The Crops (Tea Industry) Regulations
These Regulations may be cited as the Crops (Tea Industry) Regulations.
AI-assisted research synopsis — verify against the official legal text below.
- Jurisdiction
- Kenya
- Instrument
- Notice
- Citation
- Legal Notice 97 of 2020
- Version
- Undated source snapshot
- Language
- en
Source attribution: Source: Kenya Law
Statute overview
About this statute
These Regulations may be cited as the Crops (Tea Industry) Regulations. This section provides definitions of terms used in the Regulations (for example "auction", "Authority", "Cabinet Secretary", and specific industry definitions for tea actors and processes). The Regulations apply to tea produced and marketed in Kenya and to tea imported into or exported out of Kenya. States that the purpose of the Regulations is to guide the development, promotion and regulation of the tea industry for the benefit of tea growers and other stakeholders. Sets rules for boards of directors of smallholder tea factory limited companies on election method, membership size, tenure, and gender composition.
Search within this statute
Search all stored provisions in this version.
Legal text
Provisions of The Crops (Tea Industry) Regulations
Showing 48 of 48
Part I
PRELIMINARY
- 1
PRELIMINARY - 1. Citation
AI-assisted research summary: These Regulations may be cited as the Crops (Tea Industry) Regulations.
Section 1. Citation Section These Regulations may be cited as the Crops (Tea Industry) Regulations. - 2
PRELIMINARY - 2. Interpretation
AI-assisted research summary: This section provides definitions of terms used in the Regulations (for example "auction", "Authority", "Cabinet Secretary", and specific industry definitions for tea actors and processes).
Section 2. Interpretation Section In these Regulations, unless the context otherwise requires— "auction" means a process of buying and selling tea by offering bids and selling it to the highest bidder through a physical or electronic system; "auction organizer' means a person, company or firm established for the purpose of organizing tea auctions in Kenya; "Authority" means the Agriculture and Food Authority established under section 3 of the Agriculture and Food Authority Act (Cap. 317); "broker" means a person or company or firm established for the purpose of negotiating the purchase or sale of tea between producers and buyers; "blending" means the process of mixing of teas of different or same grades to affect the flavour and characteristics of the tea for the purposes of packing and sale; "buyer" means a person, company or a firm engaged in acquiring made tea for re-sale in the local or export market, including export of imported tea; "black CTC tea" means tea derived exclusively, and produced by acceptable processes and includes oxidation (fermentation) and drying, from the leaves, buds and tender stems of varieties of the species Camellia Sinensis (linaeus) , 0. Kuntze, known to be suitable for making tea for human consumption as a beverage; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to Agriculture; "Certificate of Origin" means a document issued in a customs territory by a competent authority confirming the origin of tea product; "co-operative society" means a co-operative society registered under the Co-operative Societies Act (Cap. 490); "commercial tea nursery operator "means a person or firm who propagates not less than five thousand tea seedlings or planting material for sale; "County Executive Committee Member" means the County Executive Member for the time being responsible for matters relating to agriculture in the respective tea producing county; "County Government" shall have the meaning assigned to it under Article 176 of the Constitution; "cottage tea factory" means a tea factory limited company that manufactures high value specialty teas of not less than thirty-eight thousand five hundred kilograms of made tea and not more than four hundred thousand kilograms of made tea per annum; "cottage tea manufacture" mean the processing of not less than thirty-eight thousand five hundred kilograms of made tea and not more than four hundred thousand kilograms of made tea per annum; "commercial green leaf transporter" means a person, a firm or a corporate body contracted by a tea factory limited company to provide green leaf transport services from the farm or green leaf collection centre to the tea factory at a fee; "crops inspector" means a person appointed as an inspector in accordance with section 27 of the Act; "Directorate" means the Directorate established under the Agriculture and Food Authority Act (Cap. 317) for the time being responsible for matters related to tea; "electronic trading platform" means an information technology and/or digital or electronic system installed and/or established by an auction organizer for purposes of electronic buying and selling tea at the auction; "export" means to take tea or cause tea to be taken out of the Kenya customs territory or to an Export Processing Zone; "exporter" means a person, a firm, or a corporate body engaged in the business of blending, packaging and exporting of tea in bulk or in value added form; "tea factory limited company" means a person who operates a tea processing or manufacturing factory and sources green leaf from own tea farm(s) and from registered tea growers; "green leaf" means green leaf detached from tea plants but not dried or processed in any way and includes purple leaf; "Green Leaf Agreement" means an agreement for supply of green leaf between the tea grower and the tea factory limited company and the obligations thereof; "import" means to bring tea into or cause to be brought into the Kenya customs territory or to an Export Processing Zone; "importer" means a person, a firm, or a corporate body engaged in the business of importing tea into Kenya; "Kenya Standard 1927 Tea Packets and Containers" means the Kenya Standard or an equivalent standard, that specifies the requirements for tea packets and containers, applicable to tea packaging for retail in the form of tea bags, tea packets, instant tea and ready to drink containers or instant tea specifications or their recognized equivalent but does not include tea sacks; "licensee" means a person who holds a tea manufacturing licence issued under the Act; "licensing authority" means the Authority or the County Government as the case may be; "made tea" means the derivative from green leaf through a manufacturing process; "manufacture" means the mechanical or chemical processing and conversion of green tea leaf into made tea or other tea products and includes the packaging, labelling, distribution of tea and tea products for sale; "management agent" means any person that is appointed by a tea factory limited company through a specific management contract or agreement to perform or offer professional services other than company secretary services; "manufacturing licence" means a licence issued under the Act; "point of export" means a designated customs border point at which made tea is taken out of the Kenya customs territory or to an Export Processing Zone; "point of import" means a designated customs border point at which made tea is brought into the Kenya customs territory or to an Export Processing Zone, from any place outside Kenya; "plantation tea grower" means a person cultivating tea in parcels of land and who has own tea processing facility; "person" includes a firm, a company, an association, cooperative society or a corporate body; "producer" means a person who manufactures green leaf from smallholder tea growers or from own tea farms; "smallholder tea grower" means a grower cultivating tea in a parcel or parcels of land without own individual tea processing facility; "small holder tea factory limited company" means a tea factory collectively owned through shares by small holder tea growers; "specialty teas" means high value teas manufactured whole leaf, semi-aerated or non- aerated and includes green, purple, white, oolong and orthodox but does not include black curl tear and cut teas; "tea" means the plant botanically known as camellia sinensis and includes its seed, tea plants and the leaf, whether on the plant or detached therefrom, and in the latter case, whether green tea or manufactured tea; "tea factory" means a factory that processes and manufactures tea leaf into made tea; "tea grower" means any person who is cultivating tea in a parcel or parcels of land; "tea packer" any person who blends, brands and packs tea into packets or containers holding not more than ten kilograms of tea intended for sale locally or for export; "tea dealer" includes a tea transporter, warehouse operator, buyer, exporter, importer, broker, packer, manufacturer, management agent, marketing agent and auction organizer; "transit tea" means any consignment of tea transiting through Kenya's custom territory and is destined for another custom territory; "type of tea planted" means green leaf or purple leaf; "value addition" means improvements on made tea through flavouring, branding and packaging in not more than ten kilograms; "warehouse" means a premises used for the storage of made tea by a warehouseman; and "warehouseman" means a company which is in the business of storing tea in Kenya. - 3
PRELIMINARY - 3. Application
AI-assisted research summary: The Regulations apply to tea produced and marketed in Kenya and to tea imported into or exported out of Kenya.
