The Crops (Coffee) (General) Regulations

Section 1. Citation Section These Regulations may be cited as the Crops (Coffee) (General) Regulations.

Section 2. Interpretation Section In these, Regulations, unless the context otherwise requires— "Act" means the Crops Act (Cap. 318); "agent" deleted by L.N. 102/2022, r. 2. ; "association" means a registered group comprised of smallholder growers, co-operative societies, societies, estates, unions, millers, traders or roasters, which has been licensed by a licensing authority; "auction" means a physical place or electronic system where potential buyers competitively bid for coffee; “auction organizer” means a person, company or firm established for the purpose of organizing coffee auctions in Kenya and is licensed by the Authority; "Authority" means the Agriculture and Food Authority established under section 3 of the Agriculture and Food Authority Act (Cap. 317); "broker" deleted by L.N. 102/2022, r. 2 ; “buni” means dried coffee in the fruit but does not include hulled dried fruit; "buyer" means an incorporated company licensed by the Authority to buy clean coffee at the auction for export, local sale or value addition or to import clean coffee for secondary processing in Kenya; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters related to...

Section 3. Object and purpose Section to give effect to section 40 of the Crops Act (Cap. 318);

Section 4. Functions of the Authority Section 4(1) The Authority shall, in the performance of its functions, act through the directorate responsible for coffee, to carry out such activities as are necessary to promote, develop and regulate the coffee industry as specified under the Crops Act. Section 4(2)(a) issue certificates or licences for independent coffee cupping laboratories, liquoreurs, auction organiser and miller marketer and buyers, movement permits for purchased clean coffee, and regulate imports and exports of coffee; Section 4(2)(b) register coffee dealers; Section 4(2)(c) co-ordinate capacity building activities for players in the coffee value chain; Section 4(2)(d) develop, oversee and enforce as the case may be, the national regulations, coffee industry standards, industry code of practice and other quality standards in the coffee industry in collaboration with the national body for the time being responsible for standards; Section 4(2)(e) collect, collate and maintain a data base and disseminate information on the coffee industry; Section 4(2)(f) conduct local and international coffee market intelligence and promotional activities including the application of the...

Section 5. County Governments functions Section 5(1) The county governments functions shall be as specified under the Crops Act (Cap. 318). Section 5(2)(a) registration of nursery operators, coffee growers and pulping station licence holders; Section 5(2)(b) issuance of coffee nursery certificates and permits for movement of coffee; Section 5(2)(c) issuance of pulping station, grower miller, warehousing and coffee roasting licences; Section 5(2)(d) offering and coordination of extension services on coffee production and primary processing; Section 5(2)(e) inspection of nurseries, pulping stations, millers roasters and warehouses located within their respective counties; Section 5(2)(f) enforcement of county and national legislation on coffee, industry code of practice and other industry standards; Section 5(2)(g) in collaboration with law enforcement agencies, enforcement of regulations and enhancement of security of coffee in the county; Section 5(2)(h) enforcement of policies and guidelines on corporate governance in coffee growers' institutions; and Section 5(2)(i) monitoring and report of incidences of pests and disease outbreaks and taking appropriate action in collaboration w...

Section 6. Collaboration between County Government and the Authority Section In accordance with Article 6(2) of the Constitution, the county governments and the Authority shall consult and cooperate in the development, promotion and regulation of the coffee industry.

Section 7. Registration Section 7(1) Every grower shall be registered by the county government where his coffee is grown. Section 7(2) Every coffee nursery operator, co-operative society, coffee association and coffee estate shall register with the county government where they operate. Section 7(3) A small holder may register with a co-operative society or any other legal entity of which he is a member. Section 7(4) The county governments shall maintain up-to-date registers of all nursery operators, coffee co-operative societies, coffee associations, coffee estates and share the information with the Authority. Section 7(5) The Authority shall register all coffee warehousemen, warehouses, coffee miller-marketer, grower marketer, grower miller, auction organizer, coffee buyers, coffee bags suppliers, roasters, importers, and certification companies, maintain an up-to-date register and share the register with respective county governments. Section 7(6) Neither the Authority nor the county governments shall charge any registration fee. Section 7(7) Registration shall take the format prescribed by Form H for growers and Form H1 for dealers in the First Schedule in these Regulations. Sec...

