Tea Act

This Act may be cited as the Tea Act.

This section provides definitions of terms used in the Act.

The Board of Directors may create committees and may co-opt additional persons to sit on those committees when their knowledge and skills are necessary for the Board to perform its functions and exercise its powers.

The Board of Directors may, by resolution, delegate any of its powers or functions to a committee, member, officer, employee or agent of the Board.

The Board of Directors shall be paid such remuneration or allowance as the Cabinet Secretary, in consultation with the Salaries and Remuneration Commission, shall determine.

The chief executive officer is to be competitively recruited and appointed by the Board; the CEO manages day-to-day affairs; the CEO serves a three-year term and may be reappointed for another three years upon satisfactory performance.

Resignation must be in writing and addressed to the chairperson of the Board of Directors.

The Board must competitively recruit and appoint a Corporation Secretary, set the secretary's terms upon advice of the Salaries and Remuneration Commission, the secretary must meet specified qualifications, and the secretary must perform specified governance and filing duties.

The Board may employ officers, agents and staff necessary to carry out its functions and may determine their terms and conditions; the Board must take into account gender, regional and ethnic diversity, youth and persons with disabilities when employing staff.

Affixing the Board's common seal must be authenticated by the signature of the chairperson and the chief executive officer or by a person designated by the Board.

All letters, instruments and Board decisions must be signed by the chief executive officer, or if the chief executive officer is absent, by a person authorised by the Board.

The Board of Directors must conduct its business and affairs in accordance with the First Schedule.

Creates a Board called the Tea Board of Kenya and lists corporate powers including suing and being sued, acquiring and disposing of property, borrowing and lending money, and performing acts necessary to carry out its functions.

The Board's headquarters must be in Nairobi City County, and the Board may establish branches in Kenya as it considers necessary for efficient performance of its functions.

The Board must develop, promote and regulate the development of the tea industry.

Section 6 lists the powers of the Board, including entering contracts; managing and administering the Board's assets and Tea Fund; receiving and disbursing gifts and grants in accordance with the Act; collaborating with bodies within or outside Kenya; determining expenditure and reserves; investing funds (subject to Cabinet Secretary approval); operating a bank account; and creating or joining bodies to promote the tea industry.

Section 7 describes who are members of the Tea Board, including a chairperson appointed by the President (by notice in the Gazette), specified Principal Secretaries or their nominees, nominated and elected representatives from tea blocks and growers, traders, and a chief executive officer who is an ex‑officio member; the Cabinet Secretary shall appoint certain members by Gazette and the chairperson appointment requires a degree and relevant tea-sector experience.

Specified appointees serve three-year terms, renewable once; appointments must be staggered so expiries fall at different times, with no more than six months between appointments.

States: 'Section is absent from three consecutive meetings of the Board without notifying the chairperson.'

Section 20(1)(a): the Board, on behalf of the national government, must be responsible for licensing and charging of levies; Section 20(2): the national and county governments must provide an enabling environment for the development of the tea sector.

Section 21. Registration of small scale tea growers and medium scale tea growers Section 21(1) A small scale tea grower and medium scale tea grower shall register with the tea factory to which the respective tea growers deliver green leaf

The Board of Directors of tea factory limited companies must have at most five members; must put in place mechanisms so no more than two-thirds are of the same gender; must be elected by one grower, one vote; and the Board may appoint a replacement from the respective block during a member's temporary absence.

Large scale tea growers must register with the Board in a prescribed form and pay the prescribed fee; the Cabinet Secretary must make regulations for registration procedure and appeals; growing tea without registration is an offence punishable by a fine up to one million shillings, or imprisonment up to two years, or both.

The manager of a tea factory must issue a certificate of registration to small, medium or large scale tea growers in the form prescribed in regulations.

Persons must not manufacture tea for sale except under a licence; applicants must apply to the Board in a prescribed form and pay the prescribed fee; the Board may issue, refuse, cancel, vary or suspend licences and must ensure certain procurement policies for tea factory limited companies before issuing or renewing licences.

Register of manufacturers: the full names of the manufacturer.

Makes certain manufacture, possession or dealing with tea contrary to the Act an offence and prescribes penalties including fines up to ten million shillings and imprisonment up to five years; provides deeming rules for unexplained possession and requires courts to order forfeiture of tea and conveyances used in the offence subject to limited judicial discretion.

Warehouse operators must register with the Board; persons must not store tea unless registered; the Cabinet Secretary must make regulations for registration and appeals; contravening subsection (2) is an offence punishable by imprisonment up to three years or a fine not exceeding five million shillings or both.