Section 3. Application Section These Regulations shall apply with respect to tea produced and marketed in Kenya, and imported or exported into and out of Kenya. - 4
PRELIMINARY - 4. Object and purpose of these Regulations
AI-assisted research summary: States that the purpose of the Regulations is to guide the development, promotion and regulation of the tea industry for the benefit of tea growers and other stakeholders.
Section 4. Object and purpose of these Regulations Section 4(1) The purpose of these Regulations is to guide the development, promotion, and regulation of the tea industry for the benefit of the tea growers and other stakeholders in the tea industry. Section 4(2)(a) procedures and conditions for registration of all players along the value chain; Section 4(2)(b) procedures, terms and conditions for the issuance of licenses and registration certificates under these Regulations; Section 4(2)(c) collection and maintenance of data related to tea; Section 4(2)(d) authentication and verification of tea exports and imports; Section 4(2)(e) the promotion of value addition and product diversification of Kenya tea products to target diverse tea markets; Section 4(2)(f) compliance and enforcement of tea standards to ensure quality assurance and safety; and Section 4(2)(g) regulation of the tea sub sector.
Part II
REGISTRATION AND LICENSING PROVISIONS
- 10
REGISTRATION AND LICENSING PROVISIONS - 10. Boards of Smallholder Tea Factories
AI-assisted research summary: Sets rules for boards of directors of smallholder tea factory limited companies on election method, membership size, tenure, and gender composition.
Section 10. Boards of Smallholder Tea Factories Section 10(1) The board of directors for smallholder tea factory limited companies shall be elected through a democratic system of one man one vote. Section 10(2) The Board membership for smallholder tea factory limited companies shall be a maximum of three (3) members. Provided that persons serving as directors of smallholder tea factory limited companies before the commencement of these regulations shall continue to serve for the remainder of their term. Section 10(3) The tenure of the board members for smallholder tea factory limited companies shall be for a maximum of two terms of three years each. Section 10(4) Smallholder tea factories limited companies shall put in place measures to ensure that not more than two thirds of the board members elected are of the same gender. - 11
REGISTRATION AND LICENSING PROVISIONS - 11. Illegal manufacture
AI-assisted research summary: Persons must not manufacture or process tea without a licence; doing so (or buying/selling/possessing certain green leaf) is an offence and penalties under section 19 of the Crops Act apply.
Section 11. Illegal manufacture Section 11(1) A person shall not manufacture or process tea except in accordance with a licence issued under the Act or these Regulations. Section 11(2) A person who manufactures or processes tea for sale without a licence commits an offence. Section 11(3) A person who buys, sells, offers for sale, transports or has possession of green leaf which to the person's knowledge or belief is from a non-registered grower or a person who does not cultivate tea commits an offence. Section 11(4) A person who contravenes the provisions of this regulations and shall be liable on conviction to the penalty prescribed under section 19 of the Crops Act (Cap. 318). - 12
REGISTRATION AND LICENSING PROVISIONS - 12. Annual and Monthly Production Statistical Returns
AI-assisted research summary: Persons must complete and submit an Annual Statistical Return to the Authority (with a copy to the county government) by the fifteenth day of January each year, and must complete and submit a Monthly Production Statistical Return to the Authority (with a copy to the county government) by the fourteenth day of each month.
Section 12. Annual and Monthly Production Statistical Returns Section 12(1)(a) not later than the fifteenth day of January of every year, complete and submit to the Authority with a copy to the respective county government, an Annual Statistical Return in Form AFA\TD\ Fl set out in the First Schedule; Section 12(1)(b) not later than the fourteenth day of each month, complete and submit to the Authority and a copy to the respective county government a Monthly Production Statistical Returns in Form AFA\TD\F2 set out in the First Schedule. Section 12(2) A person who contravenes the provisions of this regulation commits an offence. - 13
REGISTRATION AND LICENSING PROVISIONS - 13. Registration of warehouse
AI-assisted research summary: People planning to operate a tea warehouse must apply to the Authority using Form AFA\TD\G1 and pay the prescribed fee; the Authority must issue a registration certificate in Form AFA\TD\G2; contravention is an offence liable to penalties under section 16 of the Act.
Section 13. Registration of warehouse Section 13(1) A person who intends to carry out the business of tea warehousing shall apply to the Authority for registration of the warehouse premises or renewal of the registration certificate in Form AFA\TD\G1 set out in the First Schedule and pay the fee set out in the Second Schedule. Section 13(2) The Authority shall issue the applicant a registration certificate for the tea warehouse in Form AFA\TD\G2 as set out in the First Schedule. Section 13(3) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalties prescribed under section 16 of the Act. - 14
REGISTRATION AND LICENSING PROVISIONS - 14. Registration of a tea packer
AI-assisted research summary: People who want to carry on the business of tea packing must apply to the Authority for registration or renew their certificate and pay the fee; the Authority must issue a registration certificate; contravention is an offence liable to penalties under section 16 of the Act.
Section 14. Registration of a tea packer Section 14(1) A person who intends to carry out the business of tea packing shall apply to the Authority for registration or renew their certificate in Form AFA\TD\H1 set out in the First Schedule and pay the fee set out in the Second Schedule. Section 14(2) The Authority shall issue a registration certificate to a tea packer in Form AFA\TD\H2 set out in the First Schedule. Section 14(3) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalties prescribed under section 16 of the Act. - 15
REGISTRATION AND LICENSING PROVISIONS - 15. Monthly return for a Tea Packer
AI-assisted research summary: Tea packers must, not later than the 14th day of each month, complete and submit Monthly Statistical Returns in Form AFA\TD\H3 to the Authority with a copy to the county government.
Section 15. Monthly return for a Tea Packer Section 15(1) Every tea packer shall, not later than the fourteenth day of each month, complete and submit to the Authority with a copy to the respective the county government Monthly Statistical Returns in Form AFA\TD\H3 set out in the First Schedule. Section 15(2) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to a fine not exceeding twenty thousand shillings or to imprisonment to a period not exceeding six months or to both. - 16
REGISTRATION AND LICENSING PROVISIONS - 16. Registration of a tea buyer or exporter
AI-assisted research summary: Persons intending to be tea buyers or exporters must apply to the Authority in the specified Form and pay the fee; registered buyers/exporters must meet value‑addition targets (40% generally; transitional 10% or 5%) and submit quarterly compliance returns; applicants must provide proposals and evidence; the Authority must issue a certificate if requirements are met.
