Kenya Act or statute

Parliament of Kenya

Sugar Act, 2024

importationsugar

Jurisdiction: Kenya
Structure: 66 provisions
Citation: Act No. 11 of 2024
Dates: As at 7 Nov 2024

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Dates: As at 7 Nov 2024

Source attribution: Source: Kenya Law

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“This Act may be cited as the Sugar Act, 2024.”

This Act may be cited as the Sugar Act, 2024. Provides definitions for terms used in the Act (for example: “agreements”, “Board”, “by-product”, “Cabinet Secretary”, “cane management”, “County Executive Committee Member”, “Fund”, “guidelines”, “grower”, “industry”, “industrial sugar”, “Institute”, “Jaggery mill”, “licence”, “member”, “mill gate”, “miller”, “outgrower”, “refined sugar”, “retailer”, “stakeholder”, “sugar”, “sugar beet”, “sugarcane”, “sugar catchment area”, “sugarcane growers apex body”, “sugar crop”, “sugarcane manufacturer’s apex body”, “Tribunal”). The Board must regulate its own procedure and the procedure of any of its committees, except as provided in the Second Schedule. The Board may establish committees and may co-opt persons with relevant knowledge and skills to sit on those committees. The Board may delegate any of its powers, functions or duties to a committee or to any member, officer, employee or agent, either generally or in a particular case.

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PRELIMINARY - 1. Short title

This Act may be cited as the Sugar Act, 2024.

Section 1

ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 9. Powers of theBoard

The Board has the power to impose levies on growers and millers to give effect to the Act.

Section 9

ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE - 34. Managing Director of theInstitute

The Institute must have a Managing Director appointed by the Board through a competitive process; the appointee must meet specified academic and experience qualifications and the Board sets terms in consultation with the Public Service Commission.

Section 34

ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 49. Powers of theTribunal

The Tribunal has the power to administer oaths to the parties and witnesses in the proceedings.

Section 49

SAVINGS AND TRANSITIONAL PROVISIONS - 66. Pending proceedings and claims

Pending legal proceedings and claims related to actions and activities the Act covers must be continued or enforced by or against the Board as if they had been by or against the Agriculture and Food Authority.

Section 66

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Showing 66 of 66 provisions

Provision 46Offence 12Commencement 4Amendment 2

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

This Act may be cited as the Sugar Act, 2024.

Section 1. Short title Section This Act may be cited as the Sugar Act, 2024.

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationInterpretation

Provides definitions for terms used in the Act (for example: “agreements”, “Board”, “by-product”, “Cabinet Secretary”, “cane management”, “County Executive Committee Member”, “Fund”, “guidelines”, “grower”, “industry”, “industrial sugar”, “Institute”, “Jaggery mill”, “licence”, “member”, “mill gate”, “miller”, “outgrower”, “refined sugar”, “retailer”, “stakeholder”, “sugar”, “sugar beet”, “sugarcane”, “sugar catchment area”, “sugarcane growers apex body”, “sugar crop”, “sugarcane manufacturer’s apex body”, “Tribunal”).

Section 2. Interpretation Section In this Act, unless the context otherwise requires— “agreements” means agreements specifying the standard provisions governing the rights and obligations of growers, millers, out-growers, transporters and other value chain actors in the sugar industry ; “Board” means the Kenya Sugar Board established under section 3 ; “by-product” means any substance, other than sugar , produced incidentally during the process of manufacturing sugar ; “Cabinet Secretary” means the Cabinet Secretary for the time being responsible for matters relating to agriculture; “cane management” includes the research, land preparation, contracting, agronomy, harvesting, transportation and delivery of cane; “County Executive Committee Member” means the County Executive Member for the time being responsible for matters relating to agriculture in the respective County; “Fund” means the Sugar Development Fund established under section 41 ; “guidelines” means the guidelines for agreements between parties in the sugar industry set out in the regulations; “grower” means a person who produces sugar -cane or any crop in Kenya for the manufacture of sugar ; “industry” means the sugar industry in Kenya and includes the growing of sugar -cane and any other sugar producing crop, the manufacturing, refining, warehousing, marketing, transportation of sugar and disposal of sugar and its by-products; “industrial sugar” means a white crystalline carbohydrate used as a sweetener and preservative sugar , which complies with the specifications set by the body for the time being responsible for setting standards; “Institute” means the Kenya Sugar Research and Training Institute established under section 29 ; “Jaggery mill” means bare minimum technology equipment used to crush sugarcane to produce sugarcane juice which is processed through boiling to produce jaggery; “licence” means a licence issued by the Board to a miller ; “member” means a member of the Board appointed under section 6 ; “mill gate” means a site designed as such by the Board where sugar crops are received, weighed or tested; “miller” means a person licensed to operate a sugar mill or a jaggery, mill in Kenya for the production of sugar including refined sugar and other by-products; “outgrower” means a person who has a sugarcane farm in a catchment area and who has in force a cane supply contract in respect of the sugar -cane grown on such farm and registered by the Board ; “refined sugar” means sugar , which complies with the specifications set by the body for the time responsible for setting standards; “retailer” means any person licensed to carry out retail business in Kenya and includes a supermarket, departmental store, retail shop, wholesale shop, distribution agency or a hawker; “stakeholder” means a person with significant interest in the sugar industry and includes growers, out-growers, millers, transporters and other value chain actors in the industry ; “sugar” means crystalline or liquid sucrose derived from sugar crop in any of its recognized commercial forms, intended for human consumption or other use and includes jaggery, raw, brown, plantation (mill) white and industrial sugar ; “sugar beet” means any plant or part of a plant of the genus Beta or any of its hybrid that is grown for sugar production; “sugarcane” means any plant or part of a plant of the genus saccharum or any of its hybrid; “sugar catchment area” means a geographical area where sugarcane farmers are clustered for purposes of election and cane management ; “sugarcane growers apex body” mean a national organization registered under the Societies Act ( Cap. 108 ) whose membership shall comprise of mill level registered and contracted farmers’ institutions and groups championing the rights under a cane supply agreement and in the catchment areas listed under the First Schedule and gazetted as such by the Cabinet Secretary for the time being responsible for Agriculture; “sugar crop” means a crop grown for the purpose of sugar production including sugarcane and sugar beet ; “sugarcane manufacturer’s apex body” means a national body, composed of sugar and jaggery millers registered under the Societies Act ( Cap. 108 ), with the main objective being to lobby for the interest of the registered millers; “Tribunal” means the Sugar Arbitration Tribunal established under section 46 .

Section 2Verify source

Part II

ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD

§ 10ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 10. Conduct of business and affairs of theBoardProvision

The Board must regulate its own procedure and the procedure of any of its committees, except as provided in the Second Schedule.

Section 10. Conduct of business and affairs of theBoard Section 10(1) The conduct and regulation of the business and affairs of the Board shall be as provided in the Second Schedule. Section 10(2) Except as provided in the Second Schedule, the Board shall regulate its own procedure and the procedure of any of its committees.

Section 10Verify source

§ 11ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 11. Committees of theBoardProvision

The Board may establish committees and may co-opt persons with relevant knowledge and skills to sit on those committees.

Section 11. Committees of theBoard Section 11(1) The Board may establish such committees as it may consider necessary for the efficient performance of its functions and the exercise of its powers under this Act. Section 11(2) The Board may co-opt to sit in the committees established under subsection (1) , such other persons whose knowledge and skills are necessary for the performance of the functions of the Board.

Section 11Verify source

§ 12ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 12. Delegation of powers of theBoardProvision

The Board may delegate any of its powers, functions or duties to a committee or to any member, officer, employee or agent, either generally or in a particular case.

Section 12. Delegation of powers of theBoard Section The Board may, either generally or in any particular case, delegate to any committee of the Board or to any member , officer, employee or agent of the Board , the exercise of any of the powers or the performance of any of the functions or duties of the Board under this Act.

