The Coffee (General) Regulations

Section 4. Functions of the Authority Section 4(1) The Authority shall in the performance of its functions under these Regulations act through the Coffee Directorate, which shall carry out such activities and do such other things as are necessary to promote, develop and regulate the coffee industry for the benefit of coffee growers and the coffee industry. Section 4(2)(a) facilitate the issuance of coffee trade and manufacturing licenses; Section 4(2)(b) co-ordinate training programmes for players in the coffee value chain; Section 4(2)(c) enforce national regulations and quality standards in the coffee industry; Section 4(2)(d) collect, collate and maintain information and data base on the coffee industry including current and future production, processing, marketing and consumption; Section 4(2)(e) conduct market intelligence and promotion activities on Coffee both locally and internationally; Section 4(2)(f) establish Iinkages with various government agencies including county government and private research institutions for the conduct of studies and researches designed to promote the production, marketing, processing and consumption of coffee; Section 4(2)(g) develop and promot...

Section 5. Registration Section 5(1) Every coffee grower shall register with the County Governments and the Authority for purpose of data collection. Section 5(2) A grower who joins a co-operative society or any other association or legal entity, shall notify the Authority through that co-operative Society or other entity; Section 5(3) The Authority shall maintain up-to-date registers of all coffee co-operative societies, coffee associations, coffee estates and nursery operators.

Section 6. Application for a licence Section 6(1) Every person intending to engage in coffee business shall apply to the Authority or the County Government, as the case may be, using the respective application forms set out in the First Schedule, and shall be issued with the registration certificate or licence, as the case may be, in the corresponding forms set out in the same Schedule. Section 6(2) Every coffee dealer shall produce the certificate or licence respectively issued under subregulation (1) upon request by an inspector at all reasonable times. Section 6(3) The Authority shall maintain up-to-date records of all persons registered or licensed under this Regulation.

Section 7. Prohibition against operating without a licence Section 7(1)(a) buy, sell, pulp, mill, warehouse, export or otherwise deal in or transact any business in coffee unless he holds a current licence issued by the Authority or the respective County Government for that purpose; Section 7(1)(b) in the case of parchment, by the licensing authority of the respective county; or Section 7(1)(b)(i) in the case of parchment, by the licensing authority of the respective county; or Section 7(1)(b)(ii) in the case of clean coffee, by the Authority: Section 7(1)(a) where a grower applies for a licence under paragraph (a) in respect of own coffee, such licence shall be issued by the Authority without undue delay; and Section 7(1)(b) paragraph (b) shall not apply to a grower moving own coffee between the farm and the pulping station. Section 7(2) An application for a movement permit in respect of parchment shall contain evidence of the competitive sourcing of the miller or other service provider to whom the coffee is intended to be delivered.

Section 8. Issuance of Licences Section 8(1)(a) a coffee nursery certificate authorizing the holder to operate a coffee nursery; and Section 8(1)(b) a pulping station licence authorizing the holder to operate a pulping station who is a co-operative society, an association, a company or an estate grower. Section 8(2)(a) a coffee grower's milling licence authorizing the holder, being a co-operative society or other legal entity comprising growers, to pulp, mill, market or roast coffee; Section 8(2)(b) a commercial miller's licence authorizing the holder to conduct the business of milling coffee at a fee. Section 8(3)(a) a coffee roasters' licence authorizing the holder to conduct the business of roasting coffee for local sale or for export; Section 8(3)(b) a warehouseman's licence authorizing the holder to conduct the business of warehousing coffee; Section 8(3)(c) a coffee trader's licence authorizing the holder to buy clean coffee from the Exchange or import clean coffee from outside Kenya for processing in Kenya for sale locally or for export; Section 8(4) The licences issued under this Regulation shall be subject to such conditions as the issuing authority may prescribe. Section...

Section 9. Limitation of a coffee trader’s licence Section 9(1) A holder of a coffee trader's licence or any other entity associated with such holder shall not be licensed as a commercial miller or warehouseman. Section 9(2) The Authority may revoke any licence which is found to be held in contravention of subregulation (1).

Section 10. Conditions of licence Section 10(1) The issuance of the licences specified under these Regulations shall be subject to the applicants meeting the respective requirements for such issuance set out in Part A of the Second Schedule and payment of the applicable fees as specified in Part B of the same Schedule. Section 10(2) The Authority shall not issue a licence under these Regulations unless the person meets the conditions for licensing. Section 10(3) All licensees shall specify the premises upon which the business specified in the license shall be conducted. Section 10(4) Every licensed person shall comply with the Coffee Industry Code of Practice. Section 10(5) Every licensee shall submit a letter of undertaking to remit returns to the Authority. Section 10(6) A license holder who contravenes the terms and conditions of the licence shall be liable to have his licence suspended or revoked.