Tea packers must register with the Board; unregistered persons must not pack tea; the Cabinet Secretary must make regulations for registration and appeals; contravention is an offence punishable by up to three years imprisonment or a fine up to five million shillings or both.

People intending to buy, export or import tea must register with the Board; carrying on those businesses without registration is prohibited; the Cabinet Secretary must make registration regulations; contravention is an offence punishable by imprisonment up to three years or a fine up to five million shillings or both.

Section 31 sets pre-import requirements for tea imports (evidence of local unavailability, sample and pre-import verification certificate, and pre-import approval) and prescribes penalties for contravention.

Tea brokers must register with the Board; unregistered persons may not negotiate tea sales; remuneration to brokers must not exceed 0.75% of gross sales; contraventions of those rules are offences with imprisonment or a fine.

Management agents must register with the Board; unregistered persons must not provide professional services to a tea factory; management agents must submit prescribed annual returns to the Board and county government; the Cabinet Secretary may prescribe registration and appeal regulations; contravention is an offence with imprisonment up to three years or a fine up to five million shillings or both.

Section 34 allows persons intending to manufacture or deal in tea to hire management agents under management agreements, requires management agents to sign agreements with each tea factory they serve, limits management agent remuneration to 1.5% of annual net tea sales, assigns staff costs to management agents, excludes Company Secretarial services from agents' offerings, permits tea factories to recruit or outsource a Company Secretary (and to share one jointly), and prohibits directors from serving in companies with direct or indirect commercial relationships with the tea factory (with a duty to relinquish such positions).

Tea auction organizers must register with the Board; dealing as an organizer without registration is prohibited; the Cabinet Secretary must make registration regulations; contravention carries up to three years' imprisonment or a fine of up to five million shillings or both.

Sets mandatory auction procedures for tea exports: registration for tea factory companies, electronic auction platform, payment and remittance timing, and trading rules approval.

Persons intending to operate as commercial green leaf transporters must register with the Board; carrying on that business without registration is prohibited; the Cabinet Secretary must make regulations for registration and appeals; contravention of the registration prohibition is an offence punishable by imprisonment not exceeding three years or a fine not exceeding five million shillings or both.

Persons intending to establish a commercial tea nursery must register with the county government; establishing without registration is prohibited; the Cabinet Secretary will make regulations for registration procedure and appeals; contravention is an offence punishable by up to three years' imprisonment or a fine not exceeding five million shillings or both.

The Board must consider specified compliance and fitness factors before granting, renewing or licensing registrations.

A licence issued under this Act is subject to conditions the Board may determine, conditions specified in the licence, and any prescribed conditions; the Board must consider an applicant's professional and moral suitability and satisfy itself that the applicant is a fit and proper person, with assessment criteria prescribed in the Second Schedule.

An application for renewal of a licence must be made to the Board in a prescribed form not later than the first day of June in which the current licence is due to expire; a late application may be made on payment of a late application fee as prescribed by the Board.

A licence may be revoked or altered if an offence under this Act or in relation to the licensed activity under any other written law has been committed by the licence holder or any employee of the licence holder.

If a licence is revoked, the licence holder must immediately surrender it to the Board; separately, a licence holder may at any time surrender the licence to the Board and the licence then ceases to have effect immediately.

An appeal must be lodged within thirty days from the date the appellant first received notice of the decision.

Fees, commissions or other dues charged by a broker, management agent or an auction organizer must be subject to prior approval by the Board.

If a person blends Kenyan tea with tea produced outside Kenya they must declare the percentage of Kenyan tea on the packaging and on the blend sheet.

County governments must not impose fees that prejudice national economic policies or mobility; the Cabinet Secretary must put in place mechanisms, using Intergovernmental Relations Act structures, to harmonize fees and charges on tea across counties.

Tea buyers or exporters must value-add at least 40% of their annual Kenyan tea exports within eight years of the Act's commencement; the Cabinet Secretary must facilitate a Common User Facility for tea value addition in accordance with regulations and consultation with the Board.

The Board may appoint qualified persons as crop inspectors and may, by regulation, set the qualifications for a crop inspector.

Provides for entry and inspection of land or buildings occupied by the holder of a manufacturing licence or a person registered under this Act.

Owners, occupiers or persons on entered land or premises must give reasonable assistance to the inspector; a person who refuses, unreasonably delays or fails to comply with that requirement commits an offence.

A person must not prevent, hinder or obstruct an inspector performing functions, duties or exercising powers under this Act; contravention is an offence punishable by a fine up to two million shillings, or imprisonment up to three years, or both.

A party who is not satisfied with the decision of the Board may, within thirty days, appeal to a Court of competent jurisdiction.