Section 12Verify source

§ 13ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 13. Remuneration ofBoardmembersProvision

The Board must pay its members fees or allowances for expenses as determined by the Cabinet Secretary on the advice of the Salaries and Remuneration Commission.

Section 13. Remuneration ofBoardmembers Section The Board shall pay to its members, such fees or allowances for expenses as determined by the Cabinet Secretary on the advice of the Salaries and Remuneration Commission.

Section 13Verify source

§ 14ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 14. Chief Executive OfficerProvision

The Board must appoint a Chief Executive Officer through a competitive process; the Board sets the CEO's terms; the CEO is ex‑officio without a vote and manages day‑to‑day affairs subject to Board directions.

Section 14. Chief Executive Officer Section 14(1) There shall be a Chief Executive Officer of the Board who shall be appointed through a competitive process by the Board and whose terms and conditions of service shall be determined by the Board in the instrument of appointment or otherwise in writing from time to time. Section 14(2)(a) holds a relevant degree from a university recognized in Kenya; Section 14(2)(b) has at least ten years knowledge and experience from a relevant field; Section 14(2)(c) has at least five years’ experience in a position of senior management; and Section 14(2)(d) meets the provision of Chapter Six of the Constitution. Section 14(3) The Chief Executive Officer shall be an ex-officio member of the Board but shall have no right to vote at any meeting of the Board . Section 14(4) The Chief Executive Officer shall, subject to the directions of the Board , be responsible for the day to day management of the affairs of the Board .

Section 14Verify source

§ 15ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 15. Staff of theBoardProvision

Section 15. Staff of theBoard Section The Board may appoint such officers and other staff as are necessary for the proper discharge of its functions under this Act, upon such terms and conditions of service as the Board may determine.

Section 15Verify source

§ 16ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 16. Protection from personal liabilityProvision

Members, officers, employees and agents of the Board are not personally liable for actions done bona fide in executing the Board's functions, powers or duties.

Section 16. Protection from personal liability Section A member , officer, employee or agent of the Board shall not be held personally liable to any action, claim or demand for a matter or thing done bona fide for the purpose of executing the functions, powers or duties of the Board .

Section 16Verify source

§ 17ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 17. Liability of theBoardfor damagesProvision

The Board must pay compensation to any person for injuries to them, their property or interests caused by the exercise of powers under this Act or by failure (wholly or partially) of any works.

Section 17. Liability of theBoardfor damages Section Section 16 shall not relieve the Board of the liability to pay compensation to any person for any injury to him, his property or to any of his interests caused by the exercise of any power conferred by this Act or by the failure, whether wholly or partially, of any works.

Section 17Verify source

§ 3ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 3. Establishment and incorporation of theBoardProvision

Establishes a board called the Kenya Sugar Board.

Section 3. Establishment and incorporation of theBoard Section 3(1) There is established a board to be known as the Kenya Sugar Board . 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 or lending money; and Section 3(2)(d) doing or performing all such other acts necessary for the proper performance of its functions under this Act which may lawfully be done or performed by a body corporate.

Section 3Verify source

§ 4ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 4. Functions of theBoardProvision

Section 4 lists the functions of the Board, including regulating, developing and promoting the sugar industry; coordinating value chain actors; facilitating equitable access; advising governments; registering and licensing industry participants; enforcing standards; and preparing a strategic plan at least once every five years.

Section 4. Functions of theBoard Section 4(1)(a) regulate, develop and promote the sugar industry ; Section 4(1)(b) co-ordinate the activities of value chain actors within the industry ; and Section 4(1)(c) facilitate equitable access to the benefits and resources of the industry by all interested parties. Section 4(2)(a) participate in the formulation and implementation of overall policies, plans and programs of work for the development of the industry ; Section 4(2)(b) act as an intermediary between the industry and the Government; Section 4(2)(c) establish linkages with other government agencies and research institutions to enhance quality assurance and research and facilitate flow of research findings to the interested parties; Section 4(2)(d) monitor and regulate the domestic market with a view to identify any distortion in the sugar market and advise the Government and interested parties on any corrective measures to be taken; Section 4(2)(e) advise the national and county governments on agricultural levies for purposes of planning, enhancing harmony and promotion of equity in the sugar industry ; Section 4(2)(f) facilitate the sale, import and export of sugar and sugar products; Section 4(2)(g) promote and encourage the use of environmentally friendly technologies in the industry ; Section 4(2)(h) provide advisory services to growers, out- grower institutions and millers; Section 4(2)(i) in collaboration with county governments, implement an equitable mechanism for the pricing of sugar crop and appropriation of proceeds from the disposal of the by-products of sugar production between millers and growers as stipulated in the guidelines ; Section 4(2)(j) collaborate with national and international trade bodies on sugar related matters; Section 4(2)(k) oversee the formulation of standard provisions governing the mutual rights and obligations of growers, millers and other interested parties; Section 4(2)(l) collect, collate and analyze industry statistics and maintain a data base for the industry ; Section 4(2)(m) register and license sugar and jaggery mills, exporters, importers and dealers; Section 4(2)(n) enforce and monitor compliance with standards along the sugar value chain; Section 4(2)(o) promote and advise on strategies for value addition and product diversification in the sugar industry ; Section 4(2)(p) in consultation with the county governments and other stakeholders, formulate a strategic plan for the sugar sub-sector at least once every five years; Section 4(2)(q) in consultation with the county governments, formulate guidelines on an efficient, safe and economical transportation of sugar , sugar crop and disposal of unutilized by-products; Section 4(2)(r) gather and disseminate market information on regional and global supply chain dynamics for the benefit of stakeholders; Section 4(2)(s) establish linkages with various government agencies and research institutions to enhance quality assurance and research; Section 4(2)(t) ensure that there is adequate public participation and consultation with growers in its decision making affecting the sugar industry and its stakeholders; Section 4(2)(u) promote the efficiency and development of the industry through the establishment of appropriate institutional linkages; and Section 4(2)(v) perform such other functions as may be conferred on it by this Act or any other written law.

Section 4Verify source

§ 5ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 5. Functions of county governmentsProvision

County governments issue certificates and inspect sugar crop nurseries in collaboration with the Kenya Sugar Research and Training Institute.

Section 5. Functions of county governments Section issue certificates and inspect sugar crop nurseries in collaboration with the Kenya Sugar Research and Training Institute ;

Section 5Verify source

§ 6ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 6. Composition of theBoardProvision

Sets out the composition of the Board: a President-appointed non-executive chairperson; representatives elected by growers, mills, county governors, and Principal Secretaries (or their nominees); and the Chief Executive as ex‑officio member and secretary; certain members to be appointed by the Cabinet Secretary by Gazette notice; gender, youth and disability representation and rotational election rules; chairperson qualifications.

Section 6. Composition of theBoard Section 6(1)(a) a non-executive chairperson appointed by the President; Section 6(1)(b) five representatives elected by growers from each sugar catchment area as per the First Schedule; Section 6(1)(c) two representatives each elected by private and public owned sugar mills who are knowledgeable in sugar technology and value addition; Section 6(1)(d) the Principal Secretary in the Ministry for the time being responsible for matters relating to agriculture or a representative nominated by the Principal Secretary in writing; Section 6(1)(e) one person nominated by the Council of County Governors who is knowledgeable in extension services and management of farmer institutions; Section 6(1)(f) the Principal Secretary for the time being responsible for National Treasury or a representative nominated by the Principal Secretary in writing; and Section 6(1)(g) the Chief Executive of the Board appointed under section 14 who shall be an ex-officio member and the secretary to the Board. Section 6(2) The members under subsection (1) (b) , (c) and (e) shall be appointed by the Cabinet Secretary by notice in the Gazette . Section 6(3)(a) not more than two thirds of the nominees are of the same gender, and that youth and persons with disabilities are represented in the composition of the Board ; and Section 6(3)(b) the election of members under subsection (1)(b) shall be on rotational basis based on the counties within the catchment area. Section 6(4) A person shall not be appointed as a chairperson of the Board of Directors unless the person holds at least a degree or its equivalent in any discipline from an institution recognized in Kenya and has fifteen years relevant experience in the sugar sector.