Section 11. Licensing procedure Section 11(1) The Authority may, after inspection and evaluation of an application received under these Regulations, grant the licence applied for or reject the application. Section 11(2) Where an application is rejected, the Authority shall notify the applicant accordingly, giving reasons for the rejection and pointing out the reasons leading thereto within fourteen days after the date of the decision of the Authority. Section 11(3) The applicant may resubmit an application following such rejection after addressing the issues raised in the notification from the Authority. Section 11(4) Where an application is rejected after resubmission under subregulation (3), the applicant may appeal to the Cabinet Secretary within thirty days after notification of the rejection by the Authority. Section 11(5) The Authority shall process the licences for successful applicants in accordance with the provisions of the Act.

Section 12. Duration of licences Section Licences issued by the Authority shall expire on the 30th June of every year and license holders wishing for renewal thereof may apply by 1st June preceding the expiry of the license.

Section 13. Movement permits Section 13(1) The movement of coffee shall be managed through the issuance of movement permits by the licensing authority of the respective county, provided that no movement permit shall be issued under these Regulations to any person other than a licensee, and the licensee shall not alter the particulars entered thereon. Section 13(2) No person shall move coffee or cause any coffee to be moved without an original movement permit issued by the Authority in accordance with subregulation (1). Section 13(3) Duplicate copies or photocopies of the original movement permit shall not be used for coffee movement. Section 13(4) Any vessel used for coffee transportation shall conform to Kenya Coffee Standards. Section 13(5) The movement permit for parchment from a pulping station operated by a Co-operative Society shall authorize such transportation to millers within the county or the next nearest miller in the interest of saving on costs. Section 13(6) The licensing authority shall monitor the movement of parchment coffee between stores and the movement of clean coffee and hulled buni to the market in order to ensure that the coffee is safe and to avoid any ille...

Section 14. Obligations of licensees Section 14(1) Licensees under these Regulations shall observe the obligations set out in the Third Schedule. Section 14(2) The obligations set out in the Third Schedule shall be implied in every contract between a grower and a grower's agent.

Section 15. Notification after planting or uprooting coffee Section 15(1) Every grower who plants or uproots coffee shall, within six months after doing so, notify the Authority or county government in writing of the area of coffee planted or uprooted for purposes of record. Section 15(2) Every grower who is a member of a co-operative society and who plants or uproots coffee shall, within three months of doing so, notify the co-operative society in writing of the area and number of trees planted or uprooted for purposes of record. Section 15(3) The co-operative society to which a report is made under subregulation (2) shall notify the Authority accordingly in every year after registering such details from the grower.

Section 16. Notification after change of details of farm or estate Section Any grower who changes the details of his farm or estate as registered with the Authority, whether on a subdivision of the estate or otherwise, shall report such changes to the Authority for purposes of record.

Section 17. Coffee Production and processing standards Section The Cabinet Secretary shall develop a coffee industry policy which shall articulate coffee production, processing and marketing practices towards adoption of modern coffee production and processing technology.

Section 18. Certification of Coffee Section 18(1) The Authority shall promote coffee certification schemes for Kenyan coffee. Section 18(2) The certification schemes operating within the coffee industry shall be registered with the Authority. Section 18(3) Certified coffee shall be identified and labelled according to the respective certification schemes for traceability. Section 18(4) Coffee growers and millers may seek certification to ensure quality of service and market confidence. Section 18(5) Certified coffees shall be declared by the miller in the sales catalogues and sold in accordance with Guidelines for the Sale of Certified Coffees as provided by the Exchange. Section 18(6) The standard coffee grades shall be as provided in the Fourth Schedule.

Section 19. Prohibition in issuance of coffee seeds or seedlings Section 19(1) No person, other than the Kenya Agricultural Livestock and Research Organization or its authorized agents operating laboratories or tissue culture units under their supervision, shall issue certified coffee seeds or seedlings for multiplication in any coffee nursery for distribution to any other grower or for export. Section 19(2) No person shall establish or operate a coffee nursery unless the person is registered with the respective county in consultation with the Authority. Section 19(3)(a) visits and inspects the site and is satisfied that the site is suitable for establishment of a nursery; and Section 19(3)(b) is satisfied that the nursery operator or their agents have adequate knowledge of nursery management and production techniques.

