The Crops (Fibre Crops) Regulations

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

Section 2. Interpretation Section a grower who cultivates; or

Section 3. Purpose of these Regulations Section The purpose of these Regulations is to provide for the regulation, promotion and development of the fibre crops and fibre crop products.

Section 4. Scope of application of these Regulations Section the procedures and conditions for registering and licensing of dealers;

Section 5. Registration of smallholder fibre crop growers Section 5(1) A smallholder fibre crop grower may register with the growers’ entity the grower so desires. Section 5(2) A smallholder fibre crop grower who opts to register in accordance with subregulation (1) may apply for registration in Form AFA/FCD/A1 set out in the First Schedule. Section 5(3)(a) within fourteen days of receiving the application, issue to a successful applicant a certificate of registration; or Section 5(3)(b) within seven days of receiving the application, reject the application and indicate the reasons thereof. Section 5(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 5(4)(b) engage in the dispute resolution mechanisms specified in the constitution, by-laws or memorandum or articles, of the growers’ entity. Section 5(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the growers’ entity shall issue the applicant a certificate of registration, within fourteen days. Section 5(6) A growers’ entity shall issue a certificate of registration under this regulation in Form AFA/FCD/B1 set out in the...

Section 6. Registration of fibre crops plantation growers Section 6(1) A fibre crop plantation grower shall apply for registration in Form AFA/FCD/A2 set out in the First Schedule. Section 6(2)(a) within fourteen days of receiving the application, issue to a successful applicant a certificate of registration; or Section 6(2)(b) within seven days of receiving the application, reject the application and indicate the reasons thereof. Section 6(3)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 6(3)(b) appeal to Court. Section 6(4) Upon resubmission of a satisfactory application under subregulation (3)(a), the Authority shall issue the applicant a certificate of registration, within fourteen days. Section 6(5) The Authority shall issue a certificate of registration under this regulation in Form AFA/FCD/B2 set out in the Second Schedule, subject to such conditions it deems necessary. Section 6(6) The Authority shall maintain a register of all fibre crops plantation growers registered with it in Form AFA/FCD/C1 set out in the Third Schedule. Section 6(7) The register referred to in subregulation (6) shall...

Section 7. Registration of commercial nurseries Section 7(1) An operator of a commercial nursery shall register with the County Government where the nursery is located. Section 7(2) An operator of a commercial nursery shall apply for registration in Form AFA/COUNTY/A1 set out in the First Schedule. Section 7(3)(a) within fourteen days of receiving the application, issue to a successful applicant a certificate of registration; or Section 7(3)(b) within seven days of receiving the application, reject the application and indicate the reasons thereof. Section 7(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 7(4)(b) appeal to Court. Section 7(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the respective County Government shall issue the applicant a certificate of registration, within fourteen days. Section 7(6) The respective County Government shall issue a certificate of registration under this regulation in Form AFA/COUNTY/B1 set out in the Second Schedule, subject to such conditions it deems necessary.

Section 8. Licensing of commercial nurseries Section 8(1) A person shall not operate a commercial nursery without a licence from the respective County government. Section 8(2) An operator of a commercial nursery shall apply to the County Government where the nursery is located, for a licence in Form AFA/COUNTY/A2 set out in the First Schedule. Section 8(3)(a) within sixty days of receiving the application, issue to a successful applicant a licence; or Section 8(3)(b) within thirty days of receiving the application, reject the application and indicate the reasons thereof. Section 8(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 8(4)(b) appeal to Cabinet Secretary. Section 8(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the respective County Government shall issue the applicant a licence, within thirty days. Section 8(6) The respective County Government shall issue a licence under this regulation in Form AFA/COUNTY/B2 set out in the Second Schedule, subject to such conditions it deems necessary. Section 8(7) A licenced operator of a commercial nursery shall submit r...

