parties to proceedings before the Court Section 15(1) The Council shall cause to be kept all proper audit books and records of accounts of the income, expenditure, assets and liabilities of the Council. Section 15(2) The books of accounts of the Council shall be audited in accordance with the Public Audit Act (Cap. 412B) and the Public Finance Management Act (Cap. 412A).

Section 15Verify source

§ 16ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 16. ReportsProvision

The chief executive officer must cause preparation of quarterly and annual reports of the Council; quarterly reports are due within one month after the quarter, annual reports within four months after the year, annual reports must include financial statements, and the Cabinet Secretary must transmit an annual report to both Houses of Parliament within thirty days of receipt.

Section 16. Reports Section 16(1) The chief executive officer shall, cause to be prepared a report of the operations of the Council for every quarter and an annual report for every year. Section 16(2)(a) in the case of a quarterly report, within one month after the end of the quarter to which the report relates; or Section 16(2)(b) in the case of an annual report, within four months of the end of the year to which the report relates. Section 16(3) Each report shall contain, in respect of the period to which it relates a description of the activities of the Council. Section 16(4) In addition to what is required under subsection (3), each annual report shall include the financial statements of the Council for the year to which the report relates. Section 16(5) The Cabinet Secretary shall, within thirty days after receiving an annual report, transmit it to both Houses of Parliament.

Section 16Verify source

§ 3ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 3. Establishment of the Warehouse Receipt Systems CouncilOffence

Establishes the Warehouse Receipt Systems Council and sets membership, appointment and term rules.

Section 3. Establishment of the Warehouse Receipt Systems Council Section 3(1) There is established a Council to be known as the Warehouse Receipt System Council. Section 3(2)(a) suing and being sued; Section 3(2)(b) taking, purchasing or otherwise acquiring, holding, charging or disposing of movable and immovable property; Section 3(2)(c) borrowing money or making investments; Section 3(2)(d) entering into contracts; and Section 3(2)(e) doing or performing such other things or acts necessary for the proper performance of the functions of the Council and which may lawfully be done or performed by a body corporate. Section 3(3)(a) a chairperson, who shall be appointed by the President; Section 3(3)(b) the Principal Secretary for the time being responsible for matters related to agriculture or a representative; Section 3(3)(c) the Principal Secretary for the time being responsible for matters related to finance or a representative; Section 3(3)(d) one person nominated by the Council of Governors and appointed by the Cabinet Secretary; Section 3(3)(e) the Director-General of Agriculture, Food and Fisheries Authority or a representative; Section 3(3)(f) the chief executive officer of the Council who shall be an ex officio member; Section 3(3)(g) one person nominated by the umbrella body representing farmers in Kenya and appointed by the Cabinet Secretary; Section 3(3)(h) one person nominated by Kenyan members of the Eastern Africa Grain Council and appointed by the Cabinet Secretary; Section 3(3)(i) one person nominated by the umbrella body representing bankers in Kenya and appointed by the Cabinet Secretary; and Section 3(3)(j) one person nominated by the umbrella body representing warehouse operators in Kenya and appointed by the Cabinet Secretary. Section 3(4)(a) persons who have the relevant expertise, qualification and experience in the agricultural sector and any other relevant sector; and Section 3(4)(b) appointed through a competitive and transparent process. Section 3(5)(a) is a citizen of Kenya; Section 3(5)(b) meets the requirements of leadership and integrity set out in Chapter Six of the Constitution; Section 3(5)(c) agriculture; Section 3(5)(c)(i) agriculture; Section 3(5)(c)(ii) finance; Section 3(5)(c)(iii) business; Section 3(5)(c)(iv) procurement; or Section 3(5)(c)(v) business management; and Section 3(5)(d) agriculture; Section 3(5)(d)(i) agriculture; Section 3(5)(d)(ii) finance; Section 3(5)(d)(iii) business; Section 3(5)(d)(iv) law; Section 3(5)(d)(v) procurement; or Section 3(5)(d)(vi) administration. Section 3(6) A decision of the Council shall not be invalid by reason of a vacancy in the Council. Section 3(7) The chairperson and members of the Council appointed under subsection (3)(d), (f), (g), (h), (i) and (j) shall serve for a term of three years but shall, subject to satisfactory performance, be eligible for re-appointment for one further term of three years. Section 3(8)(a) by resignation by a letter addressed to the Cabinet Secretary; Section 3(8)(b) on the written recommendation of the body which the member represents revoking the nomination of that member; Section 3(8)(c) upon being found liable for gross misconduct or abuse of office in contravention of the Public Officers Ethics Act (Cap. 185B) or any other law; Section 3(8)(d) if the member is absent, without permission of the chairperson of the Council, from three successive meetings of the Council of which the member has received notice; Section 3(8)(e) if the Council determines that the member is incapable of performing the member's duties by reason of mental or physical infirmity; Section 3(8)(f) upon adjudication or admission of bankruptcy; or Section 3(8)(g) upon conviction for an offence relating to corruption or contravention of Chapter Six of the Constitution and sentenced for a term exceeding six months imprisonment without an option of a fine.

