Dairy Industry Act

Section 1. Short title and commencement Section 1(1) This Act may be cited as the Dairy Industry Act. Section 1(2) Spent.

Section 2. Application Section This Act shall not be applied to any part of the Non-scheduled Areas, except in respect of dairy produce produced in those Areas and sold or intended for sale in the Scheduled Areas or in any municipality or township, unless the Central Agricultural Board has been consulted. [Act No. 10 of 1969 , Sch.]

Section 3. Interpretation Section In this Act, except where the context otherwise requires— "Board" means the Kenya Dairy Board established by section 4 ; "butterfat" means the natural and complete fat which is present in milk; "Central Agricultural Board" means the Board established by section 35 of the Agriculture Act (Repealed); "consumer" means a person who buys dairy produce for his own use and not for resale; "dairy produce" means milk, cream, butter, ghee, cheese and any other product or by-product of milk; "distributor" means a person who buys dairy produce for the purpose of resale; "ghee" means pure clarified butterfat containing no preservative or colouring matter and no fats or oils other than butterfat; "milk" means milk from a cow; "Non-Scheduled Areas" means all areas of land in Kenya not for the time being comprised in the Scheduled Areas; "package" includes cask, keg, crate, can, box, case, wrapper, tin, bottle, carton and every other receptacle or covering used for the packing of dairy produce; "producer" means a person who produces, processes, manufactures, prepares or treats dairy produce for sale; "registered producer" means a person registered under Part V; "r...

Section 4. Establishment of the Board Section 4(1) There is hereby established a Board to be known as the Kenya Dairy Board, which shall be a body corporate with perpetual succession and a common seal, with power to sue and be sued and to purchase, hold, manage and dispose of land and other property, and to enter into such contracts as it may consider necessary or expedient. Section 4(2) Except where the Board acts as agent for the Cabinet Secretary under any provision of this Act the Board shall not be regarded as the servant or agent of the Government or as enjoying any status, immunity or privilege of the Government, and no property of the Board shall be regarded as property of, or held on behalf of, the Government.

Section 5. Membership of the Board Section 5(1) The Board shall consist of twelve members appointed by the Cabinet Secretary. Section 5(2)(a) a Chairperson; Section 5(2)(b) five members, being producers selected for appointment from a panel of not less than ten names submitted to the Cabinet Secretary by the Central Agricultural Board; Section 5(2)(c) three members, being selected for appointment from a panel of not less than seven names submitted to the Cabinet Secretary by the Central Agricultural Board; Section 5(2)(d) two members, being selected for appointment, after consultation by the Cabinet Secretary with any person or organisation which the Cabinet Secretary thinks fit to consult; and Section 5(2)(e) one member, being selected for appointment from a panel of not less than three names submitted to the Cabinet Secretary by the Kenya members of the Association of Municipalities of East Africa or of any body formed to take over the functions of that Association. Section 5(3) The Board shall once in every year elect from amongst its members a vice-Chairperson who shall hold office in the ensuing year. Section 5(4) An appointment made under this section shall be notified in the...

Section 6. Duration of office of members of the Board Section 6(1)(i) not more than two members appointed by virtue of section 5 (2)(b); Section 6(1)(ii) not more than one member appointed by virtue of section 5 (2)(c); and Section 6(1)(iii) not more than one member appointed by virtue of section 5 (2)(d), Section 6(2)(a) if he delivers to the Cabinet Secretary a written resignation of his office; Section 6(2)(b) if he is adjudged bankrupt or enters into a composition or scheme of arrangement with his creditors; Section 6(2)(c) if the Board declares by resolution that he has been absent from three consecutive meetings of the Board without the leave of the Board; Section 6(2)(d) if he undergoes any term of imprisonment on conviction for an offence; Section 6(2)(e) if he accepts office as a member of the staff of the Board; Section 6(2)(f) if the Cabinet Secretary removes him from office on being satisfied that he is incapacitated by physical or mental illness or is otherwise unable or unfit to discharge the functions of a member or is unsuitable to continue as a member. Section 6(3) A member of the Board who retires or resigns shall be eligible for reappointment. Section 6(4) Sectio...

Section 7. Remuneration and expenses of members of the Board Section 7(1) The remuneration of the members of the Board shall be determined by the Cabinet Secretary, who shall take into consideration any recommendations made to him under section 21 (3). Section 7(2) In addition to remuneration the Board may pay travelling and other expenses which may reasonably have been incurred by the members by reason of their office. Section 7(3) No public officer shall be entitled to remuneration or expenses under this section.