Section 8. Application for a licence, certificate or permit Section 8(1) A person who intends to engage in coffee business shall apply to the Authority or the county government, as the case may be, using the respective application forms and execute a self-declaration form as set out in the First Schedule, and shall be issued with a licence, certificate or permit in the corresponding form set out in the same Schedule, upon fulfillment of all requirements and payment of the prescribed fee set out in the Second Schedule. Section 8(2) The provisions of subregulation (1) shall not apply to a person engaged in coffee farming. Section 8(3) A person who deals in coffee shall produce the certificate, permit or license respectively issued under subregulation (1) upon request by an inspector or such other authorized persons at all times. Section 8(4) A person who deals in coffee shall submit returns to the licensing authority in the format set out in the First Schedule. Section 8(5) A person who contravenes this regulation commits an offence.

Section 9. Prohibition against operating without a certificate, permit or licence Section 9(1) A person shall not pulp, mill, warehouse, export, import, trade, transport, possess or otherwise deal in or transact any business in coffee unless the person holds a valid certificate, permit or licence issued by the Authority or the county government for that purpose. Section 9(2) A person who contravenes this regulation commits an offence.

Section 10. Licensing Section 10(1)(a) a coffee nursery certificate in Form A2 set out in the First Schedule authorizing the holder to operate a coffee nursery; Section 10(1)(b) pulping station licence in Form B2 set out in the First Schedule authorizing the holder to operate a pulping station and may undertake hulling; Section 10(1)(c) a coffee grower's milling licence in Form C3 set out in the First Schedule authorizing the holder to pulp, mill, market or roast own coffee; and Section 10(1)(d) deleted L.N. 102/2022, r. 6; Section 10(1)(e) a coffee roaster licence in Form F2 set out in the First Schedule authorizing the holder to buy, roast or grind and package clean coffee for local sale; Section 10(1)(f) a warehouse licence in Form G2 set out in the First Schedule authorizing the holder to warehouse coffee. Section 10(2)(a) deleted L.N. 102/2022, r. 6; Section 10(2)(b) an independent cupping laboratory licence authorizing the holder to offer coffee liquoring services and training on coffee quality at a fee; Section 10(2)(c) a coffee buyer's licence in Form D2 set out in the First Schedule authorizing the holder to buy clean coffee from the auction for export, local sale or value...

Section 11. Limitation of a coffee licence Section 11(1) A holder of a coffee buyer's licence or any other entity associated with such holder shall not be licensed as a commercial miller, broker, roaster, agent or warehouseman. Section 11(2) A buyer's licence shall not authorize the buyer to engage in direct sales. Section 11(3) The respective licensing authority may revoke any licence, which is found to be held in contravention of subregulations (1) and (2). Section 11(4) Licences issued by the licensing authority shall run from 1st October to 30th September of every year and application for renewal of a licence shall be made to the Authority not late than the 1st day of the month of September in which the current licence is to expire. [L.N. 102/2022, r. 7.]

Section 12. Conditions of licence Section 12(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 12(2) A licence holder shall specify the premises upon which the business specified in the license shall be conducted. Section 12(3) Every licensed person shall comply with the Kenya Coffee Industry Standards, Industry Code of Practice and the Industry regulatory framework. Section 12(4) Every licence holder shall submit monthly returns as required, to the licensing authority.

Section 13. Licensing procedure Section 13(1) A licensing authority may, after inspection and evaluation of an application received under these Regulations, grant the licence applied for or reject the application. Section 13(2) Where a licensing authority rejects an application, the licensing authority shall notify the applicant accordingly, giving reasons for the rejection within fourteen days from the date of the decision of the licensing authority. Section 13(3) The applicant may resubmit an application following such rejection after addressing the issues raised in the notification from the licensing authority. Section 13(4) Where the licensing authority rejects an application after resubmission under subregulation (3), the applicant may appeal to the Cabinet Secretary or in the case of a county government, appeal to the County Executive Committee through the County Secretary within thirty days of notification of the rejection by the licensing authority. Section 13(5) Where an applicant is dissatisfied with the decision of the Cabinet Secretary or the County Executive Committee in sub regulation (4), the applicant may seek judicial recourse within thirty days of the decision. Se...

Section 14. Duration of licences Section 14(1) Licences issued by the licensing authority shall expire on the 30th June of every year and license holders wishing to renew the licences may apply by 1st June preceding the expiry of the licence. Section 14(2) Notwithstanding the provisions of subregulation (1), a late application may be made upon payment of a late application fee as set out in the Second Schedule.