Section 3Verify source

§ 4ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 4. Functions of the CouncilProvision

The Council facilitates the establishment, maintenance and development of the Warehouse Receipt System for agricultural commodities produced in Kenya.

Section 4. Functions of the Council Section facilitate the establishment, maintenance and development of the Warehouse Receipt System for agricultural commodities produced in Kenya;

Section 4Verify source

§ 5ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 5. Functions of the county executive committee memberProvision

The county executive committee member must establish and maintain a county registry to manage warehouse receipt transactions.

Section 5. Functions of the county executive committee member Section shall establish and maintain a county registry for the management of warehouse receipt transactions under this Act;

Section 5Verify source

§ 6ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 6. Powers of the CouncilProvision

The Council has the power to enter into contracts.

Section 6. Powers of the Council Section enter into contracts;

Section 6Verify source

§ 7ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 7. Conduct of the affairs of the CouncilProvision

The Council must have its business and affairs as provided in the Schedule, and, except as provided in the Schedule, the Council may regulate its own procedure.

Section 7. Conduct of the affairs of the Council Section 7(1) The business and affairs of the Council shall be as provided in the Schedule. Section 7(2) Except as provided for in the Schedule, the Council may regulate its own procedure.

Section 7Verify source

§ 8ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 8. Remuneration of members of the CouncilProvision

Members of the Council must be paid remuneration, fees, allowances and disbursements for expenses as approved by the Cabinet Secretary in consultation with the Salaries and Remuneration Commission.

Section 8. Remuneration of members of the Council Section The members of the Council shall be paid such remuneration, fees, allowances and disbursements for expenses as may be approved by the Cabinet Secretary in consultation with the Salaries and Remuneration Commission.

Section 8Verify source

§ 9ESTABLISHMENT OF THE WAREHOUSE RECEIPT SYSTEM COUNCIL - 9. Chief executive officerOffence

Section establishes a chief executive officer for the Council, to be appointed by the Council through competitive recruitment, who manages the Council day-to-day, serves a three-year term (renewable once subject to satisfactory performance), may resign by written notice to the Chairperson, and must meet specified qualifications and Chapter Six requirements.

Section 9. Chief executive officer Section 9(1) There shall be a chief executive officer of the Council who shall be appointed by the Council through a competitive recruitment process, on such terms and conditions of service as the Cabinet Secretary may approve. Section 9(2) The chief executive officer shall, subject to the direction of the Council, be responsible for the day to day management of the activities of the Council. Section 9(3)(a) holds a degree from a university recognised in Kenya; Section 9(3)(b) has relevant experience in management; and Section 9(3)(c) meets the requirements of Chapter Six of the Constitution. Section 9(4) The chief executive officer shall serve for a term of three years and shall, subject to satisfactory performance, be eligible for re-appointment for a further term of three years. Section 9(5)(a) at any time resign from office by a notice in writing addressed to the Chairperson of the Council; Section 9(5)(b) breaches the terms and conditions of the employment contract; Section 9(5)(b)(i) breaches the terms and conditions of the employment contract; Section 9(5)(b)(ii) is unable to perform the functions of the office by reason of a mental or physical infirmity; Section 9(5)(b)(iii) is convicted of an offence and sentenced to imprisonment for a term exceeding six months; Section 9(5)(b)(iv) adjudged or admits in writing to being bankrupt; or Section 9(5)(b)(v) conducts himself in a manner deemed to be inconsistent with this Act.

Section 9Verify source

Part III

REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES

§ 17REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 17. Licensing of warehouse operatorsOffence

Warehouse operators must apply to the county executive committee member for a licence to operate in the Warehouse Receipt System; applications must be in the prescribed form and include the prescribed fee. Licences last twelve months and may be renewed subject to conditions. Operating without a licence is an offence. County executive committee members must report licence details to the Council within seven days; the Council must publish licensed warehouses annually.