Section 6Verify source

§ 7ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 7. Term of appointmentProvision

A person appointed as chairperson or as a Board member under section 6(1)(a),(b),(c) and (e) must serve for a three-year term that may be renewed once upon (re-)election or nomination.

Section 7. Term of appointment Section 7(1) A person appointed as chairperson or a member of the Board under section 6(1) (a) , (b) , (c) and (e) shall serve for a term of three years renewable for one further term upon election or nomination as the case may be. Section 7(2) Members of the Board under section 6(1)(a) , (b) , (c) and (e) shall be appointed at different times so that their respective expiry of terms of office shall fall at different times.

Section 7Verify source

§ 8ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 8. Vacation of officeProvision

Section 8. Vacation of office Section is absent from three consecutive meetings of the Board without notifying the chairperson in writing;

Section 8Verify source

§ 9ESTABLISHMENT, POWERS AND FUNCTIONS OF THE KENYA SUGAR BOARD - 9. Powers of theBoardProvision

The Board has the power to impose levies on growers and millers to give effect to the Act.

Section 9. Powers of theBoard Section impose a levy or levies upon growers and millers for the purposes of giving effect to the provisions of this Act;

Section 9Verify source

Part III

LICENSING AND REGISTRATION

§ 18LICENSING AND REGISTRATION - 18. Registration of millersOffence

Persons may not operate as millers unless registered by the Board with premises specified; the Board must issue registration certificates and satisfy environmental and safety requirements; registered millers must comply with the Act; millers may offer extension services; contravention is an offence punishable by up to five years' imprisonment or a fine up to ten million shillings.

Section 18. Registration of millers Section 18(1) A person shall not conduct the business of a miller unless he or she is registered by the Board and the premises in which the business is conducted is specified in the register in accordance with regulations made under this Act. Section 18(2) The Board shall issue to each miller registered under this section, a certificate of registration specifying the premises at which milling may be carried on by the miller . Section 18(3) No fee shall be charged in respect of registration or certification of registration made or issued under this section. Section 18(4) In issuing certificates of registration under subsection (3) , the Board shall satisfy itself that the premises upon which milling may be carried out meets the environmental standards set by the National Environmental Management Authority and the miller has been issued with a certificate of safety by the relevant county government. Section 18(5) A miller may offer extension or other services to growers. Section 18(6) Every miller registered under this section shall conduct business in accordance with this Act and any regulations made thereunder. Section 18(7) A person who contravenes the provisions of this section commits an offence and shall upon conviction be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million shillings or to both.

Section 18Verify source

§ 19LICENSING AND REGISTRATION - 19. Registration of agrowerto a factoryOffence

Growers must be registered and have a valid supply agreement with a miller (or be exempted by section 20) and the miller’s factory must be within the grower’s sugarcane catchment area; millers must not refuse to accept or collect cane delivered under a cane supply agreement; a miller or grower who contravenes this section commits an offence punishable by a fine of at least one million shillings or three times the market value of the sugar (whichever is greater), or imprisonment for not less than one year, or both.

Section 19. Registration of agrowerto a factory Section 19(1)(a) grower is registered with, and has in force a valid supply agreement with the miller ; Section 19(1)(b) factory of the miller is situated within the grower ’s sugarcane catchment area; or Section 19(1)(c) grower is exempted from the requirements by section 20 . Section 19(2) No miller shall, refuse to accept or collect sugar crop for the manufacture of sugar delivered by a grower in accordance with a cane supply agreement. Section 19(3) A miller or a grower who contravenes the provisions of this section commits an offence and shall be liable, on conviction, to a fine not less than one million shillings or three times the market value of sugar in respect of which the offence is committed, whichever is greater, or to imprisonment for a term not less than one year, or to both such fine and imprisonment.

Section 19Verify source

§ 20LICENSING AND REGISTRATION - 20. Exemption fromsugarcanecatchment areaProvision

A grower who wishes to supply cane outside a sugarcane catchment area is exempt if they meet one of three criteria, and such a grower must notify the Board of that intention; the Cabinet Secretary must prescribe regulations for that notification.

Section 20. Exemption fromsugarcanecatchment area Section 20(1)(a) has no supply agreement with a miller within the sugarcane catchment area that they are situated in; Section 20(1)(b) is not indebted to a miller or an outgrower institution within the sugarcane catchment area; or Section 20(1)(c) has a pre-existing agreement with a miller situated outside the sugarcane catchment area. Section 20(2) The grower who intends to exercise the exemption under this section shall notify the Board of their intention to supply cane outside a sugarcane catchment area. Section 20(3) The Cabinet Secretary shall prescribe regulations for the notification process under subsection (2) .

Section 20Verify source

§ 21LICENSING AND REGISTRATION - 21. Inter-milleragreementsProvision

Applies when the miller’s factory is temporarily broken down.

Section 21. Inter-milleragreements Section the factory of the miller is temporarily broken down;

Section 21Verify source

§ 22LICENSING AND REGISTRATION - 22. Requirement of alicenceto operate millOffence

A person must not operate a sugar mill or jaggery mill unless they hold a current licence issued by the Board on recommendation of the relevant County Government.

Section 22. Requirement of alicenceto operate mill Section 22(1) A person shall not operate a sugar mill or a jaggery mill unless he or she is a holder of a current licence issued by the Board upon recommendation by the relevant County Government for that purpose. Section 22(2) A person who contravenes the provisions of subsection (1) or acts in contravention of the conditions of a licence granted under this Act commits an offence and shall be liable on conviction, to a fine not exceeding three times the domestic value of the sugar in respect of which the offence is committed, or to a fine not exceeding ten million shillings, whichever is the higher, or to imprisonment for a term not exceeding five years, or to both.

Section 22Verify source

§ 23LICENSING AND REGISTRATION - 23. Issue oflicenceandlicencefeesProvision

People must apply to the Board for a licence to operate a sugar mill or jaggery mill using the prescribed form; the Board may prescribe licence fees after consulting the Cabinet Secretary.

Section 23. Issue oflicenceandlicencefees Section 23(1) A person shall apply to the Board for a licence to operate a sugar mill or a jaggery mill in the prescribed form. Section 23(2)(a) it is of the opinion that the applicant is a fit and proper person to hold such a licence ; and Section 23(2)(b) it is satisfied that the applicant has sufficient knowledge, experience and capacity to enable him conduct business or that he has, amongst his staff, a person with such knowledge and experience. Section 23(3) Every licence shall specify the premises upon which the milling of sugar may be carried on. Section 23(4) There shall be payable for the issue of a licence , such fees as the Board , after consultation with the Cabinet Secretary , may prescribe. Section 23(5) The issuance of a licence to an applicant under this section shall not be withheld without reasonable cause.

Section 23Verify source

§ 24LICENSING AND REGISTRATION - 24. Conditions of alicenceProvision

Licences are subject to conditions set by the Board and by regulations; each licence expires on the 30th June next following its date of issue unless it is revoked earlier.

Section 24. Conditions of alicence Section 24(1) A license issued under this Act shall be subject to such conditions as the Board may determine and as prescribed in regulations. Section 24(2) Every license shall, unless earlier revoked, expire on the 30th June next following the date of issue.

Section 24Verify source

§ 25LICENSING AND REGISTRATION - 25. Sugar importOffence

Importing or exporting sugar (including sugar-crop and by-products) requires a Board-issued licence and, for import/export, prior Board permit/approval with specified pre-import evidence; offences attract up to five years imprisonment or a fine up to ten million shillings.