Section 16. Registration of a tea buyer or exporter Section 16(1) A person who intends to carry on the business of tea buying or exporting shall apply to the Authority for registration or renewal of their registration in Form AFA \TD\J1 set out in the First Schedule and pay the fee set out in the Second Schedule. Section 16(2) All tea buyers/exporters shall value add at least forty percent (40%) of their annual Kenya tea exports. Section 16(3) Provided that all persons registered as tea buyers/exporters before the coming into operation of these Regulations shall comply with regulation 16 (2) within 8 years from the date of commencement of these regulations. Section 16(4) Notwithstanding the provisions of sub regulation 16(2) & (3) above, all persons registered as tea buyers/exporters after the coming into effect of these regulations shall value add at least 10% of their annual Kenyan tea exports annually while persons registered as buyers/exporters before the coming into effect of these regulations shall value add at least 5% of their annual Kenyan tea exports annually to gradually comply with the requirements of sub regulation (2) and (3). Section 16(5) All persons registered as tea buyers/exporters shall submit to the authority a return on quarterly basis indicating their level of compliance with provisions of regulation 16(2), (3) and (4). Section 16(6)(a) proposal to undertake value addition; Section 16(6)(a)(i) proposal to undertake value addition; Section 16(6)(a)(ii) creation of new market linkages; Section 16(6)(a)(iii) creation of employment opportunities; and Section 16(6)(a)(iv) technology transfer; Section 16(6)(b) evidence of suitable premises for value addition; Section 16(6)(c) availability of equipment for the tea buyer or exporter to undertake tea value addition; Section 16(7) Where the Authority is satisfied that the application under sub regulation (1) meets the set requirements, the Authority shall issue or renew a registration certificate to a tea buyer or exporter in Form AFA\TD\J2 as set out in the First Schedule. - 17
REGISTRATION AND LICENSING PROVISIONS - 17. Registration of a Tea Broker
AI-assisted research summary: People who intend to carry on the business of tea brokerage must apply to the Authority for registration or renew their registration in Form AFA\TD\K1 and pay the fee; the Authority must issue a registration certificate in Form AFA\TD\K2; contravention is an offence punishable as prescribed under Section 37 of the Act.
Section 17. Registration of a Tea Broker Section 17(1) A person who intends to carry on the business of tea brokerage shall apply for registration to the Authority or renew their registration in Form AFA\TD\K1 set out in the First Schedule and pay the fee set out in the Second Schedule. Section 17(2) The Authority shall issue a registration certificate to a tea broker in Form AFA\TD\K2 as set out in the First Schedule. Section 17(3) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under Section 37 of the Act. - 18
REGISTRATION AND LICENSING PROVISIONS - 18. Considerations before registration and licensing and renewal
AI-assisted research summary: Applicants must comply with the Act, Regulations and other law and must be fit and proper; the Authority must consider specified past conduct and have due regard to listed Acts when determining fitness.
Section 18. Considerations before registration and licensing and renewal Section 18(1)(a) the applicant has complied with the provisions of the Act, these Regulations and any other relevant law; and Section 18(1)(b) the applicant or the directors of the company are fit and proper for the function for which they seek a licence or registration. Section 18(2)(a) whether they have taken part in any business practice in the tea value chain that in the opinion of the Authority was fraudulent, prejudicial or otherwise improper; or which otherwise discredited their method of doing business; and Section 18(2)(b) whether they have been directors of a company or entity whose licence or registration certificate has previously been revoked or suspended by the Authority for any cause. Section 18(3) In determining whether a person or director is fit and proper, the Authority shall have due regard to the provisions of the Fair Administrative Action Act (Cap. 7L), the Companies Act (Cap. 486) and any other relevant law. - 19
REGISTRATION AND LICENSING PROVISIONS - 19. Monthly return for buyer, exporter, importer, broker and warehouse
AI-assisted research summary: Tea buyers, exporters, importers and brokers must submit a monthly return (Form AFA\TD\L) to the Authority by the 14th of each month; warehousemen must submit an annual statistical return (Form AFA\TD\ M) to the Authority by 15 January each year; returns must include details of teas bought in the previous month and their source and destination; contravening persons face a fine up to twenty thousand shillings or imprisonment up to six months or both.
Section 19. Monthly return for buyer, exporter, importer, broker and warehouse Section 19(1) Every tea buyer, exporter, importer and broker shall, not later than the fourteenth day of each month, complete and submit to the Authority a return in Form AFA\TD\L set out in the First Schedule. Section 19(2) The return submitted under subregulation (1) above shall include details of the teas bought in the previous month and the source and destination of such tea. Section 19(3) Every warehouseman shall, not later than the fifteenth day of January of every year, complete and submit to the Authority an Annual Statistical Return in Form AFA\TD\ M set out in the First Schedule. Section 19(4) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to a fine not exceeding twenty thousand shillings or to imprisonment to a period not exceeding six months or to both. - 20
REGISTRATION AND LICENSING PROVISIONS - 20. Cancellation of a Licence or Registration
AI-assisted research summary: Applicants for registration as tea buyers, exporters, importers, brokers, packers or auction organizers must start operations within one year of their registration certificate; the Authority must give affected persons an opportunity to be heard before cancelling, suspending or varying a licence or registration; aggrieved persons may appeal to the Cabinet Secretary within thirty days.
Section 20. Cancellation of a Licence or Registration Section 20(1) A person who applies to be registered as a tea buyer, exporter, importer, broker, packer or auction organizer shall commence operations within one year from the date of issuance of a registration certificate. Section 20(2) A registration certificate issued to tea buyer, exporter, importer, broker, packer or auction organizer shall lapse if the holder of the registration certificate does not commence operations within one year from the date of issuance. Section 20(3)(a) fails to comply with the provisions of the Act and these Regulations; Section 20(3)(b) breaches or fails to comply with the terms and conditions of the licence; Section 20(3)(c) fails to comply with a lawful requirement or demand given by the Authority; or Section 20(3)(d) commits an offence under the Act or in respect of the licensed or registered activity under any other law. Section 20(4) Before the Authority cancels, suspends or varies a licence or registration certificate, it shall give the person to be affected by such action an opportunity to be heard. Section 20(5) A person who is aggrieved by the decision of the Authority in respect of a grant, refusal, renewal or variation of a licence or registration certificate may appeal to the Cabinet Secretary within thirty days from the date on which the applicant received notice of the decision. - 21
REGISTRATION AND LICENSING PROVISIONS - 21. Registration or a management agent
AI-assisted research summary: Requires persons intending to operate as management agents to apply for registration (or renewal) in a specified form; the Authority must issue registration certificates; management agents must submit annual returns; contravening the regulation is an offence with penalties under section 37 of the Act.
Section 21. Registration or a management agent Section 21(1) A person who intends to carry on the business of a Management agent shall apply to the Authority for registration or renewal of their registration in Form AFA\TD\N1 set out in the First Schedule. Section 21(2) The Authority shall issue a registration certificate to a management agent in Form AFA\TD\N2 as set out in the First Schedule. Section 21(3) Every management agent shall submit annual returns to the Authority and a copy to the respective county government in Form AFA\TD\N3 set out in the First Schedule. Section 21(4) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 22
REGISTRATION AND LICENSING PROVISIONS - 22. Management Agent Agreement
AI-assisted research summary: Rules governing management agent agreements for tea factories: who may engage agents, requirements for agents to sign contracts, that management agents must bear seconded staff costs, company secretary services are excluded from agent services to smallholder factories, directors/affiliates of agents must not serve or have direct commercial relationships with client factories, and contraventions are offences punishable under section 37 of the Act.