Section 15. Movement permits Section 15(1) The movement of coffee shall be managed through the issuance of movement permits by the licensing authority provided that no movement permit shall be issued under these Regulations to any person other than a licence holder, and the licence holder shall not alter the particulars entered therein. Section 15(2) A person shall not move coffee or cause any coffee to be moved without an original movement permit issued by the licensing authority in accordance with sub regulation (1). Section 15(3) Duplicate copies or photocopies of the original movement permit shall not be used for coffee movement. Section 15(4) Any vessel used for coffee transportation shall conform to the Kenya Coffee Standards. Section 15(5) The respective county governments 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 illegal coffee dealings. Section 15(6)(a) in the case of buni and parchment, by the respective county of origin; or Section 15(6)(b) in the case of clean coffee from the coffee mills to the warehouses, by the respective coun...

Section 16. Obligations of licence holders Section 16(1) Licence holders and other service providers under these Regulations shall observe the obligations set out in the Third Schedule. Section 16(2) The obligations set out in the Third Schedule shall form part of every contract between a grower and a grower's respective service provider or agent whether expressly provided for in the contract or not. Section 16(3) All service agreements entered under these Regulations shall be registered with the Authority and the respective county governments.

Section 17. Notification after planting, uprooting coffee exchange of details of farm or estate Section 17(1) Data on area of coffee planted or uprooted within a county shall be maintained by the respective county government. Section 17(2) A co-operative society or other legal entity shall maintain growers' records of number of trees planted or uprooted. Section 17(3) The co-operative society or other legal entity shall notify the county government of the details maintained under subregulation (2) and as specified in Form H set out in the First Schedule. Section 17(4) The county government shall file the growers' registers with the Authority annually.

Section 18. Coffee Industry Standards and Code of Practice Section The Authority and the county governments shall enforce the coffee industry code of practice and standards on the coffee production, processing, marketing and quality control.

Section 19. Certification of Kenya Coffee Section 19(1) The Authority shall promote coffee certification schemes for Kenyan coffee and geographical indications. Section 19(2) The certification schemes operating within the coffee industry shall register with the Authority prior to the commencement of their operations in Form I set out in the First Schedule. Section 19(3) Certified coffee shall be identified and labelled according to the respective certification schemes for traceability and marketing. Section 19(4) A coffee grower miller or any other player in the coffee value chain may seek certification to ensure the quality of coffee, the quality of service and secure market confidence. Section 19(5) A miller shall declare certified coffees in the sales catalogue. Section 19(6) Certified coffee shall be traded in accordance with these Regulations and any other laws that may govern the auction. Section 19(7) A coffee miller shall provide documentary proof of certification to the auction before such coffees are offered for sale. [L.N. 102/2022, r. 8.]

Section 20. Research and Prohibition of issuance of coffee seeds or seedlings Section 20(1) The Kenya Agricultural and Livestock Organization may validate coffee research findings from other accredited research institutions. Section 20(2) The Kenya Agricultural and Livestock Research Organization or its authorized agents operating coffee seed production 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 20(3) Notwithstanding the provisions of subregulation (2) any person who issues coffee planting materials for multiplication or distribution other than the Kenya Agricultural and Livestock Research Organization shall obtain certification from institutions legally mandated by statute to issue certification. Section 20(4) A person shall not establish or operate a coffee nursery unless the person is licensed by the respective county government. Section 20(5) The Authority may upon application, licence a person to import coffee planting material for nursery establishment subject to conditions set out under the Second Schedule. Section 20(6)(a) visits and inspe...

Section 21. Requirements relating to coffee pulping Section 21(1) The primary processing of coffee shall be carried out by an estate or a grower's co-operative society or other association comprising growers under a pulping station licence. Section 21(2) The pulping station licence shall include authority to undertake hulling of own parchment or buni , provided the hulling activity is registered with the County Government and shared with the Authority. Section 21(3)(a) appropriately weigh each grower's cherry using digitalized coffee weighing scales and post the information on quantity and quality to the grower and to a central database made accessible to the grower, for traceability: Provided that the cooperative society or such other association which does not have digitized weighing and information systems shall put the same in place within a period not exceeding twelve months upon the commencement of these Regulations; Section 21(3)(b) coffee weighing scales shall be annually calibrated by the government agency responsible for weights and measures and such calibration evidence shall be appended to the weighing scales in form of seals; Section 21(3)(c) in handling parchment, do...