Section 17. Licensing of warehouse operators Section 17(1) A warehouse operator shall apply to the respective county executive committee member for a licence to operate within the Warehouse Receipt System. Section 17(2) An application under subsection (1) shall be in the prescribed form and shall be accompanied by the prescribed fee. Section 17(3)(a) issue a licence where the applicant meets all the requirements set out in regulations; or Section 17(3)(b) the warehouse is not suitable for the proper storage of agricultural commodities; Section 17(3)(b)(i) the warehouse is not suitable for the proper storage of agricultural commodities; Section 17(3)(b)(ii) the operator is incompetent to operate a warehouse in accordance with this Act; or Section 17(3)(b)(iii) sufficient reason exists within the purposes of this Act for not issuing such licenses. Section 17(4) A license issued under this Part shall be valid for a period of twelve months from the date of issue and may be renewed subject to compliance of any set conditions. Section 17(5) A person who operates a warehouse under the warehouse receipts system without a licence issued by the county executive committee member, commits an offence. Section 17(6) Each county executive committee member shall furnish the Council with details of a licence issued under subsection (1) within seven days of issuance of the licence. Section 17(7) The Council shall annually publish the names of licensed warehouses in the Gazette and in at least one daily newspaper of nationwide circulation.

Section 17Verify source

§ 18REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 18. Performance bondOffence

Applicants for a licence must provide a performance bond in a form prescribed by the Cabinet Secretary.

Section 18. Performance bond Section 18(1) A person applying for a licence under this Act shall, further to other requirements prescribed by the Council or imposed under this Act, provide a performance bond in such form as the Cabinet Secretary may prescribe. Section 18(2) A Performance bond shall serve as a financial assurance for the fulfilment of all obligations arising out of the licence under this Act, including potential costs relating to rescue, recovery of other costs and fines, penalties or compensation for violations against this Act, and shall be drawn upon in the prescribed manner. Section 18(3)(a) surety bond; Section 18(3)(b) trust fund with pay-in period; Section 18(3)(c) insurance policy; Section 18(3)(d) cash deposit; or Section 18(3)(e) annuities.

Section 18Verify source

§ 19REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 19. InsuranceProvision

A person must provide an insurance policy covering the warehouse and goods against listed risks; otherwise the person shall not qualify for a licence under this Act.

Section 19. Insurance Section A person shall not qualify for the grant of a licence under this Act unless that person provides an insurance policy securing the respective warehouse and goods against fire, flood, theft, burglary, earthquake, explosion and any other risk as the Cabinet Secretary may prescribe.

Section 19Verify source

§ 20REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 20. Appeal to the CouncilProvision

A person aggrieved by a decision of a county executive committee member may, within thirty days of being notified, appeal to the Council in the prescribed manner.

Section 20. Appeal to the Council Section A person who is aggrieved by a decision of the county executive committee member may, within thirty days of being notified of the decision, appeal to the Council in the prescribed manner.

Section 20Verify source

§ 21REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 21. Revocation of licence and suspension of licence or operationsCommencement

Describes when a licence may be revoked or suspended, sets notice and surrender procedures and deadlines, allows suspension of operations, requires interim management and publication, and prescribes penalties for failure to surrender.

Section 21. Revocation of licence and suspension of licence or operations Section 21(1)(a) if a warehouse operator transfers all or part of his or her control over the licence; Section 21(1)(b) immediately a licensed warehouse commences the process of dissolution or is dissolved; or Section 21(1)(c) if the warehouse operator violates or fails to comply with this Act. Section 21(2) The county executive committee member shall before revoking or suspending a licence, inform the licensee of the intended revocation or suspension, in writing, and give the licensee an opportunity to make representations before making a determination. Section 21(3) Upon the revocation of a licence, the county executive committee member shall, within fourteen days of the revocation, notify the licensee of the revocation and require the licensee to, within fourteen days of receipt of the notification, surrender the licence to the county executive committee member. Section 21(4) A licensee who, without reasonable cause, fails to surrender a licence within the period specified in subsection (3) commits an offence and is liable on conviction to a fine not exceeding one million shillings or imprisonment for a term not exceeding one year, or to both. Section 21(5) The Council may suspend the operations of warehouse operators, inspectors, weighers or graders operating under the Act, for failure to comply with any provision of this Act. Section 21(6) Where a licence has been suspended or revoked, the respective county executive committee member shall appoint an independent warehouse manager to operate the warehouse in the interim until the matter is resolved. Section 21(7) The county executive committee member shall furnish the Council with details of a warehouse whose licence has been revoked within seven days of the revocation of a licence by the county executive committee member. Section 21(8) The Council shall publish the names of a warehouse whose licence has been revoked in the Gazette and in at least one daily newspaper of nationwide circulation. Section 21(9) The Cabinet Secretary shall in consultation with the Council make regulations to provide for management of a warehouse whose license has been suspended or revoked and commodities stored therein.