Section 22. Management Agent Agreement Section 22(1) A person who intends to manufacture or deal in tea may engage the services of a management agent upon such terms and conditions as may be agreed in the management agreement between them. Section 22(2) A management agent shall sign a management agreement or contract with each tea factory limited company that they intend to offer management agent services to. Section 22(3) Provided that a management agent agreement between a smallholder tea factory limited company and the management agent shall be for a period not exceeding five (5) years and the remuneration for services rendered by the management agent shall not exceed one point five percent (1.5%) of the net sales value of the tea sold at the auction per year. Section 22(4) Notwithstanding the provisions of subregulation (3) above staff costs for personnel seconded to the smallholder tea factory limited company by the management agent shall be borne by the management agent and not directly by the respective factory. Section 22(5) Company Secretary Service shall be excluded from services to be offered by a management agent to a smallholder tea factory limited company. For avoidance of doubt smallholder tea factory limited companies shall recruit their own in-house Company Secretaries or outsource the service. Section 22(6) A director or affiliate of a management agency service provider shall not serve as a director or have any direct commercial relationship with the tea factory limited company that they offer management agency services. Section 22(7) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 23
REGISTRATION AND LICENSING PROVISIONS - 23. Application for registration as an auction organizer
AI-assisted research summary: Persons wishing to operate as tea auction organizers must apply to the Authority in Form AFA\TD\P; the Authority must issue or renew registration certificates in Form AFA\TD\Q; all registered organizers must have an electronic trading platform, and existing organizers must do so within two months of commencement.
Section 23. Application for registration as an auction organizer Section 23(1) A person who intends to carry on the business of a tea auction organizer shall apply for registration to the Authority or renew their registration in Form AFA\TD\P set out in the First Schedule. Section 23(2) The Authority shall issue a certificate of registration to or renew a certificate of registration of a Tea Auction Organizer in Form AFA\TD\Q set out in the First Schedule. Section 23(3) All registered tea auction organizers shall establish an electronic trading platform for auction of tea. Section 23(4) Notwithstanding the requirement of sub regulation (3) above, any tea auction organizer existing before coming into operation of these regulations shall establish an electronic trading platform for the auction of teas within a period of two (2) months from the date of commencement of these regulations - 24
REGISTRATION AND LICENSING PROVISIONS - 24. Auction Operations
AI-assisted research summary: Rules for tea auction operations: which teas must be auctioned, buyer guarantees and payments, registration and broker limits, remittance timing, smallholder payment obligations, and powers for the Cabinet Secretary to issue guidelines or sanction actors.
Section 24. Auction Operations Section 24(1) All teas processed and manufactured in Kenya for the export market with the exception of orthodox and purple teas shall, within two (2) months from the commencement date of these regulation, be offered for sale exclusively at the tea auction floor. Section 24(2) Any tea not sold at the auction shall be re-listed for sale during a subsequent auction. Section 24(3) All buyers at the auction shall prior to the auction submit to the Authority a performance bond equivalent to 10% of the estimated value of the tea or teas they intend to buy at the auction in the form of a bank guarantee from a licensed commercial bank within the meaning of the Banking Act in Kenya. Section 24(4) The estimated value of tea or teas referred to in subregulation (3) shall be based on a three (3) month weighted average value of tea or teas the buyer has bid and won at the auction over a three-month period preceding the auction. Section 24(5) For avoidance of doubt, a buyer who fails or refuses to pay in full and collect the teas they have bid and won at the auction shall forfeit the 10% performance bond. Section 24(6) The monies accruing from a performance bond under subregulation 5 above shall be forfeited to the seller of the teas. Section 24(7) A buyer shall pay in full (100%) the value of the tea bids they have won at the auction before collecting and/or taking custody of the tea or teas. Section 24(8) All tea factory limited companies shall register and enlist with the Authority and the auction organizer to participate in the tea auction directly. For avoidance of doubt, management agency service providers or other service providers in the tea value chain shall not register and/or enlist at the auction on behalf of factory limited companies. Section 24(9) A registered broker shall offer tea brokerage services to a maximum of fifteen (15) tea factory limited companies at the auction. Section 24(10) Notwithstanding the requirement of subregulation (9) above, brokers that are already registered and in operation before the commencement date of these regulations shall continue to offer their services under the existing arrangement until their current annual registration is due for renewal by the Authority. Section 24(11) Tea brokers, buyers and the auction organizer shall ensure that the proceeds from the sale of tea are remitted to the tea factory limited company accounts within fourteen (14) days from the date of the auction less the agreed commissions for brokers. Section 24(12) Smallholder tea factory limited companies shall within thirty (30) days of receipt of the proceeds of the sale of tea pay tea growers at least 50% of payment due for green leaf delivered every month. Section 24(13) The payment of the balance due to the tea grower shall be made by a smallholder tea factory limited company within the financial or calendar year as shall be agreed with the tea growers. Section 24(14) The Cabinet Secretary may on his motion as provided by Section 40 of the Crops Act issue further guidelines and operation procedures on the organization, rules, regulations, management and governance structures for tea auctions in furtherance of competition, good governance, auction efficiency, transparency and price discovery. Section 24(15) The Cabinet Secretary may take further administrative action or other lawful sanctions against a tea broker, tea factory limited company, buyer/exporter, importer and any other player at the tea auction for any actions that undermine the proper, efficient, competitive and transparent operation of the auction process. Section 24(16) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 25
REGISTRATION AND LICENSING PROVISIONS - 25. Approval of trading rules and regulations
AI-assisted research summary: Auction organizers must restrict membership to persons registered by the Authority; ensure members sell only teas they are licensed to manufacture; ensure participating members hold valid licences and registration certificates; submit monthly reports by the 14th of each month; and notify the Authority at least 14 days before suspending trading. The Cabinet Secretary must satisfy himself of legal compliance before approving trading rules.
Section 25. Approval of trading rules and regulations Section 25(1) Auction trading rules and regulations shall be submitted to the Cabinet Secretary for approval before application. Section 25(2) Any changes to the trading rules and regulations of the auction organizer made within the course of the year shall be submitted to the Cabinet Secretary for approval. Section 25(3) The Cabinet Secretary shall, before approving the trading rules and regulations, satisfy himself that they are in compliance with the provisions of the Crops Acts (Cap. 318), the Competition Act (Cap. 504) and any other relevant written law. Section 25(4)(a) the carrying on of the tea auction generally and details of trading clearing and settlement systems proposed to be used by the auction organizer; Section 25(4)(b) mechanisms put in place to prevent market abuse practices; Section 25(4)(c) reasonable access to all registered members to participate at the auction; Section 25(4)(d) mechanisms for effectively investigating breaches of the trading rules, enforcing the trading rules and providing for appeals; Section 25(4)(e) reporting procedures to the Authority whenever it rejects any application for membership, where it suspends or expel a member or where it suspends trading; Section 25(4)(f) Procedures for expulsion, suspension or disciplinary action against members for conduct inconsistent with just and equitable principle relating to trading in tea or for contravention of the trading rules and regulations. Section 25(4)(g) the clear demarcation of roles and responsibilities of the board, chief executive officer and the committees of the board; Section 25(4)(h) the appointment of directors and a fair representation of persons in the selection of members of the board and administration of its affairs including professions relevant to the tea industry; Section 25(4)(i) the powers of the chief executive officer including in emergency situations; Section 25(4)(j) provide for the governance of the conduct of activities of its members, including their responsibility to act with integrity. Section 25(4)(k) Mechanisms to ensure that there is no conflict of interest in dealings amongst its members. Section 25(4)(l) Mechanisms for engagement and consultations with all its members and other relevant stakeholders. Section 25(5) An auction organizer shall not admit into their membership persons who are not registered by the Authority. Section 25(6) The auction organizer shall ensure that members shall only offer for sale at the auction the type of teas for which they are licensed to manufacture. Section 25(7) An auction organizer shall ensure that only members who have valid licenses and registration certificates from the Authority participate in the auction. Section 25(8) An auction organizer shall not later than the fourteenth day of each month submit to the Authority a monthly tea auction report of all teas sold through the auction in the previous month in Form AFA\TD\R as set out in the First Schedule. Section 25(9) An auction organizer shall notify the Authority of any intention to suspend trading at the auction at least fourteen days before the intended suspension. Section 25(10) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 26
REGISTRATION AND LICENSING PROVISIONS - 26. Additional information
AI-assisted research summary: The Authority or the County Government may require an applicant for a licence or registration certificate to provide any additional information it considers necessary to determine the application.