Section 22. Requirements relating to coffee milling Section 22(1) Every coffee society shall, by resolution of its management meeting, competitively procure services of a licensed miller-marketer for the milling parchment and buni coffee and the marketing of clean coffee, or as the case may be. Section 22(1A) The management of every society shall, within two months of the end of the crop year, convene a meeting of its members to ratify the miller-marketer procured under subregulation (1). Section 22(1B) The County Executive Committee Member responsible for cooperatives shall attend or designate a representative to attend the meeting referred to in subregulation (1A). Section 22(1C) Every registered miller participating in the meeting under subregulation (1A) shall disclose all charges and fees that may be incurred in the milling process to enable growers make an informed decision. Section 22(1D) Every resolution made under this regulation with regards to the procurement of a miller-marketer, shall within fourteen days of the meeting, be filed with the Authority and copied to the respective County Government. Section 22(2) A miller-marketers licensed under these Regulations shall ch...

Section 23. Coffee trading Section 23(1)(a) the auction; and Section 23(1)(b) direct sales. Section 23(1A) A coffee miller-marketer shall be prohibited from offering a grower financial support. Section 23(1B) The Coffee Auction shall be managed by an auction organiser who shall be licensed by the Authority. Section 23(2) The prices offered at the direct sales shall be competitive and bear a favorable comparison to those discovered at the auction. Section 23(3) A buyer, roaster, a miller-marketer, grower marketer licensed by the relevant licensing authority, may trade at the auction in accordance with these Regulations and any other laws that may govern the auction. Section 23(4) A buyer shall remit to the Authority a sample of 200 grams of clean coffee representing the consignment destined for shipment to the overseas buyer for purposes of arbitration in case of disputes and for quality control. Section 23(5) It shall be an offence for a holder of a miller-marketing licence to participate by himself or by his agent in the buying of coffee. Section 23(6) Parallel directorships and cross ownership of shares in miller-marketers and coffee buying companies is prohibited. Section 23(7)...

Section 24. Direct sales Section 24(1) A licensed grower, other legal entity representing growers may undertake direct sales. Section 24(2) A licensed grower or other legal entity representing growers may sell own clean coffee to licensed roasters for local value addition and sale, provided that the roasters shall comply with requirements set by the licensing authority and meet the obligations under the Third Schedule. Section 24(2A) Direct coffee sales shall be subject to price competition at an auction whereby the Direct sales price shall serve as a reserve price. Section 24(2B) Where the coffee referred to in subsection (2) fetches a higher price at the Coffee auction than the direct sale price offered, the prospective direct sale buyer shall have the right of first refusal to buy the coffee at the auction price. Provided that if the prospective direct sales buyer refuses to buy the coffee at the Coffee auction price, the coffee shall be sold to highest bidder above the reserve price at the auction. Section 24(3)(a) a copy of the contract; Section 24(3)(b) the coffee grade; Section 24(3)(c) the coffee quantity; Section 24(3)(d) the coffee price; Section 24(3)(e) details of a cer...

Section 25. Management of the auction Section 25(1) The auction organizer shall manage the auction floor, central sample room, information registry and the direct settlement system, maintain records relating to coffee sales, coffee samples and sweepings, and avail sales catalogues to interested parties. Section 25(2) The proceeds of the sale of coffee by the auction shall, be deposited in a direct settlement system established in accordance with the laws that govern the auction. Section 25(3) The grower or the grower’s authorized representatives, shall after the commencement of these Regulations, supply through the auction all the necessary particulars of the grower to the commercial banks providing the direct settlement system to the grower, for purposes of initiating the settlement system Section 25(4) The grower or the grower’s authorized representatives shall through the auction organiser, lodge with the commercial banks providing the direct settlement system, any relevant contracts of service for which payment will be due from the grower, and any other document showing outstanding liabilities payable by the grower, for purposes of settlement through the system. Section 25(5) T...

Section 26. Sales catalogue Section 26(1) A grower marketer or a miller-marketer in consultation with the auction organizer shall prepare a sales catalogue for all the coffee in a licensed warehouse in accordance to the coffee trading rules and these Regulations. Section 26(2) A sales catalogue shall contain the particulars set out in the Seventh Schedule. [L.N. 102/2022, r. 14.]

Section 27. Coffee promotions Section The Authority may co-ordinate coffee stakeholders, including County Governments, growers and buyers at national and international events for the purpose of promoting Kenya coffee.