Section 25. Sugar import Section 25(1) A person shall not import or export sugar crop , sugar or sugar by-products without a valid licence issued by the Board in accordance with regulations made under this Act. Section 25(2) A holder of a valid import or export licence shall not import or export sugar crop , sugar or sugar by-products unless they have obtained a pre-import permit or pre-export approval from the Board in accordance with regulations made under this Act. Section 25(3)(a) provide evidence that the sugar they intend to import is not available in the local market; Section 25(3)(b) provide a sample of the sugar to be imported and pre-import verification certificate from the country of origin; and Section 25(3)(c) obtain pre-import approval from the Board . Section 25(4) A person who contravenes this section commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million shillings or to both. Section 25(5) This section shall apply to importation of sugar -cane.

Section 25Verify source

§ 26LICENSING AND REGISTRATION - 26. Safeguard measuresOffence

The Board must ensure sugar imports are subject to prevailing import duties, taxes and other tariffs.

Section 26. Safeguard measures Section 26(1) The Board shall ensure, subject to such regional and international trade agreements to which Kenya is a party, that all sugar imports into the country are subject to all the prevailing import duties, taxes and other tariffs. Section 26(2)(a) sugar shall be imported in the country only when there is sugar deficit and for a specific tonnage; and Section 26(2)(b) importers report to the Board on their imports, sales and stock as may be determined by the Board . Section 26(3) The government shall introduce other safeguard measures as may be necessary to protect the industry from unfair trade practices. Section 26(4) A person who contravenes the provision of this section commits an offence and shall be liable, on conviction, to a fine not exceeding three times the value of the domestic sugar in respect of which the offence is committed, or two million shillings, whichever is higher, or to imprisonment to a term not exceeding ten years, or to both.

Section 26Verify source

§ 27LICENSING AND REGISTRATION - 27. IndustrialsugarProvision

Licensed sugar millers must be licensed by the Board to process industrial sugar; the Board must regulate industrial sugar processing.

Section 27. Industrialsugar Section 27(1) A licenced sugar miller shall be licenced by the Board to carry out the business of processing industrial sugar . Section 27(2) The Board shall regulate the processing of industrial sugar .

Section 27Verify source

§ 28LICENSING AND REGISTRATION - 28. Duties of millers and retailersOffence

Millers and retailers must supply and sell sugar products in packaging that allows traceability; the Cabinet Secretary must make regulations within six months; contravention is an offence punishable by imprisonment up to two years or a fine up to one million shillings or both.

Section 28. Duties of millers and retailers Section 28(1) Every miller shall supply sugar and other sugar products to the domestic market in a package that satisfies the trade principle of traceability. Section 28(2) Every retailer shall sell sugar products in a package that satisfies the trade principle of traceability. Section 28(3) The Cabinet Secretary shall within six months of the enactment of this Act, make regulations for the better implementation of the provisions of this section. Section 28(4) Any person who contravenes the provisions of this section commits and offence and shall, upon conviction, be liable to imprisonment for a term not exceeding two years or a fine not exceeding one million shillings or both.

Section 28Verify source

Part IV

ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE

§ 29ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE - 29. Establishment of the Kenya Sugar Research and TrainingInstituteProvision

Establishes the Kenya Sugar Research and Training Institute and grants it corporate powers including suing and being sued, acquiring and disposing of property, borrowing and lending money, entering contracts, and performing necessary acts for its functions.

Section 29. Establishment of the Kenya Sugar Research and TrainingInstitute Section 29(1) There is hereby established a body to be known as the Kenya Sugar Research and Training Institute . Section 29(2)(a) suing and being sued; Section 29(2)(b) taking, purchasing or otherwise acquiring, holding, charging and disposing of movable and immovable property; Section 29(2)(c) borrowing and lending money; Section 29(2)(d) entering into contracts; and Section 29(2)(e) doing or performing all other things or acts necessary for the proper performance of its functions under this Act, which may lawfully be done or performed by a body corporate.

Section 29Verify source

§ 30ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE - 30. Functions of theInstituteProvision

Section 30 lists functions of the Institute, including promoting, coordinating and regulating sugar research and expediting equitable access to research information, resources, technologies and innovations for the sugar industry.

Section 30. Functions of theInstitute Section 30(1)(a) promote, co-ordinate and regulate research in sugar , sugar crop , sugar by-products, sugar technologies and management practices. Section 30(1)(b) expedite equitable access to research information, resources, sugar technologies and innovations and promote the application of research findings in the development of the sugar industry . Section 30(2)(a) formulate policy and make policy recommendations in respect of sugar research, development and training to the Board in line with the national policy on sugar ; Section 30(2)(b) determine and advise the Board on the resource requirements for sugar research in Kenya both at the national and county level; Section 30(2)(c) regulate, monitor and ensure that all sugar research undertaken by other institutions or persons undertaking sugar research is consistent with the national priorities specified in the relevant policy documents; Section 30(2)(d) formulate or approve medium and long term research plans, strategies and budgets of the Institute ; Section 30(2)(e) provide grants to institutions or persons desirous of carrying out research and training programs which are consistent with the national research priorities and plans of the Institute ; Section 30(2)(f) support and promote the training and capacity building in relation to sugar industry research; Section 30(2)(g) liaise with and ensure the co-ordination of institutions, agencies and persons involved in sugar research; Section 30(2)(h) establish platforms for the purposes of sharing research information, advancing research and transfer of technology and dissemination of information relating to advancements made in sugar industry research; Section 30(2)(i) conduct training in industry best practice and value-addition; Section 30(2)(j) ensure continuance of performance improvement in the field of sugar industry research; Section 30(2)(k) breed and promote sugarcane varieties suited for various agro-ecological areas of Kenya; Section 30(2)(l) conduct research on nutritional requirements of sugar crop in order to provide recommendations on the appropriate inputs; Section 30(2)(m) appraise technologies on land preparation, drainage and water management for economical cane sugar crop production; Section 30(2)(n) study and monitor pests and diseases that affect sugar crop and recommend appropriate control strategies; Section 30(2)(o) develop agronomic packages for sugar crop maintenance and management; Section 30(2)(p) institute socio-economic investigations to improve human resource management and enhance development of the sugar industry as an agribusiness; Section 30(2)(q) test, design and evaluate farm machinery transport and factory equipment for efficient sugar production; Section 30(2)(r) promote transfer of sugar industry technology based on applied research through relevant training and extension mechanism; Section 30(2)(s) foster research on sustainable productivity, environmental issues, human safety at field and factory levels; Section 30(2)(t) collaborate with the Government, the industry , universities and other national and international organizations for the purpose of furthering the Institute 's mission; Section 30(2)(u) charge fees or levies for rendered services and products; Section 30(2)(v) offer modular courses on various aspects of sugar industry technologies, innovations and management practices. Section 30(2)(w) perform such other function as may be conferred on it by this Act or any other written law.

Section 30Verify source

§ 31ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE - 31. Management of theInstituteProvision

Section 31 lists the composition of the Institute's Board and provides that the Cabinet Secretary shall appoint the members mentioned in subsection (1)(a)–(e) by notice in the Gazette; it also sets a qualification for appointment as chairperson (degree and at least ten years’ experience).

Section 31. Management of theInstitute Section 31(1)(a) a chairperson appointed by the Cabinet Secretary through a competitive process in consultation with the Public Service Commission; Section 31(1)(b) one person nominated by sugarcane growers’ apex body; Section 31(1)(c) one person nominated by sugarcane manufacturers apex body; Section 31(1)(d) one person with knowledge of and experience in the operation of the sugar industry nominated by the Council of Governors; Section 31(1)(e) one person with knowledge and experience in agricultural research in sugar technology nominated by the Cabinet Secretary ; Section 31(1)(f) the Principal Secretary for the time being responsible for National Treasury or a representative appointed in writing; Section 31(1)(g) the Principal Secretary for the time being responsible for Agriculture or a representative appointed in writing; Section 31(1)(h) the Director General of the Kenya Agricultural Livestock and Research Organization; and Section 31(1)(i) the Managing Director who shall be an ex-officio member . Section 31(2) The Cabinet Secretary shall appoint the members under subsection (1) (a) , (b) , (c) , (d) and (e) by notice in the Gazette . Section 31(3) A person shall not be appointed as a chairperson of the Board of Directors of the Institute unless the person holds at least a degree or its equivalent in agricultural research or a related field from an institution recognised in Kenya and has at least ten years’ experience in the sugar industry .