Section 26. Additional information Section The Authority or the County Government as the case may be, may require an applicant for a licence or registration certificate specified under these Regulations, to provide any additional information that it considers necessary to determine the application. - 27
REGISTRATION AND LICENSING PROVISIONS - 27. Register and publication of names and particulars
AI-assisted research summary: The Authority must keep a register of all persons registered and licensed under these Regulations and may publish that register in any manner it determines.
Section 27. Register and publication of names and particulars Section The Authority shall maintain a register of all persons registered and licensed under these Regulations and may publish the register in such manner as it may determine. - 28
REGISTRATION AND LICENSING PROVISIONS - 28. Fees and charges
AI-assisted research summary: Sets fees for licences/registrations as per the Second Schedule; requires tea brokers, auction organizers and management agents to notify the Authority annually of fees and commissions; allocates specified percentage shares for fees between the tea factory company and buyer/exporter; requires the Authority to collate and share notified information with county governments annually.
Section 28. Fees and charges Section 28(1) The fees to be charged for a licence, registration certificate or renewal issued under these Regulations shall be as set out in the Second Schedule. Section 28(2) All tea brokers, tea auction organizers and management agents shall notify the Authority of fees and commissions charged for services rendered annually during application of renewal of registration. Section 28(3)(a) Zero point two percent (0.2%) shall be borne by the tea factory limited company. Section 28(3)(b) Zero point five five percent (0.55%) shall be borne by the buyer/exporter. Section 28(4) The Authority shall collate the information on fees and commissions charged notified to them under regulation (2) above and share the information with the relevant county governments annually. - 29
REGISTRATION AND LICENSING PROVISIONS - 29. Tea export declaration
AI-assisted research summary: Exporters must declare all tea exports to the Authority before export using Form AFA\TD\S in the First Schedule.
Section 29. Tea export declaration Section 29(1) An exporter shall declare all their tea exports with the Authority before export in Form AFA\TD\S set out in the First Schedule. Section 29(2) An exporter shall ensure that all teas designated for export conform to Kenyan Standards on quality, food safety and hygiene, sanitary and phytosanitary regulations and maintain the relevant documents for inspection by the Authority. Section 29(3) The Authority may inspect any tea destined for exports for purposes of ascertaining whether the provisions of the Act, these Regulations or the terms and conditions of the respective licence or registration are being complied with. Section 29(4) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 30
REGISTRATION AND LICENSING PROVISIONS - 30. Transit tea
AI-assisted research summary: Exporters or importers must comply with customs transit-shipment rules for transit tea and keep documents for inspection; exporting or importing in contravention is an offence punishable as prescribed under section 37 of the Act.
Section 30. Transit tea Section 30(1) An exporter or importer shall comply with the relevant customs laws and regulations on transit-shipment of goods in handling transit teas and maintain the relevant documents for inspection by the Authority. Section 30(2) Any person who exports or imports tea in contravention of these Regulations commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 31
REGISTRATION AND LICENSING PROVISIONS - 31. Registration of a tea importer
AI-assisted research summary: People intending to import tea must apply to the Authority for registration or renew their registration and pay the fee; the Authority must issue a registration certificate in the specified form.
Section 31. Registration of a tea importer Section 31(1) A person who intends to carry on the business of importing tea shall apply to the Authority for registration or renew their registration in Form AFA\TD\ T set out in the First Schedule upon payment of the fee set out in the Second Schedule. Section 31(2) The Authority shall issue a registration certificate to a tea importer in Form AFA\TD\U as set out in the First Schedule. - 32
REGISTRATION AND LICENSING PROVISIONS - 32. Tea Imports
AI-assisted research summary: Persons intending to import tea into Kenya must obtain pre-import approval from the Authority, provide specified documents and samples, and comply with certification, declaration, re-export and value-add rules; the Authority may verify documentation, analyse teas and issue approvals; non-conforming imports face rejection, seizure, destruction or re-export and contravention is an offence.
Section 32. Tea Imports Section 32(1) A person who intends to import tea into Kenya shall apply for pre-import approval to the Authority in Form AFA\TD\V1 as set out in the First Schedule. Section 32(2)(a) provide evidence that the teas they intend to import are not available in the local market or at the tea auction; Section 32(2)(b) provide a sample of the teas to be imported and pre-import verification certificate from the country of origin; and Section 32(2)(c) obtain pre-import approval from the Authority. Section 32(3)(a) a certificate of origin; Section 32(3)(b) a sanitary and phytosanitary certificate; and Section 32(3)(c) a certificate of analysis on pesticide residues issued by a competent authority from the country of origin. Section 32(4) An importer shall not import tea into Kenya without a valid certificate of conformity to Kenya Tea Standards from an accredited institution from the country of origin. Section 32(5) The Authority shall verify pre-import documentation on tea intended for importation and issue a pre-import approval in the manner prescribed in Form AFA\TD\V2 in the First Schedule. Section 32(6) An importer shall upon obtaining pre-import approval declare the imports made with the Authority and make a return on all transactions to the Authority in Form AFA\TD\W as set out in the First Schedule. Section 32(7) The Authority may conduct an analysis of teas intended for importation or imported into the country from time to time to ensure conformity to Kenya tea standards. Section 32(8) Any imported tea that does not conform to the requirements set out in subregulations (1), (2) and (3) shall be rejected, seized or destroyed by the Authority or be re-exported to the country of origin at the cost of the importer. Section 32(9) An importer shall not import tea into Kenya except and in accordance with pre- import approval issued by the Authority. Section 32(10)(a) tea imports for sale through the Mombasa tea auction; and Section 32(10)(b) transit teas. Section 32(11) An importer who imports tea into Kenya for blending or export shall re-export the tea within a period of six months of the date of import and proof of such re-export shall be maintained for inspection by the Authority. Section 32(12) An importer who imports bulk tea into Kenya for re-export shall value add at least twenty percent of the re-export quantity. Section 32(13) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 33
REGISTRATION AND LICENSING PROVISIONS - 33. Declaration of export and import consignments
AI-assisted research summary: Tea exporters and importers must declare information on all export and import consignments to the Authority in Form AFA/TD/X or AFA/TD/W set out in the First Schedule.