Section 8. Officers and staff Section The Board may employ an executive officer, a secretary and such other officers, servants and agents as may be necessary or desirable for the efficient conduct and operation of the Board.

Section 9. Pensions and staff funds Section The Board may establish and make contributions to a pension or superannuation fund and a medical fund, for the benefit of its officers and other employees, and may require those officers and employees to contribute thereto.

Section 10. Presiding officer at meetings Section The Chairperson, or in his absence the vice-Chairperson, or in the absence of both a member elected by the Board, shall preside at all meetings of the Board, and the member presiding at a meeting shall with respect to that meeting or to any business transacted thereat have all the powers of the Chairperson of the Board under this Act.

Section 11. Decisions of the Board Section 11(1) The member presiding at a meeting shall have a casting as well as a deliberative vote, and subject thereto the decision of the majority of the members present and voting at any meeting of the Board shall be deemed to be the decision of the Board. Section 11(2) The quorum of the Board shall be six, exclusive of the Chairperson or member presiding. Section 11(3) Subject to the provisions of subsection (2), no act, decision or proceeding of the Board shall be questioned on account of a vacancy in the membership thereof, or on account of the appointment of a member of the Board being defective.

Section 12. Common seal Section The common seal of the Board shall be authenticated by the signature of the Chairperson of the Board or of some other member authorised by the Board to act in that behalf, together with the signature of the executive officer to the Board or the secretary to the Board, or some other person authorized by the Board to act in that behalf, and the seal shall be officially and judicially noted.

Section 13. Execution of documents, etc., not under seal Section All documents other than those required by law to be under seal made by, and all decisions of, the Board may be signified under the hand of the Chairperson, the executive officer or the secretary, or of any member of the Board authorised in that behalf.

Section 14. Meetings of the Board Section 14(1) The Board shall hold ordinary meetings as and when necessary, but not less than once in every three months. Section 14(2) Ordinary meetings of the Board shall be convened by the Chairperson at such times and at such places as he may deem fit. Section 14(3) The Chairperson, or in his absence the vice-Chairperson, shall convene a special meeting of the Board at any time upon receipt of a requisition signed by not less than three members calling upon him so to do, and the special meeting shall be held not later than twenty-one days after the receipt of the requisition.

Section 15. Consumers’ Committee and other committees of the Board Section 15(1) The Board shall appoint a committee to represent the interests of consumers (hereinafter referred to as the Consumers’ Committee), and may appoint such other committees as it may deem necessary, to examine and report to it on any matter whatsoever arising out of or connected with any of its functions or powers under this Act. Section 15(2) A committee appointed under this section shall consist of persons, whether members, officers or servants of the Board or not, whose assistance or advice the Board may desire. Section 15(3) A committee appointed under this section may appoint one or more subcommittees. Section 15(4) The Board may pay to persons, not being members, officers or servants of the Board, who are members of a committee or subcommittee appointed under this section, such travelling and other expenses as may reasonably have been incurred by them by reason of membership.

Section 16. Board to regulate its own conduct Section The Board may from time to time make standing orders providing for the regulation of its meetings, the conduct of its business and the duties of its officers and other employees.

Section 17. Functions of the Board Section 17(1)(a) to organise, regulate and develop the efficient production, marketing, distribution and supply of dairy produce, having regard to the various types of dairy produce required by different classes of consumers; Section 17(1)(b) to improve the quality of dairy produce; Section 17(1)(c) to secure reasonable and stable prices to producers of dairy produce; Section 17(1)(d) to promote market research in relation to dairy produce; Section 17(1)(e) to permit the greatest possible degree of private enterprise in the production, processing and sale of dairy produce, consistent with the efficiency of the producer and the interests of other producers and of consumers; and Section 17(1)(f) generally to ensure, either by itself or in association with any Government department or local authority, the adoption of measures and practices designed to promote greater efficiency in the dairy industry. Section 17(2) In the exercise of its powers and in the performance of its functions under this Act, the Board shall act in accordance with any general or special directions that may be given to it by the Cabinet Secretary. [Act No. 45 of 1963 , s. 6.]