Section 31Verify source

§ 32ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE - 32. ApplicationProvision

Sections 8, 9, 10, 11 and 12 apply to the Board of the Institute with necessary modification.

Section 32. Application Section The provisions of sections 8 , 9 , 10 , 11 and 12 shall apply to the Board of the Institute with necessary modification.

Section 32Verify source

§ 33ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE - 33. Funds of theInstituteProvision

Funds of the Institute are monies remitted by the Board from the sugar development levy.

Section 33. Funds of theInstitute Section monies remitted by the Board from the sugar development levy;

Section 33Verify source

§ 34ESTABLISHMENT OF THE KENYA SUGAR RESEARCH AND TRAINING INSTITUTE - 34. Managing Director of theInstituteProvision

Section 34. Managing Director of theInstitute Section 34(1) There shall be a Managing Director of the Institute who shall be appointed through a competitive process by the Board of the Institute and whose terms and conditions of service shall be determined by the Board in consultation with the Public Service Commission in the instrument of appointment or otherwise in writing from time to time. Section 34(2)(a) holds a doctorate degree in agricultural studies, agronomy plant genetics and breeding, soil science or a related field from a university recognized in Kenya; Section 34(2)(b) has at least ten years knowledge and experience from a relevant field; Section 34(2)(c) has at least five years’ experience in a position of senior management; and Section 34(2)(d) meets the provisions of Chapter Six of the Constitution.

Section 34Verify source

Part IX

PROVISIONS ON DELEGATED POWERS

§ 61PROVISIONS ON DELEGATED POWERS - 61. RegulationsCommencement

The Cabinet Secretary must make regulations (in consultation with county governments and the Board) to implement this Act and must make regulations necessary to operationalize the Act within six months from the date of commencement.

Section 61. Regulations Section 61(1) The Cabinet Secretary shall in consultation with county governments and the Board make regulations generally for the better carrying into effect of the provisions of this Act. Section 61(2)(a) the regulation and control of the production, manufacturing, marketing, importation or exportation of sugar and its by-products; Section 61(2)(b) the forms of licences to be issued under this Act, and the form and manner of application for the licences; Section 61(2)(c) the fees which may be charged for any activity relating and incidental to the development, products, marketing and distribution of sugar and its by-products; Section 61(2)(d) the establishment of weigh bridges and collection centres; Section 61(2)(e) standards on grading, sampling and inspection, tests and analysis, specifications, units of measurement, code of practice and packaging, preservation, conservation and transportation of sugar and sugar by-products to ensure safety and proper trading; Section 61(2)(f) production and import of sugar to ensure adequate sugar availability in the country; Section 61(2)(g) guidelines on general industry agreements between growers and millers and between parties in the sugar industry ; Section 61(2)(h) minimum period within which farmers are to be paid for sugar crop delivered and penalties for delayed payments; Section 61(2)(i) cane harvesting and transportation; Section 61(2)(j) the conditions with respect to the delivery, measurement, examination and testing of sugar crop ; Section 61(2)(k) the seizure by an inspector of books, documents and sugar crop which, in the opinion of the inspector, may afford evidence of a contravention of this Act and the doing of such other things as may appear to the inspector to be necessary for ascertaining whether compliance has been made with this Act; Section 61(2)(l) the procedure for election of farmers’ and millers’ representatives to the Board and the pricing committee; and Section 61(2)(m) penalties for non-adherence to sugar industry agreements . Section 61(3) Without prejudice to the generality of this section, the Cabinet Secretary shall make the regulations necessary to operationalize this Act within six months from the date of commencement of this Act.

Section 61Verify source

Part V

APPOINTMENT OF SUGAR INDUSTRY INSPECTORS

§ 35APPOINTMENT OF SUGAR INDUSTRY INSPECTORS - 35. Appointment of crop inspectorsProvision

The Board must appoint qualified sugar industry inspectors and keep a register; the Board may appoint other government agencies as inspectors; the Cabinet Secretary must make regulations.

Section 35. Appointment of crop inspectors Section 35(1) The Board shall appoint qualified sugar industry inspectors for purposes of undertaking its functions under this Act or any other written law. Section 35(2)(a) a crop inspector; Section 35(2)(b) a factory inspector; Section 35(2)(c) a warehouse and transportation inspector; and Section 35(2)(d) any other inspector that the Board may consider necessary. Section 35(3) A person shall not be appointed as a sugar industry inspector unless such person holds an academic or professional qualification prescribed by the Board . Section 35(4) The Board shall maintain a register of persons qualified to be appointed as sugar industry inspectors. Section 35(5) A person shall not be appointed as a sugar industry inspector unless such person is registered by the Board . Section 35(6) The Board may appoint any other government agency as a sugar industry inspector for purposes of this Act. Section 35(7) The Cabinet Secretary shall make Regulations for the better implementation of the provisions of this section.

Section 35Verify source

§ 36APPOINTMENT OF SUGAR INDUSTRY INSPECTORS - 36. Entry and inspectionProvision

enter any land or buildings occupied by the holder of a licence issued under this Act, or a person registered under this Act;

Section 36. Entry and inspection Section enter any land or buildings occupied by the holder of a licence issued under this Act, or a person registered under this Act;

Section 36Verify source

§ 37APPOINTMENT OF SUGAR INDUSTRY INSPECTORS - 37. Powers of entryOffence

Inspectors have powers to enter land, premises or vehicles and to take actions like searches, seizure, demanding licences and other authorized acts; owners or occupiers must give reasonable assistance to inspectors who enter; refusing or delaying to comply with that assistance is an offence.

Section 37. Powers of entry Section 37(1)(a) at any reasonable time, enter upon any land, premises or vehicle; Section 37(1)(b) take such persons and things as the inspector considers necessary; Section 37(1)(c) perform the functions or exercise the powers conferred by this Act or any other written law; Section 37(1)(d) make enquiries or carry out a search to ascertain if this Act is being complied with; Section 37(1)(e) demand the production by a licence holder of the licence for examination; Section 37(1)(f) seize and remove any article or thing in respect of which the inspector has reasonable grounds for believing that an offence under this Act is being or has been committed; or Section 37(1)(g) do any other thing authorized under this Act. Section 37(2) The owner or occupier of any land or a person in control of any premise or a vehicle which an inspector has entered under subsection (1) shall render such reasonable assistance as may be required by the inspector. Section 37(3) A person who refuses, unreasonably delays or fails to comply with a requirement under subsection (2) commits an offence.

Section 37Verify source

§ 38APPOINTMENT OF SUGAR INDUSTRY INSPECTORS - 38. Obstruction of inspectorsOffence

A person must not prevent, hinder or obstruct an inspector carrying out functions, duties or exercising powers under this Act.

Section 38. Obstruction of inspectors Section 38(1) A person shall not prevent, hinder or obstruct an inspector in performance of the functions, and duties or exercise of powers conferred by this Act. Section 38(2) A person who contravenes subsection (1) commits an offence and shall be liable, on conviction, to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding two years, or both.

Section 38Verify source

Part VI

FINANCIAL PROVISIONS

§ 39FINANCIAL PROVISIONS - 39. Funds of theBoardProvision

The Board's funds are such monies as may be appropriated by the National Assembly for the purposes of the Board.