Section 9. Registration of retailers Section 9(1) A person who intends to trade in fibre crops or fibre crop products, shall register with the Authority as a retailer. Section 9(2) A retailer shall apply for registration in Form AFA/FCD/A3 set out in the First Schedule. Section 9(3)(a) within fourteen days of receiving the application, issue to an applicant who has complied with the conditions set out in the Sixth Schedule, a certificate of registration; or Section 9(3)(b) within seven days of receiving the application, reject the application and indicate the reasons thereof. Section 9(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 9(4)(b) appeal to Court. Section 9(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the Authority shall issue the applicant a certificate of registration, within fourteen days. Section 9(6) The Authority shall issue a certificate of registration under this regulation in Form AFA/FCD/B3 set out in the Second Schedule, subject to such conditions it deems necessary. Section 9(7) The Authority shall maintain a register of all retailers in Form...

Section 10. Licensing of retailers Section 10(1) A person shall not trade in fibre crops or fibre crop products, without a licence from the Authority as a retailer. Section 10(2) A retailer shall apply for a licence in Form AFA/FCD/A4 set out in the First Schedule. Section 10(3) A retailer shall specify the collection centres the retailer acquires fibre crops from or delivers fibre crops to, in the retailer’s application for a licence. Section 10(4)(a) within sixty days of receiving the application, issue to a successful applicant a licence; or Section 10(4)(b) within thirty days of receiving the application, reject the application and indicate the reasons thereof. Section 10(5)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 10(5)(b) appeal to Cabinet Secretary. Section 10(6) Upon resubmission of a satisfactory application under subregulation (5)(a), the Authority shall issue the applicant a licence, within thirty days. Section 10(7) The Authority shall issue a licence under this regulation in Form AFA/FCD/B4 set out in the Second Schedule, subject to such conditions it deems necessary. Section 10(8...

Section 11. Designation of collection centres Section 11(1) The Authority in consultation with the relevant County Government and the stakeholders in the fibre crops industry, shall designate collection centres in each county. Section 11(2)(a) has an appropriate store or warehouse for storing fibre crops or fibre crop products; and Section 11(2)(b) complies with national, regional and international standards, codes of practice and best practices in the fibre crops industry. Section 11(3) A county government, growers’ entity, dealer or manufacturer may own or manage a collection centre designated as such in accordance with subregulation (1).

Section 12. Setting up a new fibre crop products manufacturing factory Section 12(1) A person shall not set up a new fibre crop products manufacturing factory without a certificate of compliance issued by the Authority. Section 12(2) A person who intends to set up a fibre crop products manufacturing factory shall make an application for a preliminary approval in Form AFA/FCD/A5 set out in the First Schedule. Section 12(3)(a) within sixty days of receiving the application, issue to a successful applicant a preliminary approval; or Section 12(3)(b) within thirty days of receiving the application, reject the application and indicate the reasons thereof. Section 12(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 12(4)(b) appeal to Court. Section 12(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the Authority shall issue the applicant a preliminary approval, within thirty days. Section 12(6) The Authority shall issue a preliminary approval under this regulation in Form AFA/FCD/B5 set out in the Second Schedule, subject to such conditions it deems necessary. Section 12(7)...

Section 13. Registration of fibre crop products manufacturers Section 13(1) A person shall not manufacture fibre crop products unless that person is registered with the Authority. Section 13(2) A fibre crop products manufacturer shall apply for registration in Form AFA/FCD/A3 set out in the First Schedule. Section 13(3)(a) within fourteen days of receiving the application, issue to an applicant who has complied with the conditions set out in the Sixth Schedule, a certificate of registration; or Section 13(3)(b) within seven days of receiving the application, reject the application and indicate the reasons thereof. Section 13(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 13(4)(b) appeal to Court. Section 13(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the Authority shall issue the applicant a certificate of registration, within fourteen days. Section 13(6) The Authority shall issue a certificate of registration under this regulation in Form AFA/FCD/B3 set out in the Second Schedule, subject to such conditions it deems necessary. Section 13(7) The Authority shall...