Section 21Verify source

§ 22REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 22. FeesProvision

The county executive committee member must charge fees for initial warehouse inspection and for issuing a warehouse operator's licence, subject to amounts prescribed by the Council.

Section 22. Fees Section The county executive committee member shall charge fees for initial warehouse inspection and issuance of a warehouse operator's licence as may be prescribed by the Council.

Section 22Verify source

§ 23REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 23. Warehouse Receipts System Dispute Resolution CommitteeProvision

Provides for a Warehouse Receipts Dispute Resolution Committee (composition and term) and allows a person aggrieved by certain Council decisions to appeal to the Committee within thirty days; the Cabinet Secretary appoints the chair (an advocate of at least seven years' standing with dispute resolution experience) and two other experienced persons.

Section 23. Warehouse Receipts System Dispute Resolution Committee Section 23(1)(a) the refusal to grant a licence; Section 23(1)(b) the imposition of any conditions on a licence; Section 23(1)(c) the revocation, suspension or variation of a licence; Section 23(1)(d) a decision of a warehouse inspector; Section 23(1)(e) complaints by registered, licensed, or other persons operating under this Act; or Section 23(1)(f) any other decision of the Council or a county executive committee member under this Act. Section 23(2)(a) a chairperson who shall be an advocate of the High Court of Kenya of not less than seven years standing and with experience in dispute resolution, appointed by the Cabinet Secretary; and Section 23(2)(b) two other persons with experience in dispute resolution, appointed by the Cabinet Secretary. Section 23(3) The term of office of the Warehouse Receipts Dispute Resolution Committee shall be for a period of three years. Section 23(4) A person who has been aggrieved by any decision of the Council relating to the matters set out in subsection (1) may, within thirty days of being notified of the decision, appeal to the Warehouse Receipts Dispute Resolution Committee in the prescribed manner. Section 23(5)(a) the decision is either unlawful under the laws of Kenya; Section 23(5)(b) the decision exceeds the authority of the Council under the Act; Section 23(5)(c) the decision is contrary to the express policies of the Council as set forth in the Act; or Section 23(5)(d) the decision was based on fraud or influenced by corrupt practices. Section 23(6) The Cabinet Secretary in consultation with the Council and relevant stakeholders shall make regulations on the operation and structure of the Warehouse Receipts Dispute Resolution Committee.

Section 23Verify source

§ 24REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 24. Grading and weighing of agricultural productsProvision

Licensed warehouse operators must ensure stored commodities meet Kenya Bureau of Standards and are weighed with certified equipment; grading must be done by graders certified by a mandated institution; the Council must prescribe minimum qualifications and competencies for graders and weighers.

Section 24. Grading and weighing of agricultural products Section 24(1) A licensed warehouse operator shall ensure commodities stored in a licenced agricultural warehouse meet the standards published by the Kenya Bureau of Standards and are weighed using equipment certified in accordance with laws relating to weights and measures. Section 24(2) The grading of agricultural commodities shall be undertaken by agricultural commodity graders certified by a mandated institution. Section 24(3) The Council shall prescribe guidelines on the minimum qualifications and competencies required of graders and weighers.

Section 24Verify source

§ 25REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 25. Inspection of stored productsProvision

The chief executive officer, appointed Council Inspectors or authorised officers of the Council may inspect stored agricultural commodities in licensed warehouses and related warehouse receipt records when considered necessary.

Section 25. Inspection of stored products Section 25(1) The chief executive officer, appointed Council Inspectors or authorized officers of the Council may inspect any agricultural commodity stored in a licenced warehouse and records relating to warehouse receipts where it is considered necessary. Section 25(2) The Council shall appoint by notice in the Gazette inspectors who shall exercise such powers in accordance with regulations made under this Act.

Section 25Verify source

§ 26REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 26. Publication of general inspectionsProvision

The chief executive officer may publish, from time to time, the results of inspections under the Act, including licensed warehouses' names and locations and operators' names.

Section 26. Publication of general inspections Section The chief executive officer may, from time to time publish the results of any inspection made under the Act, including the names and locations of the licensed warehouses inspected and the names of the operators licensed under this Act.

Section 26Verify source

§ 27REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 27. Examination of books and records of licensed warehouses and warehouse operatorsProvision

The chief executive officer may, through authorized officers, employees or agents, examine specified contracts, registries, books, records, papers and accounts of licensed warehouses and their warehouse operators.