Section 18. Management and utilization of assets of the Board Section 18(1) All the funds, assets and property, movable and immovable, of the Board shall be managed and utilised by the Board in accordance with the provisions of this Act and of any regulations made thereunder, in such manner and for such purposes as in the opinion of the Board shall promote the best interests of the dairy industry. Section 18(2) The expenses of the Board shall be met from the Board’s funds.

Section 19. Power to make regulations Section prescribing grades for any form of dairy produce, and minimum standards to which dairy produce shall conform, whether as a condition of importation or of exportation or of sale within Kenya;

Section 20. General provisions with regard to regulations Section their application to any specified area, or class of persons, or type or description of dairy produce;

Section 21. Regional and delegates meetings Section 21(1) The Board shall at least once in every year convene a meeting (hereinafter referred to as a regional meeting) of the registered producers in each region into which Kenya may, for this purpose, be divided by the Board. Section 21(2) The Chairperson of the Board, or in his absence a member of the Board appointed by the Chairperson, shall preside at every regional meeting. Section 21(3) The Board shall at least once in every year convene a meeting of delegates of registered producers for the purpose of considering the reports and accounts specified in section 30 (4), of recommending to the Cabinet Secretary the remuneration of the Chairperson and members of the Board and of transacting such other business of which notice has been given. Section 21(4) The Board shall give the Cabinet Secretary at least six weeks’ prior notification of the date upon which each annual meeting under subsection (3) is to be held, and the Cabinet Secretary shall cause not less than ten persons who in his opinion are representative of the consumers affected by the meeting to be invited thereto, not less than seven of whom shall be invited after consul...

Section 22. Notice of meetings Section 22(1)(a) the time and place appointed for the holding of the meeting; and Section 22(1)(b) the business to be transacted at the meeting, Section 22(2) The Board shall include in the business to be transacted at a regional meeting or a meeting of delegates of registered producers any matter of which not less than ten registered producers in the region or a delegate of registered producers, as the case may be, have given notice in writing to the Board. Section 22(3) No business shall be transacted at a regional meeting or meeting of delegates of registered producers other than the business of which notice has been given under subsection (1) by the Board: Provided that the accidental omission to send a notice to a registered producer or a delegate, as the case may be, shall not invalidate proceedings of the meeting.

Section 23. Vesting of dairy produce in the Board Section 23(1) Subject to subsection (2), the Cabinet Secretary may by order empower the Board to acquire by compulsory purchase all or any form of dairy produce, upon such terms as to the price of, and the method of payment for, such form of produce and otherwise as may be specified in the order. Section 23(2) No order shall be made under subsection (1) unless notice of its intention to apply for the making of such an order has been published by the Board in a newspaper circulating in the area in which the order is to have effect at least twenty-one days before the application. Section 23(3) A person who thinks he may suffer detriment by reason of an order proposed to be made under subsection (1), or by any provision of the order, may, within twenty-one days of the publication of the notice referred to in subsection (2) state his objection in writing to the Cabinet Secretary. Section 23(4) A person who obstructs or impedes the Board or its servants or agents in an acquisition pursuant to an order made under this section, or who fails to comply with any reasonable requirement made by the Board pursuant to such an order, shall be guil...

Section 24. Power of the Board to acquire and dispose of property Section 24(1) The Board may, out of its funds, purchase, take on lease, hire or otherwise acquire such land, buildings, plant, machinery, equipment and livestock as in the opinion of the Board are necessary for the performance of its functions. Section 24(2) The Board may sell, transfer, lease, hire, or otherwise dispose of any of its movable or immovable property. Section 24(3) The Board may, out of its funds, provide for the erection of such depots, factories and stores as it thinks fit. Section 24(4) The Board may buy or import any dairy produce, may process or manufacture any dairy produce and may sell, grade, pack, store, adapt for sale, insure, advertise, transport or export any dairy produce or any dairy produce so processed or manufactured. Section 24(5) The Board may, out of its funds, if in its opinion it is expedient so to do, purchase sites and erect houses for the use of its officers or make advances, on such terms and conditions as it thinks fit to its officers for the purpose of enabling those officers to purchase houses for their own use. Section 24(6) Where pursuant to subsection (5) the Board erects...

Section 25. Board may establish accounts and special funds Section 25(1) The Board may establish in the name of the Board at such banks as it may determine such accounts as it deems necessary or convenient for the exercise of its powers and functions under the provisions of this Act or of regulations made under this Act. Section 25(2) Every such account shall be operated on by cheque signed by a person or persons as may from time to time be authorised in that behalf by the Board. Section 25(3) The Board may from time to time establish special funds or reserves as it deems necessary or expedient for any purpose contemplated by this Act.