The Board and its members, officers, agents and staff are exempt from liability for loss or damage to a person for acts or omissions done in good faith and without negligence when performing or intending to perform duties or powers under this Act.

A person who commits an offence under this Act for which no penalty is provided shall be liable, on conviction, to a fine not exceeding five hundred thousand shillings or a fine not exceeding twice the value of the tea or tea products or, to imprisonment for a term not exceeding one year, or to both.

If a body corporate or association commits an offence under the Act, a director, partner or any person involved in management is treated as having committed the offence.

If there is a conflict between this Act and another Act about developing the tea crop, this Act's provisions prevail.

The Cabinet Secretary may, in consultation with the Board, make regulations covering many aspects of the tea industry to carry out this Act.

Allows the Cabinet Secretary to impose a tea levy by Gazette notice; requires the Board to collect the levy (with specified rates) and allocates proceeds among stabilization, Board functions, Tea Research Foundation, and infrastructure; failure to pay is an offence.

Establishes the Tea Fund, to be managed by the Board, and lists sources of monies and the Fund's purposes.

Establishes the Tea Research Foundation and grants it corporate powers including suing and being sued; acquiring and disposing of property; borrowing and lending money; entering into contracts; and doing other acts necessary to perform its functions.

Section 56 lists the functions of the Tea Research Foundation, requiring the Foundation to promote, co-ordinate and regulate tea research; expedite equitable access to research information, resources and technology and promote application of research findings; and to carry out specified policy, coordination, funding, training, liaison and information-sharing functions.

The National Assembly may appropriate monies for the Board.

The Board must prepare and approve annual estimates of its revenue and expenditure, with preparation at least six months before each financial year and Board approval before the year starts.

The Board must ensure proper books and records of accounts for its income, expenditure and assets are kept.

The Board must submit annual reports, statements of account and the Auditor-General's report to the Cabinet Secretary within three months after each financial year (or a longer period if approved by the Cabinet Secretary); the Board must publish them if the Cabinet Secretary requires; and the Cabinet Secretary must submit them to Parliament within fourteen days of receipt (or within fourteen days of the next sitting if Parliament is not sitting).

The Board's financial year is a period of twelve months ending on 30 June.

A person who is aggrieved or likely to be aggrieved may file a complaint requesting the Board to enforce this Act against a licensee; the complaint must cite specific provisions, state supporting facts, and attach relevant documents; the Board must provide a written response within fifteen days; a licensee must submit a response within fifteen days of notification; the Board shall provide copies of documents filed by each party (subject to confidentiality) and may dismiss complaints for specified reasons, notify and explain dismissals, allow additional filings, extend filing times for good reasons, request additional information, or direct audits/investigations.

A complainant may withdraw its complaint in writing addressed to the Board and the licensee; withdrawal does not prevent the Board from taking enforcement action on its own motion in the public interest.

The Board must decide a complaint within sixty days after receiving all necessary information; it may extend that period by written notice before the sixty-day period expires.

Section 65 sets out steps for enforcement: (1) notification and opportunities for the licensee to respond and a decision within sixty days; and (2) the Board may extend the sixty‑day review period by written notice.

During an enforcement proceeding, the Board may issue an interim directive ordering a licensee to cease and desist from specified conduct.

Section 67 allows the Board to impose several enforcement measures (a written warning; directing a licensee to cease conduct; directing remedial action; declaring agreements void; imposing a financial penalty related to breach duration; or suspension/cancellation of a licence), and gives an aggrieved person the right to appeal to the High Court.

A party submitting information may ask the Board to treat it as confidential; the Board must grant that request if the party shows the information is commercially sensitive or its disclosure would have a material adverse impact.

All property that immediately before commencement was vested in the Government for the use of the Tea Directorate and the Tea Research Institute shall, on commencement, vest in the Board and the Foundation respectively, subject to all interests, liabilities, charges, obligations and trusts; except such property as the Cabinet Secretary may specify in writing.

Proceedings and claims pending about actions and activities covered by this Act must be continued or enforced by or against the Board and the Foundation in the same way they would have been by or against the Agriculture and Food Authority and the Kenya Agricultural and Livestock Research Organization.

Any reference to the Agriculture and Food Authority in any written law or instrument, in relation to tea, must be read as a reference to the Board upon commencement of this Act.

Licences and registrations that existed before the appointed day remain valid until they expire; licences and registrations issued after that day will be issued under this Act.

Staff employed in the Tea Directorate by the Agriculture and Food Authority before this Act become staff of the Board; staff employed in the Tea Research Institute by KALRO before this Act become staff of the Foundation.

Defines "appointed day" as the day this Act comes into operation.