Section 27. Examination of books and records of licensed warehouses and warehouse operators Section The chief executive officer may, through authorized officers, employees or agents examine all insurance contracts professional indemnities, warehouse receipts registry, books, records, papers, and accounts of warehouses licensed under this Act and of the warehouse operators working in such warehouses.

Section 27Verify source

§ 28REGISTRATION, LICENSING AND INSPECTION OF WAREHOUSES - 28. RegulationsProvision

The Cabinet Secretary may, in consultation with the Council, make regulations to carry into effect the provisions of this Part.

Section 28. Regulations Section The Cabinet Secretary may, in consultation with the Council, make regulations generally for the better carrying into effect of the provisions of this Part.

Section 28Verify source

Part IV

WAREHOUSE RECEIPTS

§ 29WAREHOUSE RECEIPTS - 29. Warehouse receiptsProvision

A warehouse operator must issue a warehouse receipt for any agricultural commodity deposited in their warehouse.

Section 29. Warehouse receipts Section 29(1) A warehouse operator shall issue a warehouse receipt for any agricultural commodity deposited in his or her warehouse. Section 29(2) A warehouse receipt may be in hard or electronic form. Section 29(3)(a) the name and physical address of the warehouse operator; Section 29(3)(b) the name and physical address of the warehouse where the goods are stored; Section 29(3)(c) the license number of the warehouse operator; Section 29(3)(d) the date of issue of the receipt; Section 29(3)(e) the serial number of the receipt; Section 29(3)(f) the particulars of the depositor; Section 29(3)(g) a statement whether the goods will be delivered to the bearer, to a specified person or his order for negotiable receipt; Section 29(3)(h) the description of the agricultural commodity including the type, grade, crop year and season and weight; Section 29(3)(i) the signature of the warehouse operator, which may be made by his authorized agent; Section 29(3)(j) a statement that the agricultural commodity covered by the warehouse receipt is insured by the warehouse operator for the full value thereof; and Section 29(3)(k) security features to be determined by the Council. Section 29(4) The details in a warehouse receipt shall not be altered for any reason.

Section 29Verify source

§ 30WAREHOUSE RECEIPTS - 30. Establishment of central registryProvision

Establishes a Central Registry operated by the Council; requires infrastructure linkage to a commodities exchange depository; assigns the chief executive officer to set up that infrastructure and to act as Registrar; requires warehouse receipts to be delivered to the Registrar for registration within fourteen days; and permits the Cabinet Secretary (with the Council) to make regulations governing the registry.

Section 30. Establishment of central registry Section 30(1) There is established a Central Registry which shall be operated by the Council. Section 30(2) The Central Registry shall have the necessary infrastructure to link it with a central depository system of a commodities exchange licensed by the Capital Markets Authority. Section 30(3) The chief executive officer shall put in place the infrastructure under subsection (2). Section 30(4) The chief executive officer shall be the Registrar for the purpose of registering any transaction relating to a warehouse receipt issued under the Act. Section 30(5) A warehouse receipt issued in accordance with this Act, including any negotiation in respect of it shall be delivered up to the Registrar for registration within fourteen days of any such issue or negotiation. Section 30(6) A certificate of registration signed by the Registrar shall be conclusive evidence of the issue or negotiation of a warehouse receipt. Section 30(7) The Cabinet Secretary in consultation with the Council may make regulations to govern the day to day operations of the Central registry.

Section 30Verify source

§ 31WAREHOUSE RECEIPTS - 31. Replacement of receiptsOffence

Warehouse operators may issue replacement receipts on a holder's request with a police report, and must notify the central registry when issuing a replacement; presenting the original after replacement is an offence.

Section 31. Replacement of receipts Section 31(1) Any loss, theft or destruction of the warehouse receipt shall be reported to the warehouse operator who shall notify the central registry. Section 31(2) A warehouse operator may, on the request of the holder of a warehouse receipt, issue a warehouse replacement receipt for a lost, stolen or destroyed warehouse receipt, where the request is accompanied by a police report of the loss, theft, or destruction of the receipt. Section 31(3) A warehouse operator shall notify the central registry of the issuance of a replacement for a warehouse receipt that is lost, stolen or destroyed. Section 31(4) A person who presents or deals with the original receipt after a replacement receipt has been issued commits an offence.

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§ 32WAREHOUSE RECEIPTS - 32. Warranty and standing of duplicate receiptProvision

A replacement receipt issued under section 31 has the same standing as the original and does not impose any additional liability on the warehouse operator.