Section 33. Declaration of export and import consignments Section 33(1) Every tea exporter or importer shall declare information on all export and import consignments to the Authority in Form AFA/TD/X or AFA/TD/W set out in the First Schedule. Section 33(2) A tea exporter or importer who provides false information under these Regulations commits an offence and shall be liable upon conviction to the penalty prescribed under Section 37 of the Crops Act (Cap. 318). - 34
REGISTRATION AND LICENSING PROVISIONS - 34. Release order
AI-assisted research summary: The Authority must verify customs documentation for tea exports or imports and issue the specified release order; it must not issue a release order if the exporter or importer breaches the Act or Regulations, and it may cancel a release or approval order on such contravention.
Section 34. Release order Section 34(1) The Authority shall verify customs documentation on Release order, exports or imports of any tea consignment and issue an import or export release Order in Form AFA\TD\Y as set out in the First Schedule. Section 34(2) The Authority shall not issue a release order if an exporter or importer is in contravention of the provisions of the Act or any Regulations made thereunder. Section 34(3) The Authority may cancel the export or import release or approval order if an exporter or importer contravenes the provisions of the Act or any Regulations made there under. - 5
REGISTRATION AND LICENSING PROVISIONS - 5. Registration of a commercial tea nursery
AI-assisted research summary: Persons intending to establish a commercial tea nursery must apply to the County Government using Form AFA\CG\A1; the County Government must issue a registration certificate in Form AFA\CG\A2; commercial tea nurseries must submit annual returns to the County government with a copy to the Authority in Form AFA\CG\A3.
Section 5. Registration of a commercial tea nursery Section 5(1) A person who intends to establish a commercial tea nursery shall apply for registration to the County Government where they intend to establish the tea nursery in Form AFA\CG\A1 as set out in the First Schedule. Section 5(2) The County Government shall issue a registration certificate to a commercial tea nursery in Form AFA\CG\A2 as set out in the First Schedule Section 5(3) A commercial tea nursery shall submit annual returns to the respective County government with a copy to the Authority in Form AFA\CG\A3 as set out in the First Schedule. - 6
REGISTRATION AND LICENSING PROVISIONS - 6. Registration of a tea grower
AI-assisted research summary: Section 6 sets rules for registration and trading of green leaf: smallholder and plantation tea growers may apply for registration; tea factories must keep and submit registers annually; persons and growers are prohibited from selling or buying green leaf except to the registered tea factory; violations are offences with penalties under Section 37 of the Crops Act.
Section 6. Registration of a tea grower Section 6(1) A smallholder tea grower may apply for registration to a tea factory limited company where they deliver green leaf as provided in section 14(1)(b) of the Act in Form AFA\CG\B1 set out in the First schedule. Section 6(2) A tea factory limited company shall maintain a register of all growers who supply green leaf to it and submit a copy of the register to the respective County Government and to the Authority not later than the fifteenth day of January of every year. Section 6(3) A person shall not sell green leaf unless the person is a tea grower as defined under Regulation 2 of these regulations. Section 6(4) No person shall buy green leaf from a tea grower other than the tea factory limited company where the grower is registered. Section 6(5) A tea grower shall not sell green leaf to any person other than to the tea factory limited company where they are registered. Section 6(6) For avoidance of doubt any tea grower who sells green leaf to any person other than to the tea factory limited company where they are registered commits an offence. Section 6(7) A plantation tea grower may apply for registration to the Authority as provided in section 14(2) of the Act in Form AFA\CG\B3 set out in the First schedule. Section 6(8) The Authority shall issue a certificate of registration to a plantation tea grower registered under sub regulation (5) in Form AFA\CG\B4 as set out in the First Schedule. Section 6(9) A person who contravenes the provisions of subregulation (2), (3), (4) (5) and (6) of this regulation commits an offence and shall be liable upon conviction to the penalties prescribed under Section 37 of the Crops Act. - 7
REGISTRATION AND LICENSING PROVISIONS - 7. Double registration
AI-assisted research summary: Smallholder tea growers cannot register the same parcel of tea land with more than one tea factory at the same time; limited exceptions allow multiple registrations for different tea types, and there are notice, registration-change, and release procedures, with penalties for contravention.
Section 7. Double registration Section 7(1) A smallholder tea grower shall not register their parcel of land planted with tea to more than one tea factory limited company at a time. Section 7(2) Where subdivision has been carried out but separate titles deeds have not been issued, proof of such subdivision from the registered owner of the land shall be provided to the tea factory limited company. Section 7(3) Notwithstanding subregulation (1) above, a tea grower may register a parcel of land planted with more than one type of tea to more than one factory at a time for the purpose of processing of the different teas. Section 7(4) A tea grower wishing to change the factory where they deliver green leaf shall inform their respective factory by giving a minimum of a one months' notice or in accordance with the notification period specified in the Green Leaf Agreement. Section 7(5) Where an objection is made to the notice issued under subregulation (4), the matter shall be resolved in the manner set out in the Green Leaf Agreement. Section 7(6) A factory that receives a notice from a tea grower shall within one month of the receipt of the notice release the grower subject to the grower clearing any outstanding dues with the factory. Section 7(7) Any change in the particulars supplied by the grower for purposes of registration in accordance with subregulation (1) shall be notified to the factory in writing. Section 7(8) Where the factory has reasonable cause to believe that a person whose particulars are so recorded has ceased to be a grower, it may, after giving that person written notification of its intention to do so, remove the name of such person from the register. Section 7(9) The register referred to in regulation 6(3) shall be prima facie proof of the fact that a person is a registered tea grower with the factory. Section 7(10) A person who contravenes the provisions of this regulation commits an offence and shall be liable on conviction to a fine not exceeding twenty thousand Kenya shillings or to imprisonment for a term not exceeding six months or both. - 8
REGISTRATION AND LICENSING PROVISIONS - 8. Green Leaf Agreement
AI-assisted research summary: A tea factory limited company must sign a Green Leaf Agreement with its registered tea growers in the form set out in the First Schedule.
Section 8. Green Leaf Agreement Section 8(1) A tea factory limited company shall sign a Green Leaf Agreement with their registered tea growers as provided in Form AFA\TD\C set out in the First Schedule. Section 8(2) The parties to the Green Leaf Agreement under subregulation (1) may include such additional terms and conditions as they may deem fit. - 9
REGISTRATION AND LICENSING PROVISIONS - 9. Tea manufacturing licence
AI-assisted research summary: Sets licensing and registration rules for tea manufacturing: applications and fees, documentation and eligibility (hectares), Authority decision timelines, construction and commissioning deadlines, prohibitions, and powers to seize non-compliant installations.