Section 20. Requirements relating to coffee milling Section 20(1)(a) a coffee grower or grower's co-operative society, under a coffee grower's milling licence, or Section 20(1)(b) a commercial miller under a commercial miller's licence. Section 20(2) Coffee milling shall only be conducted at premises that are specified as such in the register maintained by the Authority. Section 20(3) A miller shall ensure that the grower or grower's representative is notified and is present during the milling process. Section 20(4) A commercial coffee miller shall take out insurance cover against fire, theft and other risks for all coffee delivered for milling and for milled coffee which has not yet been handed over for marketing. Section 20(5) Every miller shall account for mill spillage or sweepings and all other coffee by-products to the Authority and the growers at such intervals and in such format as may be prescribed by the Authority. Section 20(6) The Authority shall from time to time prescribe the maximum proportion of milling losses allowable per parchment type and publicize the information in such a manner as to be easily accessible to the grower. Section 20(7) A grower who mills his own...

Section 21. Coffee marketing Section 21(1)(a) auction at the Exchange; and Section 21(1)(b) direct sales: Section 21(1)(a) the prices offered at the direct sales shall bear a favourable comparison to those offered by the Exchange; and Section 21(1)(b) the Exchange shall set aside one day in every fortnight for the trading of coffee by local traders. Section 21(2) The Authority shall set up a Pricing Committee comprising of seven members drawn from the National and county governments and the Exchange to propose indicative coffee prices based on the prices prevailing at the Exchange and in the international market and on the quality of coffee from the various coffee growing regions in the country.

Section 22. Coffee sales Section 22(1) A coffee estate, co-operative society or other association may undertake direct sales of clean coffee from a licensed coffee warehouse and shall notify the Authority accordingly. Section 22(2) The notification under subregulation (1) shall contain the details of the contract of sale. Section 22(3) Direct sales shall be conducted in accordance with guidelines issued by the Authority. Section 22(4) The proceeds of the sale of coffee by auction or by direct sales shall be deposited in a central depository unit established by the Exchange in consultation with the Authority and which shall operate in accordance with the trading rules of the Exchange.

Section 23. Sales Catalogue Section 23(1) Millers shall prepare a sales catalogue in consultation with the Exchange and growers for all the coffee transferred to a warehouse in accordance with the trading rules referred to in Regulation 22(4). Section 23(2) A sales catalogue shall contain the particulars set out in the Fifth Schedule.

Section 24. Coffee promotions Section 24(1) The Authority shall co-ordinate coffee stakeholders, including growers and marketers, for the holding of international events for the promotion of Kenyan coffee in the international arena. Section 24(2) Respective county governments may mobilize growers for centralized coffee marketing in the overseas markets and conduct promotional activities both locally and internationally within the established legal framework.

Section 25. Coffee warehousing in designated warehouses Section 25(1) All coffee shall be stored in warehouses duly licensed by the Authority in consultation with the county governments. Section 25(2) No premises shall be designated as a coffee warehouse by the Authority unless the premises are inspected, approved, and registered as such. Section 25(3) A licensed warehouse shall conform to the standards issued by the Kenya Bureau of Standards and shall be duly certified by a public health officer. Section 25(4) The Authority shall cause warehouses and warehousing activities to be inspected on a regular basis. Section 25(5) No warehouseman shall have a lien of any nature over coffee whether in his possession or not. Section 25(6) Every warehouseman shall insure all coffee in his warehouse or under his custody against fire, theft and other insurable risk. Section 25(7) No coffee shall be removed from a warehouse without a coffee warrant issued by the Exchange and registered with the warehouseman. Section 25(8) A person who operates a warehouse in contravention of this Regulation commits an offence.

Section 26. Export and import of coffee Section 26(1) No person shall export coffee or cause any coffee to be exported unless a phytosanitary certificate of inspection is presented to the Commissioner of Customs and Excise along with a certificate of origin or a certificate of re-export, as the case may be, relating to such coffee. Section 26(2) No coffee grown outside Kenya shall be entered into Kenya in transit for export unless accompanied by a certificate of origin. Section 26(3) No coffee imported into Kenya shall be re-exported in any condition or quantity other than that in which it was imported into Kenya except with a certificate of re-export. Section 26(4) A certificate of origin for coffee produced outside Kenya shall be valid only if issued by the certifying agency of the relevant country and endorsed and completed by the relevant government agency of that country. Section 26(5) A certificate of origin for coffee grown in Kenya, and any certificate of re-export for coffee grown outside Kenya but re-exported from Kenya, shall be issued only by the Authority. Section 26(6) The Authority shall authorize and monitor the importation of coffee into Kenya.