Section 28. Coffee warehousing in designated warehouses Section 28(1) All coffee shall be stored in warehouses duly licensed by the respective county governments. Section 28(2) Premises shall not be designated as a coffee warehouse by the county government unless the premises are inspected, approved, and licensed by the county government. Section 28(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 28(4) The Authority and county governments shall inspect warehouses and warehousing activities on a regular basis. Section 28(5) A warehouseman shall not have a lien of any nature over coffee whether the coffee is in his possession or not. Section 28(6) A warehouseman shall insure all coffee in his warehouse or under his custody against fire, theft and other insurable risk. Section 28(7) Coffee shall not be removed from a warehouse without an endorsed coffee warrant or warehouse receipt as the case may be. Section 28(8) A warehouseman shall account for any weight or quality loss to the growers, agents, buyers or roasters. Section 28(9) A person who operates a warehouse contrary to...

Section 29. Export and import of coffee Section 29(1) A person shall not export coffee or cause any coffee to be exported unless a phytosanitary certificate issued by the competent authorities is presented to the Commissioner of Customs and Excise. Section 29(2) The Authority shall authorize all coffee exports through issuance of the coffee buyer's licence, notification and registration of direct sales contracts, Certificate of Origin, certificate of quality and movement permits. Section 29(3) The Authority shall authorize coffee imports through issuance of import permits or a buyer's licence: Provided clean coffee imports shall be accompanied by the Certificate of origin and a Phytosanitary certificate issued by country of origin.

Section 30. Prohibition against blending Section 30(1) A person who blends any or various grades of coffee produced in Kenya with any other coffees produced outside Kenya shall declare the percentage of Kenyan coffee in the blend. Section 30(2) A person who contravenes this regulation commits an offence.

Section 31. Exemption Section Clean coffee which consists only of a sample or a parcel not exceeding twenty kilograms in weight shall not require a buyer's license from the Authority provided that it fulfils other relevant licensing and certification requirements.

Section 32. Quality Assurance for Coffee Industry Section 32(1) The Authority and county governments shall collaborate in the enforcement of coffee industry standards along the value chain, for purposes of quality assurance. Section 32(2) The Authority, in consultation with an accredited university of higher learning, and industry stakeholders, shall develop a training curriculum, conduct examinations and jointly issue certificates for coffee liquorers. Section 32(3) The Authority may enter into a memorandum of understanding with an accredited university in the training and administration of liquorers' examinations. Section 32(4) A person certified as a liquorer shall apply for a practicing licence to the Authority to offer independent liquoring services. Section 32(5) The Authority shall, in collaboration with county governments, establish cupping centers in the counties for the purpose of coffee quality analysis and capacity building. Section 32(6) Coffee quality analysis at the cupping centers shall be carried out by certified liquorers. Section 32(7) Quality Assurance officers from the Authority shall carry out assessments on coffee quality maintenance at any premises that hand...

Section 33. Inspection Section 33(1) The Authority and the county governments, shall separately or jointly conduct inspection of miller-marketer, grower-miller and grower-marketer, coffee farms, coffee nurseries, pulping stations, coffee mills, warehouses, cupping centres, roasters or coffee buyers' vessels transporting coffee to ascertain compliance with the requirements of the Act and these Regulations. Section 33(2) A smallholder, a grower, a pulping station operator, a transporter, a miller, a warehouseman or a buyer shall accord an inspector full and free access and all necessary assistance during the inspection. Section 33(3)(a) a degree from an accredited university in agriculture, agricultural engineering, food science and technology, or a related course; Section 33(3)(b) three years' minimum experience in agriculture or related field; Section 33(3)(c) satisfies chapter six of the Constitution; Section 33(3)(d) has English and Kiswahili languages proficiency; Section 33(3)(e) computer literacy; and Section 33(3)(f) any other additional requirement by the licensing authority. Section 33(4) The Authority shall gazette inspectors upon their appointment. [L.N. 102/2022, r. 16.]

Section 34. Conformity certificates and compliance reports Section 34(1) The Authority shall issue annual standards conformity certificates to coffee miller-marketer, grower-miller and grower-marketer, warehousemen, buyers and roasters in a format prescribed by the Authority and such certificates may inform county governments in the renewal of licences. Section 34(2) The Authority shall issue to county governments reports on the compliance with standards and the regulatory framework by nursery operators and pulping station licence holders and such reports may inform renewal of licences. [L.N. 102/2022, r. 17.]

Section 35. Prohibition against removal of labels, seals, etc. Section A person shall not, except 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 for other lawful cause.

Section 36. Coffee Imports to conform to standards Section 36(1) All coffee imported to Kenya shall conform to the Kenya coffee standards. Section 36(2) Clean coffee imported shall be accompanied by a certificate of origin from the country of origin. Section 36(3) Coffee, which does not conform to the Kenya coffee standards shall be destroyed upon an order of a court of competent jurisdiction obtained in proceedings instituted by the Authority with due notice to the importer, and the import and permit of the owner may be suspended and subsequently cancelled.