Section 14. Licensing of fibre crop products manufacturers Section 14(1) A person shall not manufacture fibre crop products without a licence from the Authority as a fibre crops products manufacturer. Section 14(2) A manufacturer shall apply for a licence in Form AFA/FCD/A4 set out in the First Schedule. Section 14(3)(a) within sixty days of receiving the application, issue to a successful applicant a licence; or Section 14(3)(b) within thirty days of receiving the application, reject the application and indicate the reasons thereof. Section 14(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 14(4)(b) appeal to Cabinet Secretary. Section 14(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the Authority shall issue the applicant a licence, within thirty days. Section 14(6) The Authority shall issue a licence under this regulation in Form AFA/FCD/B4 set out in the Second Schedule, subject to such conditions it deems necessary. Section 14(7) A manufacturer who contravenes subregulation (1) commits an offence and shall on conviction be liable to a fine not exceeding ten mi...

Section 15. Registration of exporters and importers Section 15(1) A person shall not export or import, fibre crops or fibre crop products, unless that person is registered with the Authority. Section 15(2) An exporter or importer, shall apply for registration in Form AFA/FCD/A7 set out in the First Schedule. Section 15(3)(a) within fourteen days of receiving the application, issue to an applicant who has complied with the conditions set out in the Sixth Schedule, a certificate of registration; or Section 15(3)(b) within seven days of receiving the application, reject the application and indicate the reasons thereof. Section 15(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 15(4)(b) appeal to Court. Section 15(5) Upon resubmission of a satisfactory application under subregulation (4) (a), the Authority shall issue the applicant a certificate of registration, within fourteen days. Section 15(6) The Authority shall issue a certificate of registration under this regulation in Form AFA/FCD/B3 set out in the Second Schedule, subject to such conditions it deems necessary. Section 15(7) The Authority sha...

Section 16. Licensing of exporters and importers Section 16(1) A person shall not export or import, fibre crops or fibre crop products, without a licence from the Authority as an exporter or importer. Section 16(2) An exporter or importer shall apply for a licence in Form AFA/FCD/A8 set out in the First Schedule. Section 16(3)(a) within sixty days of receiving the application, issue to a successful applicant a licence; or Section 16(3)(b) within thirty days of receiving the application, reject the application and indicate the reasons thereof. Section 16(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 16(4)(b) appeal to Cabinet Secretary. Section 16(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the Authority shall issue the applicant a licence, within thirty days. Section 16(6) The Authority shall issue a licence under this regulation in Form AFA/FCD/B7 set out in the Second Schedule, subject to such conditions it deems necessary. Section 16(7) Every exporter and importer shall submit monthly returns by the fifteenth day of every month to the Authority in Form AFA/F...

Section 17. Export and import permits Section 17(1) A person shall not export or import, a consignment of fibre crops or fibre crop products, without a permit from the Authority for each consignment to be exported or imported. Section 17(2) An exporter or importer shall apply for a permit in Form AFA/FCD/A9 set out in the First Schedule. Section 17(3)(a) within two days of receiving the application, issue to a successful applicant a permit; or Section 17(3)(b) within a day of receiving the application, reject the application and indicate the reasons thereof. Section 17(4)(a) within seven days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 17(4)(b) appeal to Court. Section 17(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the Authority shall issue the applicant a permit, within two days. Section 17(6) The Authority shall issue a permit under this regulation in Form AFA/FCD/B8 set out in the Second Schedule, subject to such conditions it deems necessary. Section 17(7) An exporter or importer who contravenes subregulation (1) commits an offence and shall on conviction be liable to a fine not ex...

Section 18. Renewal of licences Section 18(1) All licences issued under these Regulations shall be valid until the thirtieth of June immediately following the date when it was issued. Section 18(2) An application for the renewal of a licence shall be made in the same manner as the application for a new licence. Section 18(3) An applicant for the renewal of a licence shall comply with the conditions set out in the Sixth Schedule Section 18(4) An application for the renewal of a licence shall be made at least thirty days before it expires. Section 18(5) An annual inspection by a crops inspector shall be a prerequisite for the renewal of a licence issued under these Regulations.

Section 19. Fibre crops seed requirements Section 19(1) A person shall only use planting materials from a source certified by Kenya Plant Health Inspectorate Services. Section 19(2) A person shall only trade in fibre crop seeds in accordance with the Seeds and Plant Varieties Act. Cap. 326 .