Section 39. Funds of theBoard Section such monies as may be appropriated by the National Assembly for the purposes of the Board ;

Section 39Verify source

§ 40FINANCIAL PROVISIONS - 40. Sugar Development LevyProvision

The Cabinet Secretary, in consultation with the Board and by order in the gazette, shall impose a Sugar Development Levy (up to 4% of value on domestic sugar and 4% of CIF value on imported sugar); proceeds are allocated by percentage to specified uses and unpaid amounts incur a 3% monthly addition and are recoverable by the Board.

Section 40. Sugar Development Levy Section 40(1) The Cabinet Secretary shall in consultation with the Board , by order in the gazette , impose a levy on domestic sugar not exceeding four per centum of the value and a four per centum of CIF value on imported sugar to be known as the Sugar Development Levy. Section 40(2) The levy shall be payable at such rate as may be specified in the order. Section 40(3) An order under this section may contain provisions as to the time at which any amount payable by way of the levy shall become due. Section 40(4) All moneys received in respect of the levy shall be paid to the Board and if not paid on or before the date prescribed by the order, the amount due and any sum payable under subsection (5) shall be a civil debt recoverable summarily by the Board. Section 40(5) If a person fails to pay any amount payable by him or her by way of the levy on or before the date prescribed by the order, a sum equal to three per centum of the amount shall be added to the amount due for each month or part thereof during which the amount due remains unpaid. Section 40(6)(a) fifteen per centum shall be applied for factory development and rehabilitation; Section 40(6)(b) fifteen per centum shall be applied for research and training allocated to the Kenya Sugar Research and Training Institute ; Section 40(6)(c) forty per centum shall be applied for cane development and productivity enhancement; Section 40(6)(d) fifteen per centum shall be allocated to sugarcane producing regions on pro-rata basis based on production capacity for infrastructural development and maintenance and shall be managed by the Board ; Section 40(6)(e) ten per centum shall be applied for the administration of the Board ; and Section 40(6)(f) five per centum shall be applied for the furtherance and exercise of the functions of sugarcane farmers organisations.

Section 40Verify source

§ 41FINANCIAL PROVISIONS - 41. Sugar DevelopmentFundProvision

Establishes the Sugar Development Fund and provides that the Fund shall be administered by the Board; lists the Fund's sources of money including a levy, donor funds, monies from the National Assembly and county assemblies, and other sources approved by the Board.

Section 41. Sugar DevelopmentFund Section 41(1) There is established a Fund to be known as the Sugar Development Fund which shall be administered by the Board . Section 41(2)(a) the Sugar Development levy; Section 41(2)(b) any funds provided by bilateral or multilateral donors for the purposes of the Fund ; Section 41(2)(c) any moneys provided by the National Assembly for the purposes of the Fund ; Section 41(2)(d) any moneys provided by a county assembly for the purposes of the Fund ; and Section 41(2)(e) moneys from any other source approved by the Board .

Section 41Verify source

§ 42FINANCIAL PROVISIONS - 42. Financial yearProvision

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

Section 42. Financial year Section The financial year of the Board shall be the period of twelve months ending on the thirtieth of June in every year.

Section 42Verify source

§ 43FINANCIAL PROVISIONS - 43. Annual estimatesCommencement

The Board must prepare estimates of its revenue and expenditure before each financial year and must approve the annual estimates before that financial year; the Board may create reserve funds for future or contingent liabilities.

Section 43. Annual estimates Section 43(1) Before the commencement of each financial year, the Board shall cause to be prepared estimates of revenue and expenditure of the Board for that financial year. Section 43(2)(a) the payment of salaries, allowances and other charges in respect of the staff of the Board ; Section 43(2)(b) the payment of pensions, gratuities and other charges in respect of retirement benefits which are payable out of the funds of the Board ; Section 43(2)(c) the proper maintenance of the buildings and grounds of the Board ; Section 43(2)(d) the acquisition, maintenance, repair and replacement of the equipment and other movable property of the Board ; and Section 43(2)(e) the creation of such reserve funds to meet future or contingent liabilities in respect of retirement benefits, insurance or replacement of buildings or equipment, or in respect of such other matters as the Board may deem appropriate. Section 43(3) The annual estimates shall be approved by the Board before the commencement of the financial year to which they relate and once approved, the sum provided in the estimates shall not be increased without the prior consent of the Board .

Section 43Verify source

§ 44FINANCIAL PROVISIONS - 44. Accounts and auditProvision

Section 44 requires the Board to keep proper accounting records; the Board's accounts must be audited by the Auditor-General or an auditor appointed with the Auditor-General's written approval; the Auditor-General has inspection, direction and reporting powers and certain reporting and fee arrangements are specified.

Section 44. Accounts and audit Section 44(1) The Board shall cause to be kept all proper books and records of accounts of the income, expenditure, assets and liabilities of the Board . Section 44(2)(a) a statement of the income and expenditure of the Board during that year; and Section 44(2)(b) a statement of the assets and liabilities of the Board on the last day of that year. Section 44(3) The accounts of the Board shall be audited by the Auditor-General or by an auditor appointed by the Board with the written approval of the Auditor-General. Section 44(4) The appointment of an auditor under subsection (3) shall not be terminated by the Board without the prior written consent of the Auditor-General. Section 44(5) The Auditor-General may give general or specific directions to an auditor appointed under subsection (3) and the auditor shall comply with such directions. Section 44(6) An auditor appointed under subsection (3) shall report directly to the Auditor-General on any matter relating to the directions given under subsection (5) . Section 44(7) Within a period of six months after the end of each financial year, the Auditor-General shall report on the examination and audit of the accounts of the Board to the Cabinet Secretary and where an auditor has been appointed under subsection (3) , such auditor shall transmit a copy of the report to the Auditor General. Section 44(8) The fee payable to an auditor, appointed under subsection (3) shall be determined and paid by the Board. Section 44(9) Nothing in this Act shall be construed to prohibit the Auditor General from carrying out an inspection of the records and accounts of the Board whenever it appears to him desirable. Section 44(10) Notwithstanding anything in this Act, the Auditor-General may transmit to the Cabinet Secretary a special report on any matters incidental to his power under this Act and section 50(1) of the Public Audit Act (Cap. 412B) shall, with necessary modifications, apply to any report made under this section.

Section 44Verify source

§ 45FINANCIAL PROVISIONS - 45. Annual reportProvision

The Board must prepare and submit an annual report within three months after the end of each financial year; the Cabinet Secretary must lay that report before the National Assembly and Senate within three months of their next sitting after receipt.

Section 45. Annual report Section 45(1) The Board shall, within three months after the end of each financial year, prepare and submit to the Cabinet Secretary a report of the operations of the Board for the immediate preceding year. Section 45(2) The Cabinet Secretary shall lay the report submitted to him under subsection (1) before the National Assembly and Senate within three months of the day the National Assembly and the Senate next sits after the receipt of the report.

Section 45Verify source

Part VII

ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL

§ 46ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 46. Establishment of the Sugar ArbitrationTribunalProvision

Establishes the Sugar Arbitration Tribunal, appointed by the Chief Justice, with a chairperson qualified for High Court judgeship and four expert members appointed through competitive recruitment; members serve part-time and hold office for periods not exceeding three years and may be re-appointed once.

Section 46. Establishment of the Sugar ArbitrationTribunal Section 46(1) There is hereby established a Tribunal to be known as the Sugar Arbitration Tribunal . Section 46(2)(a) a chairperson appointed by the Chief Justice who shall be a person qualified to be appointed as a judge of the High Court; and Section 46(2)(b) four other members, being persons with expert knowledge in economics, trade, law, agriculture, research and engineering with at least five years’ experience in arbitration, all of who shall be appointed by the Chief Justice through a competitive recruitment process. Section 46(3) The Chairperson and members of the Tribunal shall serve on a part-time basis. Section 46(4) The members of the Tribunal appointed under subsection (2) shall hold office for such period, not exceeding three years, on such terms and conditions as shall be specified in the instrument of appointment but shall be eligible for re-appointment for one further term of a period not exceeding three years. Section 46(5) A person shall not be qualified to be appointed as a member of the Tribunal if that person is a public servant or takes an active part in the activities of a political party. Section 46(6) A person shall not qualify for appointment under this section unless the person has met the requirement of Chapter Six of the Constitution. Section 46(7) The provisions set out in the Third Schedule shall have effect with respect to the meetings and procedure of the Tribunal . Section 46(8) Except as provided in the Third Schedule, the Tribunal shall regulate its own procedure as to the conduct of meetings.