Section 32. Warranty and standing of duplicate receipt Section A replacement receipt issued under section 31 shall have the same standing as the original and shall not impose upon the warehouse operator any additional liability.

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Part V

OBLIGATIONS AND RIGHTS OF WAREHOUSE OPERATOR UPON THEIR RECEIPTS

§ 33OBLIGATIONS AND RIGHTS OF WAREHOUSE OPERATOR UPON THEIR RECEIPTS - 33. Obligation of warehouse operator to deliverProvision

A warehouse operator must deliver the goods described in a warehouse receipt to the receipt holder or depositor when the receipt is presented; if the operator refuses or fails to deliver, the operator must prove a lawful reason for the refusal or failure.

Section 33. Obligation of warehouse operator to deliver Section 33(1) A Warehouse operator shall deliver the goods referred to in a warehouse receipt to the holder of the receipt or depositor upon the presentation of the receipt. Section 33(2) Where the warehouse operator refuses or fails to deliver the goods in compliance with the provisions of this section, the warehouse operator shall be required to prove the existence of any lawful act for the refusal or failure.

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§ 34OBLIGATIONS AND RIGHTS OF WAREHOUSE OPERATOR UPON THEIR RECEIPTS - 34. Wrongful release of goodsProvision

If a warehouse operator delivers stored agricultural commodities to someone not lawfully entitled to possess them, the warehouse operator is liable for the resulting loss.

Section 34. Wrongful release of goods Section Where a warehouse operator delivers agricultural commodities in a warehouse to a person who is not lawfully entitled to the possession, the warehouse operator is liable for the loss.

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§ 35OBLIGATIONS AND RIGHTS OF WAREHOUSE OPERATOR UPON THEIR RECEIPTS - 35. Separation of goods and fungible goodsProvision

Warehouse operators may commingle agricultural commodities of the same type and grade, and are liable to each depositor or holder for care and redelivery of commingled commodities as if stored separately.

Section 35. Separation of goods and fungible goods Section 35(1) A warehouse operator may commingle agricultural commodities of the same type and grade. Section 35(2) A warehouse operator is liable, to each depositor or holder, for the care and redelivery of a depositor or holder of the commingled agricultural commodity to the same extent and under the same circumstances as if the agricultural commodity had been stored separately.

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§ 36OBLIGATIONS AND RIGHTS OF WAREHOUSE OPERATOR UPON THEIR RECEIPTS - 36. Attachment or levy upon goods for which negotiable receipt has been issuedProvision

A warehouse operator cannot be forced to give up possession of goods until the negotiable receipt is surrendered or the receipt is impounded by a court.

Section 36. Attachment or levy upon goods for which negotiable receipt has been issued Section 36(1) If goods are delivered to the warehouse operator by the owner or by a person whose act in conveying title to them to a purchaser in good faith for value would bind the owner, and a negotiable receipt is issued for them, they cannot thereafter, while in possession of the warehouse operator, be attached by garnishment or otherwise, or be levied on under an execution, unless the receipt be first surrendered to the warehouse operator, or its negotiation enjoined. Section 36(2) The warehouse operator shall in no case be compelled to deliver up the actual possession of the goods until the receipt is surrendered to the operator or impounded by the court.

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§ 37OBLIGATIONS AND RIGHTS OF WAREHOUSE OPERATOR UPON THEIR RECEIPTS - 37. Warehouse operator's lienProvision

A warehouse operator has a lien on goods or their proceeds for lawful storage charges, may pursue creditor remedies to collect contracted charges and advances, and must give written notice—by personal delivery or registered letter—and, if the receipt is registered in the Central Registry, must also give notice to the chief executive officer.

Section 37. Warehouse operator's lien Section 37(1) A warehouse operator has a lien on the goods covered by a warehouse receipt or on the proceeds of those goods in his or her possession for all lawful charges in the storage contract. Section 37(2) A warehouse operator is entitled to all remedies allowed by law to a creditor against a debtor, for the collection from the depositor of all charges and advances which the depositor has expressly contracted with the warehouse operator to pay. Section 37(3)(a) the written notice shall be given by delivery in person or by registered letter addressed to the last known place of business or abode of the person to be notified; Section 37(3)(b) if the warehouse receipt has been registered in the Central Registry, the warehouse operator shall also give written notice to the chief executive officer.

Section 37Verify source

Part VI

NEGOTIATION AND TRANSFER OF RECEIPTS

§ 38NEGOTIATION AND TRANSFER OF RECEIPTS - 38. Negotiation by endorsementProvision

A warehouse receipt issued to a person may be negotiated by endorsement and delivery to another specified person.