Section 20. Obligations of growers Section 20(1) Every grower shall only use planting seeds that are certified by in accordance with the Seeds and Plant Varieties Act. Cap. 326 . Section 20(2) Every grower shall adhere to the standards KS 2857, KS 2858 and the national, regional and international standards, codes of practice and other best practices in the cultivation of fibre crops. Section 20(3) Every grower shall harvest only physiologically mature fibre crops. Section 20(4) Every grower shall, before offering their fibre crops for sale, grade fibre crops in accordance with regulation 24. Section 20(5) Every grower shall package their fibre crops in accordance with these Regulations. Section 20(6) Every grower shall offer for sale their fibre crops only at designated collection centres.

Section 21. Obligations of retailers Section 21(1) Every grower shall adhere to the standards KS 2857, KS 2858 and the national, regional and international standards, codes of practice and other best practices in the handling of fibre crops and fibre crop products. Section 21(2) Every retailer shall trade in fibre crops and fibre crop products, only at designated collection centres. Section 21(3)(a) conspicuously display the prices offered per unit weight of each grade of fibre crop and fibre crop product, in the local dialect, Kiswahili and English, when the retailer’s premises are open for business; Section 21(3)(b) display sample boxes, of standard sizes, of grades of fibre crops and fibre crop products; Section 21(3)(c) display weighing scales that have been properly calibrated, serviced, Section 21(3)(d) issue original receipts to the person they sell their fibre crops or fibre crop products from and retain the duplicate receipts for the sales; and Section 21(3)(e) trade in fibre crops and fibre crop products at the price determined in accordance with pricing formula under regulation 28. Section 21(4) Every retailer shall store fibre crops and fibre crops, only at registered w...

Section 22. Obligations of fibre crop products manufacturers Section 22(1) Every fibre crop products manufacturer shall acquire fibre crops and fibre crop products only from a registered person. Section 22(2) Every fibre crop products manufacturer shall grade fibre crops and fibre crop products in accordance with regulation 24. Section 22(3) A fibre crop products manufacturer may mix fibre crops or fibre crop products only if the crops or the products are of the same grade. Section 22(4) Every fibre crop products manufacturer shall ensure that the quality of the fibre crops and fibre crop products are maintained to avoid any contamination. Section 22(5) Every fibre crop products manufacturer shall maintain and operate machinery in a manner that it will not deteriorate or damage fibre crops and fibre crop products. Section 22(6) Every fibre crop products manufacturer shall adhere to the standards KS 2857, KS 2858 and the national, regional and international standards, codes of practice and other best practices in the cultivation of fibre crops. Section 22(7) A fibre crop products manufacturer may install additional processing capacity or vary the type of manufacturing only with prio...

Section 23. Baling Section 23(1) A fibre crop products manufacturer shall label legibly and indelibly, their bales. Section 23(2)(a) the name of the fibre crop or fibre crop product; Section 23(2)(b) the grade of the fibre crops or fibre crop products; Section 23(2)(c) the country of origin of the fibre crops or fibre crop products; Section 23(2)(d) the bale number of the fibre crops or fibre crop products; Section 23(2)(e) the lot number of the fibre crops or fibre crop products; Section 23(2)(f) the year the fibre crop was harvested; and Section 23(2)(g) the net weight of the bale in kilograms. Section 23(3) The ink is used to label a bale under subregulation (1) shall not penetrate the bale to avoid contamination of the fibre crops or the fibre crop products within the bale. Section 23(4) Every fibre crop products manufacturer shall adhere to the standards KS 2857, KS 2858 and the national, regional and international standards, codes of practice and other best practices in the baling of fibre crops and fibre crop products. Section 23(5) Sisal fibre crops and fibre crop products shall be packaged in bales weighing either fifty, one hundred, two hundred, or two hundred and fifty k...