Section 9. Tea manufacturing licence Section 9(1) A person who intends to manufacture tea or renew a tea manufacturing licence, as the case may be, shall apply to the Authority in Form AFA\TD\D I set out in the First Schedule and pay the fee set out in the Second Schedule. Section 9(2) The Authority shall after consultation with the county executive committee member issue a manufacturing licence to the applicant in Form AFA\TD\D2 set out in First Schedule. Section 9(3) A person who intends to manufacture high value specialty teas or renew their cottage tea manufacturing licence shall apply to the Authority in Form AFA\TD\El set out in the First Schedule. Section 9(4)(a) furnish the Authority with a feasibility study of the proposed cottage tea manufacturing factory. Section 9(4)(b) furnish the Authority with a certified copy of the growers' register. Section 9(4)(c) demonstrate adequate financial capacity to construct the cottage tea factory and commence operations. Section 9(4)(d) Where a cottage tea manufacturing factory intends to use wood as a source of energy, the applicant shall furnish the Authority with a wood fuel sustainability plan equivalent to the ratio of 4:1 tea planted to woodlots planted. Section 9(5) The Authority shall issue cottage tea manufacturing licence in Form AFA\TD\E2 set out in the First Schedule. Section 9(6) While issuing a manufacturing licence or cottage tea manufacturing licence to a new applicant, the Authority shall have due regard to the current National Processing Capacity Survey. Section 9(7) A person shall only be issued with a manufacturing licence or cottage tea manufacturing licence for a new factory if the person has at least two hundred and fifty hectares of planted tea bushes or twenty hectares in the case of cottage manufacture. Section 9(8) Notwithstanding the provisions of subregulation (7) where a group of persons make a joint application, they may be issued with a manufacturing license if they have at least two hundred and fifty hectares of planted tea bushes or twenty hectares for cottage manufacture and the parcels of land are within a fifty kilometre radius of each other. Section 9(9) Before the issuance of a manufacturing licence or cottage tea manufacturing licence, the Authority shall satisfy itself that the applicant has complied with the provisions of the Act, these Regulations and any other relevant law. Section 9(10) The Authority shall, after considering an application for a manufacturing licence or cottage tea manufacturing licence under this regulation, communicate its decision to the applicant within ninety days of the application. Section 9(11) An applicant for a manufacturing or a cottage tea manufacturing licence who is issued with such licence shall construct and commission the tea factory within three years from the date of issuance of licence. Section 9(12) A licence issued to a tea manufacturer or cottage tea manufacturer shall lapse if the holder of the licence does not commission the factory within three years from the date of issuance. Section 9(13) A person shall not commence construction of a tea factory without a valid manufacturing licence from the Authority. Section 9(14) A holder of a manufacturing licence or cottage tea manufacturing licence shall not vary the type of tea manufacture and granted processing capacity of their licence without prior approval of the Authority. Section 9(15) The Authority shall seize and remove or order the removal of any manufactured tea or processing capacity where it has reasonable grounds to believe that the processing capacity has been installed contrary to the conditions of the licence issued under these Regulations. Section 9(16) A holder of a manufacturing licence shall facilitate remittance of contributions to duly registered organizations pursuant to any agreements entered between the tea growers and those organizations. Section 9(17) A holder of a manufacturing licence or cottage tea manufacturing licence shall furnish the authority with a certified copy of their growers register as may be required by the Authority from time to time. Section 9(18) Before the issuance or renewal of a manufacturing license or cottage tea manufacturing license for a smallholder tea factory limited company the Authority shall satisfy itself that the applicant has a procurement policy providing for competitive procurement of goods and services including but not limited to management agency services, fertilizer, machinery & equipment, warehousing and transportation of tea. Section 9(19) A tea factory limited shall maintain a register of all its contracted green leaf transporters and the register shall be availed for inspection to the Authority. Section 9(20) All green leaf transporters shall comply with the tea industry code of Practice, the public health act and any other relevant laws. Section 9(21) A person who contravenes the provisions of this regulation commits an offence.
Part III
QUALITY ASSURANCE
- 35
QUALITY ASSURANCE - 35. Appointment of Crop Inspectors
AI-assisted research summary: The Authority must appoint crop inspectors to inspect all tea for conformity with these Regulations and relevant regional and international standards.
Section 35. Appointment of Crop Inspectors Section 35(1) The Authority shall appoint crop inspectors to carry out inspection of all tea to check for conformity with these Regulations and other relevant regional and international standards. Section 35(2)(a) is a Kenyan citizen; Section 35(2)(b) meets the requirements of Article 10 and Chapter 6 of the Constitution; and Section 35(2)(c) a diploma in agriculture, food science, marketing or related fields with professional training on audits, inspections or related fields from a recognized Institution and a minimum of five years of relevant experience; or Section 35(2)(c)(i) a diploma in agriculture, food science, marketing or related fields with professional training on audits, inspections or related fields from a recognized Institution and a minimum of five years of relevant experience; or Section 35(2)(c)(ii) a bachelor's degree holder in agriculture, food science, commerce, economic, marketing or related fields with professional training on audits, inspections or related fields from a recognized institution and a minimum of three years' relevant experience. Section 35(3) In the exercise of the powers of entry and inspection, crop inspectors shall be guided by the provision of sections 28, 29 and 30 of the Act. - 36
QUALITY ASSURANCE - 36. Tea Standards
AI-assisted research summary: Sets quality and hygiene rules for tea: persons and businesses dealing in tea must comply with national, regional and international standards and specific Tea Industry Codes; tea factories must provide and keep designated green leaf collection centres (including minimum distance of 250 metres from another factory's collection/buying centre); authorities (County Government and the Authority) must inspect, surveil and audit compliance; certain actions (e.g. pouring leaf on bare ground) are prohibited; the Authority may carry out quality analyses; contraventions of listed subregulations are offences subject to penalties under section 37.
Section 36. Tea Standards Section 36(1) All persons dealing in tea shall comply with the national, relevant regional and international Standards. Section 36(2) All green leaf transporters, tea dealers, manufacturers, or importers shall comply with national tea standards and the Tea Industry Code of Practice KS: 2128. Section 36(3) A tea factory limited company shall construct suitable and clearly designated green leaf collection centres and shall ensure that the centres comply with Tea Industry Code of Practice KS: 2128, the Public Health Act and any other relevant law. Section 36(4) A tea factory limited company shall construct its green leaf collection centre at least 250 metres away from the green tea leaf collection or buying centre of another tea factory. Section 36(5) Every tea factory company limited shall collect green leaf green leaf from its designated green leaf collection centres only. Section 36(6) The relevant County Government shall carry out inspections on tea buying or collection centres to monitor compliance with the set national tea standards, relevant regional and international standards, the Crops Act, these regulations and any other relevant laws. Section 36(7) All harvested leaf shall be collected or spread on clean canvas material, wooden tables or concrete tables at the leaf collection or buying centres to maintain the green tea leaf clean and free from any contamination and allow free air circulation. Section 36(8) Harvested green leaf shall not be poured on bare uncovered ground, grass or open soil. Section 36(9) The Authority shall, before licensing or renewing the license of a commercial green leaf transporter, satisfy themselves that the applicant has complied with the provisions of the Act, the Tea Industry Code of Practice KS: 2128, the Traffic Act, the Public Health Act and any other relevant law. Section 36(10) The Authority shall regularly carry out surveillance to ascertain compliance with these tea regulations, the national tea standards, applicable international standards and any other relevant laws Section 36(11) The Authority may carry out quality analysis on made tea and tea products as it may deem necessary from time to time. Section 36(12) The Authority shall conduct compliance monitoring audits on persons dealing in tea. Section 36(13) A person who contravenes regulation 36 (1), (2), (3), (4), (5), (7) and (8) commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 37
QUALITY ASSURANCE - 37. Prohibition of Import and export of tea seed or plants
AI-assisted research summary: Persons must not import or export tea seed, living tea plants, or living parts of tea plants capable of propagation without authorization by the Authority.