Section 27. Prohibition against misrepresentation of blended coffee Section 27(1) A person who blends any or various grades of coffee produced in Kenya with any other coffees produced outside Kenya shall not represent such coffee as coffee having its origin in Kenya. Section 27(2) Any person who contravenes the provisions of this regulation commits an offence.

Section 28. Coffee Warrant Section 28(1) A warehouseman shall, after every sale of coffee and upon confirmation of payment, issue to the purchaser a coffee warrant in such form, and containing such details of the coffee purchased, as the Authority may prescribe. Section 28(2) No person shall alter any certificate of origin, certificate of inspection or certificate of re-export, coffee warrant, warehouse receipt or other document prepared for purposes of these regulations.

Section 29. Exemption Section consists only of a sample or a parcel not exceeding twenty kilogrammes in weight; or

Section 30. Activities of the Authority Section advertising the merits of Kenyan coffee and increasing its sale to expand existing markets and entering new markets and matters incidental thereto;

Section 31. Quality Assurance for Coffee Industry Section 31(1) The Authority shall establish and enforce standards in grading, sampling and inspections, tests and analysis, specifications, units of measurement, code of practice and packaging, preservation, conservation and environmental sustainability and transportation of coffee. Section 31(2) The Authority shall develop a training curriculum and conduct examinations for coffee liquorers in consultation with industry stakeholders. Section 31(3) Liquoring certificates shall be issued by the Authority to persons who pass the liquoring examinations in accordance with these regulations. Section 31(4) Any qualified person intending to offer liquoring services shall apply to the Authority for certification. Section 31(5) The Authority shall develop guidelines for the establishment of independent cupping centers at the counties for the purpose of coffee quality analysis and maintenance. Section 31(6) Coffee quality analysis at the cupping centers shall be carried out only by certified liquorers. Section 31(7) Quality Assurance officers from the Authority may whenever the need arises, carry out assessments on coffee quality maintenance a...

Section 32. Appointment of inspectors Section 32(1) The Authority may appoint inspectors to conduct independent inspection of a grower's farm, a mill warehouse or the premises of a coffee trader to ascertain whether the requirements of the Act and these regulations are being complied with. Section 32(2)(a) monitor activities along the value chain of coffee to ensure compliance with set regulations and standards; Section 32(2)(b) undertake inspections to ensure compliance with these regulations; Section 32(2)(c) ensure that all people dealing with coffee adhere to the conditions of registration and licensing set out in the Second Schedule. Section 32(3) An inspector shall work in collaboration with the County executive committee member for agriculture of the respective county in the discharge of functions under this regulation. Section 32(4) A grower, miller, warehouseman or trader shall afford the inspector full and free access and all necessary assistance to any such inspector during the inspection. Section 32(5) No coffee grower, miller, agent, trader, or warehouseman or their agents shall deny entry to an inspector acting in the course of that inspector's duty or obstruct an ins...

Section 33. Prohibition against removal of labels, seals, etc. Section No agent or person employed by an agent shall, otherwise than with express written authority of a grower, remove labels or seals or open technically sewn or closed packets of coffee unless for the purpose of inspection to determine their validity and genuineness or with other reasonable cause.

Section 34. Surveillance Section The Authority shall conduct periodic surveillance within coffee-growing counties and among millers, processing plants, warehousing facilities, retail outlets, export points, and exporters' premises to assess the degree of compliance with the coffee industry policy, standards, code of practice and the general well being of the coffee industry.

Section 35. Arbitration Section Where any dispute arises between any two or more persons licensed or registered under these Regulations, the dispute may be resolved through arbitration or relevant rules made by the Cabinet Secretary.

Section 36. General penalty Section 36(1) A person who contravenes any provisions of these Regulations commits an offence. Section 36(2) A person who commits an offence under these Rules for which no other penalty is provided shall be liable to a fine not exceeding five hundred thousand shillings or to a term of imprisonment not exceeding one year or both.

Section 37. Revocation Section The Coffee (General) Rules 2002 are revoked.

Section 38. Transitional Section 38(1)(a) all licenses for coffee business existing before the coming into operation of these regulations shall remain valid until their expiry, and shall thereafter be renewed under these Regulations; Section 38(1)(b) all marketing agent and dealers' licences in force immediately before the operationalization of these Regulations shall remain valid until the 30th September, 2016. Section 38(1)(c) any person who immediately before the coming into operation of these regulations was an agent for a grower may upon such operationalization apply to the Authority for licensing under these Regulations ; Section 38(2) The Authority shall within a period of ninety days after the operationalization of these Regulations put in place a mechanism for the discharge of all liabilities attaching to or in respect of any of the institutions concerned with the growing, milling or marketing of coffee immediately before the operationalization.