Section 38. Negotiation by endorsement Section A warehouse receipt issued to a person may be negotiated by endorsement and delivery to another specified person.

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§ 39NEGOTIATION AND TRANSFER OF RECEIPTS - 39. Persons capable of negotiating a Warehouse ReceiptProvision

A warehouse receipt is treated as duly negotiated in favour of a person who purchases it in good faith, for value, and without notice of any defect or claim.

Section 39. Persons capable of negotiating a Warehouse Receipt Section A warehouse receipt shall be regarded as duly negotiated in the manner stated under section 38 to a person who purchases it in good faith, for value without notice of any defect or claim to it by any other person.

Section 39Verify source

§ 40NEGOTIATION AND TRANSFER OF RECEIPTS - 40. Rights acquired after negotiation of warehouse receiptsProvision

Rights acquired after negotiation of warehouse receipts

Section 40. Rights acquired after negotiation of warehouse receipts Section such title to goods as the person who negotiated the receipt to him had ability to convey to a purchaser in good faith for value and also such title to the goods were to be delivered by the terms of the receipt had or had ability to convey to a purchase in good faith and for value;

Section 40Verify source

§ 41NEGOTIATION AND TRANSFER OF RECEIPTS - 41. Rights and obligations of transferors and transferees of negotiable warehouse receiptsProvision

A transferee who gave value and acted in good faith can compel the transferor to endorse a negotiable warehouse receipt; a receipt is not negotiated until endorsed; endorsement in good faith does not make the transferee liable for defaults or fraud by the warehouse operator or prior endorsers.

Section 41. Rights and obligations of transferors and transferees of negotiable warehouse receipts Section 41(1) The transferee of a negotiable warehouse receipt for value and in good faith shall have the right to compel the transferor of such receipt to endorse the receipt. Section 41(2) A warehouse receipt shall not be regarded as negotiated until the transferor endorses it. Section 41(3) The endorsement of a warehouse receipt in good faith shall not make the transferee liable for any default or fraudulent acts on the receipt occasioned by the warehouse operator or previous endorsers.

Section 41Verify source

§ 42NEGOTIATION AND TRANSFER OF RECEIPTS - 42. Stay of execution on reviewProvision

Sets conditions under which a warehouse receipt is treated as genuine and transferable, implies merchantability for contracts transferring goods covered by such receipts, and excludes an implied warranty where a creditor of the transferor in good faith demands or receives payment on the secured debt.

Section 42. Stay of execution on review Section 42(1)(a) the receipt is genuine; Section 42(1)(b) has legal right to negotiate, transfer or assign it; Section 42(1)(c) knows no fact which would impair the validity or worth of the receipt; and Section 42(1)(d) has the right to transfer the title to the goods. Section 42(2) If the contract of the parties is in respect of the transfer of goods to which such warehouse receipt is involved, the fact that the goods are merchantable or fit for that particular purpose, would have been implied. Section 42(3) Warranty shall not be implied in cases where a creditor of the transferor demands in good faith or receives payment of the debt for which such receipt is security.

Section 42Verify source

Part VII

PENAL PROVISIONS

§ 43PENAL PROVISIONS - 43. Issuing of fraudulent warehouse receiptsOffence

It is an offence for a warehouse operator or their officers, agents, or employees to issue or assist in issuing a receipt for goods they know were not received or not under their control.

Section 43. Issuing of fraudulent warehouse receipts Section A warehouse operator, or any officer, agent, or employee of a warehouse operator, who issues or aids in issuing a receipt knowing the goods for which such receipt is issued have not been actually received by such warehouse operator, or are not under his actual control at the time of issuing such receipt, commits an offence and is liable on conviction to a term of imprisonment not exceeding ten years or a fine not exceeding ten million Kenya shillings, or to both.

Section 43Verify source

§ 44PENAL PROVISIONS - 44. Issuing of receipts with false informationOffence

Warehouse operators and their officers, agents or employees must not fraudulently issue or facilitate issuing receipts based on false statements or falsely claim licensing or insurance; doing so is an offence punishable by a fine up to ten million shillings or up to ten years imprisonment.

Section 44. Issuing of receipts with false information Section A warehouse operator, or any officer, agent, or employee of a warehouse operator, who fraudulently issues or knowingly facilitates the fraudulent issuing of a receipt for goods based on a false statement or a false statement to the effect that the warehouse is licensed under this Act or the goods are insured if they are not so insured or fails to disclose such fact, commits an offence and is liable on conviction to a fine not exceeding ten million shillings or to a term of imprisonment not exceeding ten years, or to both.