Section 37. Prohibition of Import and export of tea seed or plants Section 37(1) A person shall not import or export any tea seed, or any living tea plants, or any living parts of tea plants which are capable of use for the propagation of tea, without authorization by the Authority. Section 37(2) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act. - 38
QUALITY ASSURANCE - 38. Declaration of blended teas
AI-assisted research summary: If a person blends Kenyan tea with tea produced outside Kenya, they must declare the percentage of Kenyan tea on the packaging and on the blend sheet.
Section 38. Declaration of blended teas Section 38(1) A person who blends any or various grades of tea produced in Kenya with any other tea produced outside Kenya shall declare the percentage of Kenyan tea on the packaging and on the blend sheet. Section 38(2) A person who contravenes this regulation commits an offence and shall be liable upon conviction to the penalties prescribed under section 37 of the Act.
Part IV
GENERAL PROVISIONS
- 39
GENERAL PROVISIONS - 39. Imposition of fees by the county governments
AI-assisted research summary: County Government shall not impose any fees on tea contrary to section 17 (3) of the Act.
Section 39. Imposition of fees by the county governments Section A County Government shall not impose any fees on tea contrary to section 17 (3) of the Act. - 40
GENERAL PROVISIONS - 40. Transferability of licence or registration certificate
AI-assisted research summary: Licences or registration certificates issued under these Regulations may not be transferred to third parties.
Section 40. Transferability of licence or registration certificate Section A licence or registration certificate issued by the Authority or the County Government under these Regulations shall not be transferable to third parties. - 41
GENERAL PROVISIONS - 41. Validity of licences and registration certificates and late application
AI-assisted research summary: The Authority may consider late renewal applications if the applicant gives reasonable cause and, if approved, the applicant must pay a late fee equal to 50% of the payable fees.
Section 41. Validity of licences and registration certificates and late application Section 41(1) All licences and registration certificates issued under these Regulations shall expire on the thirtieth day of June of each year. Section 41(2) An application for a renewal of a licence or registration certificate shall be made at least one month prior to the expiry of such licence or registration certificate: Provided that, where an application for a renewal of a licence or registration is made, the licence or registration shall be deemed to continue in force until the application for renewal is determined. Section 41(3) The Authority may consider late application for renewal upon an applicant giving reasonable cause for the delay and upon approval for such application, the applicant shall pay a late application fee of 50% of the fees payable. - 42
GENERAL PROVISIONS - 42. Revocation of licenses and certificate of registration
AI-assisted research summary: Revocation can occur where a person or entity fails to comply with the regulations or the conditions in their certificate of registration.
Section 42. Revocation of licenses and certificate of registration Section fails to comply with these regulations or the conditions set out in the certificate of registration; or - 43
GENERAL PROVISIONS - 43. No compensation for revocation, variation or suspension of licence or registration
AI-assisted research summary: If a licence or registration is revoked, varied or suspended under these Regulations, the holder of the licence or registration certificate may not claim compensation or damages from the Authority or Government.
Section 43. No compensation for revocation, variation or suspension of licence or registration Section Where a licence or registration is revoked, varied or suspended under these Regulations, the holder of the licence or registration certificate shall not be entitled to claim from the Authority or Government for any compensation or any damages occurring as a result of such revocation, variation or suspension. - 44
GENERAL PROVISIONS - 44. Appeal process for denial or refusal of registration or licensing
AI-assisted research summary: An applicant aggrieved by an Authority decision may appeal to the Cabinet Secretary; the appeal must be in writing and delivered within 30 days, and the Cabinet Secretary must respond within 45 days.
Section 44. Appeal process for denial or refusal of registration or licensing Section 44(1) An applicant for registration or a license who is aggrieved by the decision of the Authority in respect of the grant, refusal of renewal, variation or revocation or the conditions imposed thereof may appeal to the Cabinet Secretary for review of the decision of the Authority. Section 44(2) The appeal shall be in writing and be delivered to the cabinet secretary within 30 days from the date of notification of the decision by the Authority. Section 44(3) The Cabinet Secretary shall consider the appeal and give a written feedback to the affected party within 45 days of receipt. - 45
GENERAL PROVISIONS - 45. Dispute Resolution between growers and other crop dealers
AI-assisted research summary: Rules for arbitration of disputes between a grower and a tea dealer: aggrieved parties (or their advocates) may notify disputes in writing to an arbitrator and such notifications must include copies of relevant documents; aggrieved parties may agree procedure for arbitration; if they do not agree, the arbitrator may conduct the arbitration as they consider appropriate.
Section 45. Dispute Resolution between growers and other crop dealers Section 45(1) An agreement to refer a dispute between a grower and a tea dealer for arbitration under this regulation may be in the form of an arbitration clause in a contract or in the form of a separate agreement. Section 45(2) A dispute arising between a grower and other tea dealers may be notified in writing presented by the aggrieved party or their advocate to an arbitrator and shall have attached thereto copies of the relevant documents relating to the dispute. Section 45(3) The aggrieved parties are free to agree on the procedure to be followed by the arbitrator in the conduct of the proceedings. Section 45(4) Failing an agreement under subregulation (3) the arbitrator may conduct the arbitration in the manner they consider appropriate, having regard to the desirability of avoiding unnecessary delay or expense while at the same time affording the parties a fair and reasonable opportunity to present their cases. - 46
GENERAL PROVISIONS - 46. Modification of the forms
AI-assisted research summary: The licensing authority may modify the prescribed forms, including to allow electronic use.
Section 46. Modification of the forms Section The licensing authority may make such modifications, alterations or additions on the prescribed forms as may be required from time to time to enable effective use including the use of such forms electronically. - 47
GENERAL PROVISIONS - 47. General penalty
AI-assisted research summary: A person who commits an offence under these Regulations for which no penalty is prescribed is liable on conviction to a fine not exceeding five hundred thousand shillings, or to imprisonment not exceeding one year, or to both.
Section 47. General penalty Section A person who commits an offence under these Regulations, for which no penalty is prescribed shall be liable upon conviction, to a fine not exceeding five hundred thousand shillings or to a term of imprisonment not exceeding one year or to both in accordance with section 37 of the Act. - 50
GENERAL PROVISIONS - 50. Transitional Provisions
AI-assisted research summary: Licences and registrations that existed before these Regulations took effect remain valid until they expire; licences and registrations issued after will be under these Regulations.
Section 50. Transitional Provisions Section All licences and registrations existing before the coming into operation of these Regulations shall remain valid until their expiry, and subsequent licences and registrations shall be issued under these Regulations.
Provision text is displayed from LexChat’s stored statute record. Use the official source links to verify amendments, commencement, and current legal force.
Ask AI about this statute
The Crops (Tea Industry) Regulations
Sign in to ask AI about this statute
Sign in to start authenticated, citation-grounded statute research.
Sign in