Section 46Verify source

§ 47ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 47. Jurisdiction of theTribunalProvision

The Tribunal has jurisdiction over specified disputes concerning sugar industry participants and issues listed in Section 47(1)(a)–(f).

Section 47. Jurisdiction of theTribunal Section 47(1)(a) disputes between sugar crop farmers; Section 47(1)(b) out grower institutions; Section 47(1)(b)(i) out grower institutions; Section 47(1)(b)(ii) millers; Section 47(1)(b)(iii) other interested parties; Section 47(1)(c) disputes relating to cane pricing; Section 47(1)(d) disputes relating to contract farming; Section 47(1)(e) disputes between millers; and Section 47(1)(f) disputes between any other interested parties.

Section 47Verify source

§ 48ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 48. Determination of disputesProvision

The Tribunal must promptly decide disputes and must decide any dispute within three months of it being lodged; it must apply the Evidence Act and Civil Procedure Act rules (with necessary modifications) and avoid undue procedural technicalities.

Section 48. Determination of disputes Section 48(1) The Tribunal shall expeditiously determine any dispute before, but in any case, shall determine a dispute within a period of three months from the date the dispute is lodged. Section 48(2) An Appeal shall lie from the decision of the Tribunal to the High Court within thirty days on points of law and facts and on points of law to the Court of Appeal. Section 48(3) A decision of the Tribunal shall be enforced in the same manner as a decision of a Magistrates Court. Section 48(4) The Tribunal shall apply the rules of evidence and procedure under the Evidence Act ( Cap. 80 ) and the Civil Procedure Act ( Cap. 21 ), with the necessary modifications, while ensuring that its proceedings do not give undue regard to procedural technicalities.

Section 48Verify source

§ 49ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 49. Powers of theTribunalProvision

The Tribunal has the power to administer oaths to the parties and witnesses in the proceedings.

Section 49. Powers of theTribunal Section to administer oaths to the parties and witnesses to the proceedings;

Section 49Verify source

§ 50ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 50. Removal of members of theTribunalProvision

Members of the Tribunal are removed if they become an undischarged bankrupt.

Section 50. Removal of members of theTribunal Section becomes an undischarged bankrupt;

Section 50Verify source

§ 51ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 51. VacancyProvision

If a Tribunal member's office becomes vacant, the Chief Justice may appoint another person and that member must serve for his or her full term.

Section 51. Vacancy Section Where the office of any member becomes vacant, whether by death or otherwise, the Chief Justice may appoint another person to be a member of the Tribunal and such member shall serve for his or her full term.

Section 51Verify source

§ 52ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 52. Secretary of theTribunalProvision

The Chief Justice must appoint a Secretary and any other staff of the Tribunal necessary for its proper functioning.

Section 52. Secretary of theTribunal Section The Chief Justice shall appoint a Secretary and such other staff of the Tribunal necessary for the proper functioning of the Tribunal .

Section 52Verify source

§ 53ESTABLISHMENT OF THE SUGAR ARBITRATION TRIBUNAL - 53. Remuneration of members and staff of theTribunalProvision

Section 53 provides that the Tribunal’s staff remuneration and expenses are to be paid from monies allocated by the National Assembly to the Judiciary Fund, and that the Chairperson and members are to be paid allowances and reimbursed expenses as determined by the Judicial Service Commission on the recommendation of the Salaries and Remuneration Commission.

Section 53. Remuneration of members and staff of theTribunal Section 53(1) The remuneration of the staff of the Tribunal and the expenses of the Tribunal shall be paid out of monies allocated by the National Assembly to the Judiciary Fund . Section 53(2) The Chairperson and members of the Tribunal shall be paid such allowances and be reimbursed such expenses as shall be determined by the Judicial Service Commission on the recommendation of the Salaries and Remuneration Commission.

Section 53Verify source

Part VIII

MISCELLANEOUS PROVISIONS

§ 54MISCELLANEOUS PROVISIONS - 54. Annual general meetingProvision

The Board must convene an annual general meeting at least once every year of millers and growers; it may call special meetings; and, subject to the Act and regulations, it may make rules governing conduct and procedure at those meetings.

Section 54. Annual general meeting Section 54(1) The Board shall, at least once in every year, convene an annual general meeting of representatives of millers and growers for the purposes of considering the annual report and accounts of the Board and for the purposes of transacting such other business of which notice shall be given. Section 54(2) The Board may convene special meetings in addition to the meetings mentioned in subsection (1) for such purposes and at such times as it may deem fit. Section 54(3) Subject to this Act and any regulations made thereunder, the Board may make rules for the regulation of the conduct of business and procedure at the general meetings convened pursuant to this section.

Section 54Verify source

§ 55MISCELLANEOUS PROVISIONS - 55. Quality, safety and health control measuresProvision

Safety and quality standards are set by the body for the time being responsible for setting standards.

Section 55. Quality, safety and health control measures Section safety and quality standards as set by the body for the time being responsible for setting standards;

Section 55Verify source

§ 56MISCELLANEOUS PROVISIONS - 56. Inspection for quality and safetyOffence

Section 56. Inspection for quality and safety Section 56(1) The Board shall carry out physical inspection of premises licenced under section 23 quarterly to ensure that safety and health standards are followed. Section 56(2)(a) not discharge any affluent, dangerous materials, substances, oil or oil mixtures into land, water, air, or aquatic environment; Section 56(2)(b) not release smoke or any air pollutant to the air that pollutes the environment; Section 56(2)(c) manage any hazardous waste and materials; Section 56(2)(d) not import any hazardous waste; Section 56(2)(e) not mislabel any sugar or jaggery; and Section 56(2)(f) not aid or abet illegal trafficking of sugar or related substances. Section 56(3) When an offence under this section, is committed by a body corporate, the body corporate and every director or officer of the body corporate who ought to have had knowledge of the commission of the offence and who did not exercise due diligence, efficiency and economy to ensure compliance with this Act, commits an offence and shall be liable upon conviction to a fine not exceeding five million shillings or to an imprisonment for a term not exceeding five years. Section 56(4) In addition to the sentence under subsection (3) , the Court may order for the revocation of a licence.

Section 56Verify source

§ 57MISCELLANEOUS PROVISIONS - 57. Offences and penaltiesOffence

The Board may direct organisations or persons in the industry to produce documents or submit returns; subsection (2) lists offences including failing to comply, providing false or misleading information, obstructing an officer, and diverting transit sugar into the domestic market; subsection (3) sets penalties for diversion including a fine up to three times domestic value or two million shillings or imprisonment up to ten years or both.

Section 57. Offences and penalties Section 57(1) The Board may direct any organization or person in the industry to produce any document or information, or submit any returns which it reasonably considers necessary for the proper performance of its functions under this Act. Section 57(2)(a) fails to comply with any direction given by the Board under this Act; or Section 57(2)(b) furnishes to the Board any information or produces any document which is false or misleading in any material particular; or Section 57(2)(c) obstructs an officer of the Board in the performance of his functions under this Act; or Section 57(2)(d) diverts or abets the diversion of transit sugar into the domestic market, Section 57(3) A person convicted of an offence under paragraph (d) of subsection (2) shall be liable to a fine not exceeding three times the domestic value of the sugar in respect of which the offence is committed, or two million shillings, whichever is the higher, or to imprisonment for a term not exceeding ten years, or to both.