Section 37. Survelliance Section 37(1) The Authority and county governments shall jointly or separately conduct periodic surveillance among growers, pulping stations, miller-marketer, grower-miller, grower marketer, roasters, processing plants, warehousing facilities, transporters, retail outlets, border points, and buyers' premises to assess the degree of compliance with the coffee industry policy, standards, code of practice, laws and the general well-being of the coffee industry. Section 37(2) Surveillance reports will be shared with county governments for purposes of standards and the regulatory framework enforcement. [L.N. 102/2022, r. 18.]

Section 38. Digitization Section 38(1) The Authority, county governments, every licence holder, certificate holder and service provider shall digitize and automate their operations for efficient service delivery and information dissemination. Section 38(2)(a) multiple parties can access a common system; Section 38(2)(b) flow of data takes place seamlessly across the value-chain without corruption; Section 38(2)(c) the system is safe and secured and protected against unauthorized entry or access; Section 38(2)(d) access to the system is properly regulated and monitored with adequate mechanisms for continued integrity; and Section 38(2)(e) the records are not lost, destroyed or tampered with, and in the event of any loss or destruction, sufficient back-up is available in a secure place. Section 38(3) The digitization referred to in subregulation (1) shall require the conversion of the entire value chain into a digital platform based on automation, computerization, integration across the value-chain and digital instrument usage including weigh scales, digital scanners, storage and inventory management. Section 38(4) The digitization and automation referred to in this regulation shall...

Section 39. Sharing of information Section 39(1) The county governments shall share the information on registered and licensed growers and dealers with the Authority on a monthly basis or other agreed timelines. Section 39(2) The Authority shall share the information with the respective count governments on registered and licensed dealers and other service providers within their county on a monthly basis or other agreed timelines.

Section 40. Dispute Resolution Section Where any dispute arises between any two or more persons contracted, licensed or registered under these Regulations, the dispute may be resolved through alternative dispute resolution mechanism in the first instance with judicial proceedings as the last resort.

Section 41. Alteration of documents Section 41(1) A person shall not alter any document issued by a licensing authority or any other competent authority. Section 41(2) A person who contravenes this provision commits an offence.

Section 42. Inspections for specialty coffee Section Any person contracted to produce and market specialty coffee shall give access to persons authorized by the Authority to inspect the farms, processing facilities, warehouses and vessels transporting coffee and shall, when required to do so, produce for the purpose of inspection, any document or information related to production, processing and export of the coffee.

Section 43. Inaccurate, misleading or false information Section A person who fails to give information or gives inaccurate or misleading information or falsifies information or misrepresents information required under these Regulations commits an offence.

Section 44. General penalty Section 44(1) A person who commits an offence under these Regulations, for where no penalty is provided, 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. Section 44(2) Notwithstanding the provision of sub regulation (1), the licensing authority may suspend or revoke a license issued under these Regulations.

Section 45. Revocation L.N. No. 123 of 2002 Section The Coffee (General) Rules 2002 are revoked.

Section 46. Transitional provision Section all licenses existing before the coming into operation of these Regulations shall remain valid until their expiry, and subsequent licenses shall be issued under these Regulations;

Section 38A. Society Loans Section The interest rate on borrowing against growers’ assets held in trust by the growers’ coffee co-operative societies such as assets, land, machinery, equipment, shall be capped at five per cent per annum. No society shall contract any loans or advances under subsection (a) except with the support of a resolution passed by a majority of the members to that effect. Any society that violates the provisions subsection (a) commits an offence and any loans borrowed in breach of this provision shall be statutorily converted. Nothing in this section shall be interpreted as prohibiting coffee farmers from directly borrowing money from regulated financial institutions or any government established funds against their deliveries of cherry, parchment and clean coffee. The trusteeship responsibility by the management committee of a coffee cooperative society is a Fiduciary duty of position of trust and directors shall have held liable for any directors. Waste and loss arising from negligence and breach of trust. [L.N. 102/2022, r. 19.]

Section 38B. Coffee buyers Performance bond Section The Authority shall demand a performance bond from a coffee buyer who demonstrates a level of risk in buyer’s operations including; sample purchases, payments against coffee purchases and settlement of trade obligations. Provided the value of such performance bond shall be commensurate to the level of risk demonstrated by a coffee buyer. [L.N. 102/2022, r. 19.]