Fisheries Management and Development (Fish Levy Trust Fund) Order, 2024

Section 1. Citation Section This Order may be cited as the Fisheries Management (Fish Levy Trust Fund) Order, 2024.

Section 2. Interpretation Section In this Order, unless the context otherwise requires— “Act” means the Fisheries Management and Development Act ( Cap. 378 ); “applicant” means a person who has applied to the Fund for funds; “Board of Trustees” means the Board of Trustees of the Fund constituted in accordance with section 28 of the Act; “by-catch” means the non-target species of fish that are retained and sold because it is economic to do so; “Cabinet Secretary” has the meaning assigned to it in the Act; “County Executive Committee Member” means the County Executive Committee Member responsible for fisheries within the relevant county; “fisher” has the meaning assigned to it under the Act; “Fund” means the Fish Levy Trust Fund established under section 28 of the Act; and “loan” means sum of money borrowed to be paid back at no interest.

Section 3. Purposes of the Fund Section promote fisheries management and conservation;

Section 4. Expenditures of the Fund Section 4(1) The Board of Trustees may use a maximum of three percent of the approved budget of the Fund to cover the administrative costs of the Fund. Section 4(2) The expenditure incurred on the Fund shall be on the basis of, and limited to, the annual budget estimates which shall be prepared by the Board of Trustees and recommended to the Cabinet Secretary for approval and submission to the Cabinet Secretary for the National Treasury, at the beginning of the financial year to which they relate. Section 4(3) Any revision of the approved annual budget estimates shall be referred to the Board of Trustees for approval.

Section 5. Board of Trustees Section 5(1) The Fund shall be administered by the Board of Trustees established under section 28 (4) and (5) of the Act. Section 5(2) The Board of Trustees shall elect the Chairperson of the Board at the first meeting of the Board.

Section 6. Qualifications of members of the Board of Trustees Section possesses a degree from a university recognized in Kenya;

Section 7. Functions of the Board of Trustees Section 7(1)(a) oversee the administration of the Fund; Section 7(1)(b) receive reports on the performance of the Fund; Section 7(1)(c) advise the Cabinet Secretary on the operations of the Fund; Section 7(1)(d) review the estimates of annual revenue and expenditure of the Fund and recommend the estimates to the Cabinet Secretary for approval and submission to the Cabinet Secretary responsible for the National Treasury; Section 7(1)(e) review the Fund priorities and criteria for allocation and disbursement of funds to beneficiaries in furtherance of the purposes of the Fund; Section 7(1)(f) mobilize resources for the Fund; Section 7(1)(g) open and operate a bank account with the approval of the National Treasury; Section 7(1)(h) manage assets, equipment and all properties under the Fund; and Section 7(1)(i) promote and facilitate realization of the objects and purposes of the Fund. Section 7(2) The Board of Trustees may in writing, delegate to an employee of the Fund, the performance of any of the functions.

Section 8. Board of Trustees Section The Board of Trustees may for the purposes of performing its functions, establish such committees of the Board of Trustees it Committees of the deems necessary and the Board of Trustees may delegate to any such committee such of its functions as it deems fit.

Section 9. Managing Trustee Section 9(1) The Board shall appoint a Managing Trustee who shall hold office on such terms and conditions of service as may be specified in the instrument of appointment. Section 9(2) The Managing Trustee shall be selected through a competitive process and shall be accountable to the Board in the performance of duties. Section 9(3) The Managing Trustee shall hold office for a term of three years and shall be eligible for re-appointment for one further term. Section 9(4)(a) manage the day-to-day affairs of the Fund; Section 9(4)(b) ensure the proper management of contracts and agreements entered into by the Fund; Section 9(4)(c) advise the Board of Trustees on policies intended to enable the Board of Trustees effectively administer the Fund; Section 9(4)(d) manage the staff of the Fund; Section 9(4)(e) facilitate the preparation of the budget, strategies, operational proposals, annual plans and corporate policies for deliberation by the Board of Trustees and implementing decisions and resolutions of the Board of Trustees; Section 9(4)(f) effectively manage the operations of the Fund and foster a conducive corporate culture that promotes ethical practices...

Section 10. Staff of the Fund Section 10(1) The Board of Trustees shall appoint such officers and other staff of the Fund as shall be necessary for the proper discharge of the functions of the Fund under this Order, upon such terms and conditions of service as determined by the Board of Trustees on the recommendations of the Salaries and Remuneration Commission. Section 10(2) The Board of Trustees may, upon request, accept the secondment of such number of staff to assist the Fund in discharging its functions. Section 10(3) A public officer seconded to the Fund shall, during the period of secondment be deemed to be an officer of the Fund and shall be subject to the direction and control of the Board of Trustees.