Section 26. Investment of funds of the Board Section The Board may invest moneys in securities in which trustees are empowered to invest under the Trustee Act (Cap. 167), and in other securities which may be approved for the purpose by the Cabinet Secretary for the time being responsible for Finance.

Section 27. Loans, subsidies and guarantees by the Board Section make loans to persons, or grant subsidies to producers or manufacturers, for such purposes and on such terms and conditions as the Cabinet Secretary may approve;

Section 28. Borrowing powers Section The Board may, with the consent of the Cabinet Secretary and upon and subject to such conditions as the Cabinet Secretary thinks fit, borrow moneys and mortgage or charge any of its property.

Section 29. Books of account Section The Board shall cause to be kept proper books of account and other books in relation thereto in respect of all its undertakings, funds, activities and property, including yearly statements of income and expenditure and balance sheets made up to the end of each financial year showing in detail the assets and liabilities of the Board, and shall prepare such other accounts as the Cabinet Secretary may require.

Section 30. Audit of accounts Section 30(1) The Cabinet Secretary shall appoint one or more accountants (in this section referred to as the auditors) being holders of practising certificates issued pursuant to section 21 of the Accountants Act (Cap. 531), who shall annually examine, audit and report upon the accounts of the Board. Section 30(2) The Board shall produce and lay before the auditors all books and accounts of the Board, with all vouchers in support thereof, and all books, papers and writings in its possession or control relating thereto, and the auditors may require from all members, officers, agents and employees of the Board such information and explanation as may be necessary for the performance of their duties as auditors. Section 30(3) The expenses of and incidental to the audit shall be paid by the Board. Section 30(4) The Board shall within a period of seven months after the end of its financial year, or within such longer period as the Cabinet Secretary may approve, submit to the Cabinet Secretary a report of its operations during that year, and the auditor’s report, together with the yearly statement of income and expenditure, balance sheet and such other state...

Section 31. "Primary producer" defined Section In this Part, "primary producer" means a person who produces milk for sale, but does not include persons employed by him for that purpose.

Section 32. Requirement to register Section 32(1)(a) the full name and postal address of the primary producer; Section 32(1)(b) the survey or land reference number of the dairy premises used; Section 32(1)(c) such particulars as to the cattle, equipment, production and disposal of produce, and otherwise in relation thereto, as may be prescribed by the Board. Section 32(2) A primary producer who begins production at any time after this Part comes into operation in relation to himself and to his area of production shall, within one month of beginning production, register in the manner provided in subsection (1). Section 32(3) A primary producer who is registered in accordance with this section shall, within one month of any change occurring in the particulars supplied by him for registration, notify the Board in writing of the details of the change.

Section 33. Penalty for failure to register Section After the appropriate period of one month referred to in section 32 has elapsed, a primary producer to whom this Part applies who carries on business as such without being registered in accordance with this Part, or who wilfully neglects to supply the particulars prescribed by that section, or who knowingly or recklessly supplies any such particulars which are materially false, shall be guilty of an offence and liable to a fine not exceeding two thousand shillings.

Section 34. Register of primary producers Section 34(1) The Board shall maintain a register for the purposes of this Part and shall record therein the particulars supplied in accordance with section 32 . Section 34(2) Where the Board has reasonable cause to believe that a person whose particulars are so recorded has ceased to be a primary producer it may, after giving that person written notification by registered post of its intention so to do, remove the relevant particulars from the register. Section 34(3) The register shall be prima facie proof of the fact that a person is or is not registered under this Part.

Section 35. Offences by companies Section Where a person in breach of any provision of this Act or of any regulations made under this Act is a company, every director, manager, secretary and other officer of the company who is knowingly a party to the breach shall also be guilty of the breach and be liable to the same punishment.

Section 36. Appeals Section A person aggrieved by a decision of the Board or of an agent of the Board may, within one month after being notified of that decision, appeal to the Agricultural Appeals Tribunal established under Part XV of the Agriculture Act (Repealed), and, save as aforesaid, the provisions of that Part shall, mutatis mutandis , apply in relation to every such appeal.

Section 37. Act additional to public health laws Section The provisions of this Act and of any regulations made thereunder shall be in addition to and not in derogation of the provisions of any written law relating to public health for the time being in force.