Section 44Verify source

§ 45PENAL PROVISIONS - 45. Unlawful issuing of duplicate ReceiptsOffence

Warehouse operators and their officers, agents or employees must not issue or facilitate issuing duplicate or additional negotiable receipts for goods knowing a previous receipt is outstanding and not cancelled, unless they plainly mark it "Replacement"; doing so is an offence punishable by a fine not exceeding ten million shillings or imprisonment not exceeding ten years, or both.

Section 45. Unlawful issuing of duplicate Receipts Section A warehouse operator or any officer, agent, or employee of a warehouse operator, who issues or facilitates the issuing of a duplicate or additional negotiable receipt for goods knowing that a former negotiable receipt for the same goods or any part of them is outstanding and not cancelled, without plainly placing upon the face thereof the word "Replacement", commits an offence and is liable, on conviction, to a fine not exceeding ten million shillings or a term of imprisonment not exceeding ten years, or to both.

Section 45Verify source

§ 46PENAL PROVISIONS - 46. Depositing goods without proper titleOffence

A person who deposits goods that belong to someone else in a warehouse licensed or registered under this Act without the owner's approval commits an offence and may be jailed for up to fourteen years.

Section 46. Depositing goods without proper title Section A person who deposits goods whose title belongs to another party in a warehouse registered or licensed under this Act without the approval of the owner, commits an offence and is liable on conviction, to a term of imprisonment not exceeding fourteen years.

Section 46Verify source

§ 47PENAL PROVISIONS - 47. ObstructionOffence

A person must not obstruct inspection of a registered or licensed warehouse in contravention of this Act or any other law; doing so is an offence punishable by a fine not exceeding one million shillings or imprisonment not exceeding five years, or both.

Section 47. Obstruction Section A person who obstructs the inspection of a registered or licensed warehouse in contravention of this Act or any other law, commits an offence and is liable on conviction, to a fine not exceeding one million shillings or to a term of imprisonment not exceeding five years, or to both.

Section 47Verify source

§ 48PENAL PROVISIONS - 48. General penaltyOffence

A person convicted of an offence under the Act for which no other penalty is specified may be fined up to three hundred thousand shillings, imprisoned for up to six months, or both.

Section 48. General penalty Section A person convicted of an offence under this Act for which no other penalty is specified is liable to a fine not exceeding three hundred thousand shillings, or to imprisonment for a term not exceeding six months, or to both.

Section 48Verify source

Part VIII

MISCELLANEOUS PROVISION

§ 49MISCELLANEOUS PROVISION - 49. RegulationsInterpretation

The Cabinet Secretary, in consultation with the Council, may make regulations to carry into effect the intent and purposes of the Act, including regulations on insurance policy, appeals procedure, qualifications and appointment of warehouse inspection officers, and the form of warehouse receipts.

Section 49. Regulations Section 49(1) The Cabinet Secretary, in consultation with the Council, may make Regulations for the carrying into effect the intent and purposes of this Act. Section 49(2)(a) on insurance policy required under this Act; Section 49(2)(b) for the procedure for appealing to the Council or the Appeal Committee; Section 49(2)(c) for the qualifications and appointment of officers undertaking inspection of warehouses registered or licensed under this Act; and Section 49(2)(d) on the form of warehouse receipts, whether negotiable or non-negotiable. Section 49(3)(a) the purpose and objective of the delegation under this section is to enable the Cabinet Secretary to make regulations to provide for the better carrying into effect the provisions of this Act; Section 49(3)(b) the authority of the Cabinet Secretary to make regulations under this Act will be limited to bringing into effect the provisions of this Act and fulfilment of the objectives specified under this section; and Section 49(3)(c) the principles and standards applicable to the regulations made under this section are those set out in the Interpretation and General Provisions Act (Cap. 2) and the Statutory Instruments Act (Cap. 2A).

Section 49Verify source

§ 50MISCELLANEOUS PROVISION - 50. ConsultationProvision

The Cabinet Secretary may consult the Cabinet Secretary responsible for matters related to trade when carrying out functions under this Act.

Section 50. Consultation Section The Cabinet Secretary may, in carrying out the functions under this Act, consult the Cabinet Secretary responsible for matters related to trade.

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Legislative relationships

6 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

5 instruments

Agriculture and Food Authority Act
Section 2
Cabinet Secretary to make regulations under this Act
Section 49
Council or a county executive committee member under this Act
Section 23
Council shall be audited in accordance with the Public Audit Act
Section 15
Council shall be prepared in accordance with the Public Finance Management Act
Section 14

N–S

1 instrument

Public Officers Ethics Act
Section 3

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