Section 11. Registration of applicants Section 11(1) A person who wishes to access funds from the Fund shall apply to the Fund in the manner set out in paragraph 12 and the Schedule. Section 11(2)(a) an artisanal fisher; Section 11(2)(b) a fishing gear maker or repairer; Section 11(2)(c) a boat maker; Section 11(2)(d) a fish trader; Section 11(2)(e) a fish processor; or Section 11(2)(f) a fish transporter. Section 11(3)(a) fisheries research; Section 11(3)(b) fisheries management; Section 11(3)(c) capacity building; Section 11(3)(d) climate change impacts; or Section 11(3)(e) insurance.

Section 12. Loans application procedure Section a recommendation letter from the beach management unit in which the applicant is a member;

Section 13. Processing of application of loans Section 13(1)(a) first in first out principle of loan processing; Section 13(1)(b) preference to applicants who are women, youth or persons with disability; Section 13(1)(c) applicable loan threshold for each category of applicant based on the ratio of the maximum amount applied for to the annual turn-over of the applicant's business or projected annual turn-over for start-ups; Section 13(1)(d) ability to repay the loan within the stipulated loan tenure; Section 13(1)(e) an undertaking by the applicant that the loan shall only be used for the purpose applied for until the loan is repaid in full by the applicant; Section 13(1)(f) an applicant shall not be eligible for more than one loan from the Fund unless the applicant has fully repaid the initial loan; and Section 13(1)(g) an undertaking by the applicant to notify the Board of Trustees of any change in physical address. Section 13(2)(a) all loans from the Fund shall be approved and recorded in the minutes of the meetings of the Board of Trustees; Section 13(2)(b) all loans from the Fund shall be advanced to the successful applicants and shall be disbursed through the bank account of...

Section 14. Eligibility criteria for conditional grants Section 14(1)(a) has an annual work program aligned to the strategic plan of the beach management unit approved by the governing body of the beach management unit; and Section 14(1)(b) has, in the case of an infrastructure development project, prepared project designs, plans and bills of quantities, approved by the governing body of the beach management unit and the requisite regulatory approvals from relevant government institutions. Section 14(2)(a) has an annual work program aligned to the strategic plan of the association approved by the governing body of the association; and Section 14(2)(b) has, in the case of an infrastructure development project, prepared project designs, plans and bills of quantities, approved by the governing body of the association and the requisite regulatory approvals from relevant government institutions. Section 14(3) A county or an agency of the national government shall be eligible to apply for a conditional grant from the Fund if the county or agency has, in the case of an infrastructure development project, prepared project designs, plans and bills of quantities, approved by the county assem...

Section 15. Procedure for accessing conditional grants Section 15(1)(a) the ceilings for the conditional grants that may be issued for each object of the Fund; and Section 15(1)(b) priority programs, projects and activities to be eligible to receive a conditional grant in that financial year. Section 15(2) A person or entity which intends to receive a conditional grant from the Fund and meets the criteria set out under paragraph 14 shall at least six months before the commencement of a financial year apply to the Administrator of the Fund by submitting Form FLR 3 set out in the Schedule. Section 15(3) A person who intends to receive a conditional grant shall provide thirty percent of the required sum. Section 15(4)(a) the minutes of a properly constituted meeting of the governing body of the beach management unit containing the resolution to apply for a conditional grant from the Fund; Section 15(4)(b) an annual work program aligned to the strategic plan of the beach management unit approved by the governing body of the beach management unit; Section 15(4)(c) where the project for which the conditional grant is applied for is an infrastructure development project, the project desig...

Section 16. Conditions for disbursements of conditional grants Section the disbursement is approved and recorded in minutes of the Board of Trustees; and

Section 17. Appeals Section 17(1)(a) previously defaulted; Section 17(1)(b) not complied with any requirement under this Order; or Section 17(1)(c) been previously convicted for breaching various fisheries laws. Section 17(2) An applicant whose application for a grant or a loan is rejected, may appeal to the Cabinet Secretary in writing. Section 17(3) Upon receipt of an appeal under subparagraph (2) above, the Cabinet Secretary shall form an ad-hoc committee to determine the appeal. Section 17(4) The decision of the ad-hoc committee shall be final. Section 17(5) Without prejudice to subparagraph (4) an aggrieved person has a right to seek legal redress at the court.