Section 57Verify source

§ 58MISCELLANEOUS PROVISIONS - 58. SugarindustryagreementsOffence

Creates sugar industry agreements covering designated sugar-producing crops, a grower’s right to cultivate sugar crops on their land, sugar‑cane farming contracts setting terms for growers and millers, a pricing formula, Board functions, powers for the Board to enforce penalties, and enforcement of levies to enable the Board to meet obligations.

Section 58. Sugarindustryagreements Section 58(1) There shall be, for the purposes of this Act, agreements to be known as the sugar industry agreements negotiated between growers and millers, growers and out- grower institutions, and millers and out- grower institutions. Section 58(2)(a) the designation of any agricultural crop from which it is possible to manufacture sugar which is subject to the agreement; Section 58(2)(b) the right of a grower to grow a sugar crop on their land; Section 58(2)(c) a sugar -cane farming contract providing for the terms and conditions of the production of sugarcane and sugar and prescribing the rights and obligations of growers and millers; Section 58(2)(d) a formula for determining the price to be paid by millers to growers for sugarcane or any other designated agricultural produce in consultation with stakeholders, which may include any factor related to the sale or other disposal of sugar industry products; Section 58(2)(e) the functions to be executed by the Board in the execution of the agreement; Section 58(2)(f) the granting of powers to the Board to enforce penalties prescribed in the agreement for the contravention of, or failure to comply with any term of the agreement; and Section 58(2)(g) the enforcement of levies upon growers and millers for the purpose of enabling the Board to fulfill any obligation incurred by it in accordance with its constitution.

Section 58Verify source

§ 59MISCELLANEOUS PROVISIONS - 59. General penaltyOffence

Contravening any provision of the Act is an offence. First conviction: fine of not less than one million shillings or three times the market value of the sugar concerned, whichever is greater, or imprisonment for a term not less than one year, or both. Second or subsequent conviction: fine of not less than three million shillings or three times the market value of the sugar concerned, whichever is greater, or imprisonment for a term not less than two years, or both.

Section 59. General penalty Section 59(1) A person who contravenes any of the provisions of this Act commits an offence. Section 59(2)(a) in the case of a first conviction, to a fine not less than one million shillings or three times the market value of the sugar in respect of which the offence is committed, whichever is greater, or imprisonment for a term not less than one year, or to both such fine and imprisonment; and Section 59(2)(b) in the case of a second or subsequent conviction, to a fine not less than three million shillings or three time the market value of the sugar in respect to which the offence is committed, whichever is greater, or to imprisonment for a term not less than two years, or to both such fine and imprisonment.

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§ 60MISCELLANEOUS PROVISIONS - 60. Sugarcane pricing committeeProvision

Creates a Sugarcane Pricing Committee, lists its membership, assigns functions related to setting and reviewing sugarcane pricing, requires the Board to provide secretarial services, and allows the Committee to undertake an early pricing review with prior Board approval.

Section 60. Sugarcane pricing committee Section 60(1) There shall be a Sugarcane Pricing Committee (hereinafter referred to as “the committee”). Section 60(2)(a) a nominee of the Board ; Section 60(2)(b) one person nominated by the sugar manufacturers’ apex body; Section 60(2)(c) two persons nominated by the sugar growers’ apex body; Section 60(2)(d) the Principal Secretary responsible for finance or a representative appointed in writing; Section 60(2)(e) the Principal Secretary responsible for matters related to Agriculture or a representative appointed in writing; Section 60(2)(f) two representatives from county government nominated by the Council of Governors; and Section 60(2)(g) a nominee of the Sugar Research and Training Institute . Section 60(3)(a) review sugarcane prices in consultation with the Sugar Research and Training Institute ; Section 60(3)(b) provide a mechanism that remunerates farmers for other products delivered from the processing of the cane; Section 60(3)(c) ensure adherence to the negotiated cane processing formula; Section 60(3)(d) transition to payment based on quality; and Section 60(3)(e) enforce contracts between farmers and millers. Section 60(4)(a) pricing mechanism for all other cane related charges paid by the farmer; Section 60(4)(b) an index that takes into consideration delayed harvesting; Section 60(4)(c) transportation cost per tonne per kilometre of sugarcane ; Section 60(4)(d) inflation and adjustment cost of production; and Section 60(4)(e) formula as provided by the Sugar Research and Training Institute . Section 60(5) The Board shall offer secretarial services to the Committee. Section 60(6) The sugarcane prices set by the Committee under subsection (3) shall be reviewed after three months provided that the Committee may, with prior approval of the Board, undertake an early review of the sugarcane pricing.

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Part X

CONSEQUENTIAL AMENDMENTS

§ 62CONSEQUENTIAL AMENDMENTS - 62. Amendment of the First Schedule to (Cap. 317)Amendment

The Agriculture and Food Authority Act (Cap. 317) is amended in the First Schedule by deleting paragraph 1(ii).

Section 62. Amendment of the First Schedule to (Cap. 317) Section The Agriculture and Food Authority Act ( Cap. 317 ) is amended in the First Schedule by deleting paragraph 1(ii).

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§ 63CONSEQUENTIAL AMENDMENTS - 63. Amendment of the First Schedule to (Cap. 318)Amendment

Part I of the First Schedule to The Crops Act (Cap. 318) is amended by deleting the words “Sugarcane………. Saccharum spp”.

Section 63. Amendment of the First Schedule to (Cap. 318) Section The Crops Act ( Cap. 318 ) is amended in Part I of the First Schedule by deleting the words “Sugarcane………. Saccharum spp”.

Section 63Verify source

Part XI

SAVINGS AND TRANSITIONAL PROVISIONS

§ 64SAVINGS AND TRANSITIONAL PROVISIONS - 64. Transfer of StaffCommencement

Upon commencement, certain former Sugar Board and current Sugar Directorate staff (not under notice of dismissal or resignation) become staff of the Board on their current or improved terms and conditions, subject to subsection (2).

Section 64. Transfer of Staff Section 64(1) Upon the commencement of this Act, a person who was a member of the staff of the former Sugar Board of Kenya before the commencement of the Agriculture and Food Authority Act ( Cap. 317 ) and current staff of the Sugar Directorate not being under any notice of dismissal or resignation shall upon commencement of this Act and subject to subsection (2) become a staff of the Board on their current or improved terms and conditions of service. Section 64(2) The pensions of staff under the provident fund of Agriculture and Food Authority-Sugar Directorate shall on the commencement of the Act vest in the Board .

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§ 65SAVINGS AND TRANSITIONAL PROVISIONS - 65. Transfer of assets and liabilitiesCommencement

All property previously held by the Government for the use of the Sugar Directorate vests in the Board on the date of commencement, except property the Cabinet Secretary specifies in writing, and subject to existing interests and liabilities.

Section 65. Transfer of assets and liabilities Section All property, except such property as the Cabinet Secretary may specify in writing, which, immediately before the commencement of this Act, was vested in the Government for the use of the Sugar Directorate of the Agriculture and Food Authority, shall, on the date of commencement of this Act, vest in the Board subject to all interests, liabilities, charges, obligations and trusts affecting that property.

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§ 66SAVINGS AND TRANSITIONAL PROVISIONS - 66. Pending proceedings and claimsProvision

Section 66. Pending proceedings and claims Section All legal proceedings and claims pending in respect of actions and activities to which this Act apply shall be continued or enforced by or against the Board in the same manner as they would have been continued or enforced by or against the Agriculture and Food Authority had this Act not been enacted.

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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

Board in the performance of his functions under this Act
Section 57
Board under this Act
Section 12
Board whenever it appears to him desirable. Section 44(10) Notwithstanding anything in this Act
Section 44
First Schedule to (Cap. 317) The Agriculture and Food Authority Act
Section 62
First Schedule to (Cap. 318) Part I of the First Schedule to The Crops Act
Section 63

N–S

1 instrument

Staff Section 64(1) Upon the commencement of this Act
Section 64

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