Section 18. Obligations of recipient of conditional grants or loans Section 18(1)(a) submit quarterly and annual progress reports of the program, project or activity funded by the Fund; and Section 18(1)(b) allow the staff of the Fund to monitor and evaluate the program, project or activity funded by the Fund. Section 18(2)(a) the purpose for which the funds were disbursed was not undertaken; Section 18(2)(b) the purpose for which the funds were disbursed was undertaken but the funds were not fully utilized; or Section 18(2)(c) savings from the funds are realized as a result of change in circumstances. Section 18(3) Unutilized funds returned under subparagraph (2) shall be recorded as a receipt of the Fund. Section 18(4) A person who fails to comply with subparagraph (2) or (3) shall not be eligible for any subsequent disbursement from the Fund.

Section 19. Levies Section The levies payable on the value of the fish landed shall be as set out in the Schedule.

Section 20. Annual estimates Section 20(1) At least three months before the commencement of each financial year, the Board of Trustees shall prepare estimates of the revenue and expenditure of the Fund for that year. Section 20(2)(a) revenues projected to be received by the Fund from the sources of funds provided for under this Order; Section 20(2)(b) moneys allocated as conditional grants and loans under this Order; Section 20(2)(c) monies for the administration expenses of the Fund; Section 20(2)(d) the payment of the salaries, allowances and other charges in respect of the staff of the Fund; Section 20(2)(e) the payment of the allowances and other charges in respect of the Board of Trustees; Section 20(2)(f) the payment of pensions, gratuities and other charges in respect of the staff of the Fund; and Section 20(2)(g) the proper maintenance of the assets, equipment and properties under the Fund. Section 20(3) The annual estimates shall be submitted to the Cabinet Secretary for the National Treasury for approval and thereafter, the Board of Trustees shall not increase or decrease the annual estimates unless a supplementary budget has been approved in the same manner.

Section 21. Quarterly reports Section The Board of Trustees shall prepare quarterly financial and non-financial reports in accordance with the format prescribed in the Public Finance Management Act, and submit the report to the Cabinet Secretary and the Cabinet Secretary for the National Treasury.

Section 22. Accounts and audit Section 22(1) The Board of Trustees shall keep proper books and records of account of the income, expenditure, assets, equipment and properties of the Fund. Section 22(2)(a) a statement of the income and expenditure of the Fund during the financial year; and Section 22(2)(b) a statement of the assets and liabilities of the Fund on the last day of that financial year. Section 22(3) The financial statements prepared under subparagraph (2), shall be in accordance with the prescribed format in the Public Finance Management Act (Cap 412A). Section 22(4) The accounts of the Fund shall be audited and reported upon in accordance with the Public Audit Act. Cap. 412B . Section 22(5) The Board shall inform and keep the public informed of its activities and operations through regular publications and such activities and operations shall be accessible to the public unless there are reasons of commercial confidentiality or security justifying exclusions.

Section 23. Investment of funds Section The Administrator may invest any of the funds of the Fundwhich are not immediately required for its purposes in such government securities in accordance with the provisions of the Public Finance Management Act (Cap 412A).

Section 24. Retention of receipts and earnings Section All receipts, earnings and accruals to the Fund, and the balance of the Fund at the close of each financial year shall be retained by the Fund for the purposes of the Fund.

Section 25. Offences and penalties Section 25(1) A person who misappropriates any funds or assets of the Fund, or assists or causes any person to misappropriate or apply the funds otherwise than in the manner provided in this Order, commits an offence and shall, on conviction, be liable to the penalties provided under section 24(5) of the Statutory Instruments Act (Cap. 2A). Section 25(2) A person who commits an offence under this Order, for which no penalty has been prescribed shall, on conviction, be liable to the penalties provided under section 24(5) of the Statutory Instruments Act Cap. 2A .

Section 26. Revocation of L.N. No. 58 of 2024 Section 26(1) The Fisheries Management and Development (Fish Levy Trust Fund) Order, 2024 is revoked. Section 26(2)(a) a person who is an employee of the Fund under the revoked Order shall, at the commencement of this Order, be deemed to be an employee of the Fund; and Section 26(2)(b) the assets and liabilities of the Fund under the revoked Order shall, at the commencement of this Order, be deemed to be assets and liabilities of the Fund.