Section 24. Grading and inspection of fibre crops and fibre crop products Section 24(1) Every grower and retailer shall sample and grade all fibre crops and fibre crop products in accordance with the grades set out in the Fifth Schedule. Section 24(2)(a) apply to the Authority for inspecting and grading in Form AFA/FCD/A10 as set out in the First Schedule; and Section 24(2)(b) supply samples of the person’s fibre crops and fibre crop products to the Authority. Section 24(3)(a) within seven days of receiving the application and the samples, issue to a successful applicant a grading report; or Section 24(3)(b) within three days of receiving the application and the samples, reject the application and indicate the reasons thereof. Section 24(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 24(4)(b) appeal to Court. Section 24(5) Upon resubmission of a satisfactory application under subregulation (4) (a), the Authority shall issue the applicant a grading report, within seven days. Section 24(6)(a) specifying the results of the analysis and the recommended grade of the samples delivered to it; and Sectio...

Section 25. Classing and grading of cotton lint Section 25(1) The Authority shall class and grade all cotton lint in accordance with the grades set out in the Fifth Schedule. Section 25(2)(a) apply to the Authority for classing and grading in Form AFA/FCD/A10 as set out in the First Schedule; and Kenya Subsidiary Legislation, 2020 1451 Section 25(2)(b) supply samples of the person’s cotton lint to the Authority. Section 25(3)(a) within seven days of receiving the application and the samples, issue to a successful applicant a classing and grading report; or Section 25(3)(b) within three days of receiving the application and the samples, reject the application and indicate the reasons thereof. Section 25(4)(a) within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection; or Section 25(4)(b) appeal to Court. Section 25(5) Upon resubmission of a satisfactory application under subregulation (4)(a), the Authority shall issue the applicant a classing and grading report, within seven days. Section 25(6)(a) specifying the results of the analysis and the recommended grade of the samples delivered to it; and Section 25(6)(b) in Form AFA/F...

Section 26. Prohibition against adulteration Section 26(1) A person shall not adulterate fibre crops or fibre crop products. Section 26(2) A person who contravenes subregulation (1) commits an offence.

Section 27. Unprocessed sisal leaf Section 27(1) A person shall not buy an unprocessed sisal leaf from a smallholder grower unless the payment for the leaf is pegged on the fibre crop or the fibre crop product resultant from the leaf. Section 27(2) A person who contravenes subregulation (1) commits an offence.

Section 28. Fibre Crops and Fibre Crop Products Pricing Committee Section 28(1) There is established a Fibre Crops and Fibre Crop Products Pricing Committee. Section 28(2) The Committee shall be responsible for the development of the pricing formula for fibre crops and fibre crop products. Section 28(3)(a) the Principal Secretary responsible for the crop development; Section 28(3)(b) the Director-General of the Authority; Section 28(3)(c) one County Executive Committee Member nominated by the Council of Governors; Section 28(3)(d) one representative of the growers of cotton fibre crop; Section 28(3)(e) one representative of the growers of sisal fibre crop; Section 28(3)(f) one representative of ginners; Section 28(3)(g) one representative of the manufacturers of sisal fibre crop products; Section 28(3)(h) one representative of the exporters and importers of cotton fibre crops and fibre crop products; Section 28(3)(i) one representative of the exporters and importers of sisal fibre crops and fibre crop products; and Section 28(3)(j) two representatives of the spinning and textile millers. Section 28(4) The chairperson of the Committee shall be the Principal Secretary responsible for...

Section 29. Movement permit Section 29(1) The respective County Government from where the fibre crops have been cultivated shall issue a movement permit to a transporter of the fibre crops. Section 29(2) The respective County Government from where the manufacturing factory is registered as a business entity shall issue a movement permit to a transporter of the fibre crops or fibre crop products that the factory handles. Section 29(3) The movement permit issued in accordance with subregulation (1) shall indicate the origin, all the other counties through which the fibre crops are to be transported and the destination of the fibre crops. Section 29(4) The movement permit issued in accordance with subregulation (2) shall indicate the specific manufacturing factory from which the fibre crops or fibre crop products are dispatched, all the other counties through which the fibre crops and fibre crop products are to be transported and the destination of the fibre crops and fibre crop products. Section 29(5) A movement permit issued in accordance with this regulation shall be valid in each of the county governments through which fibre crops or fibre crop products are transported and the cou...

Section 30. Agreements between growers and dealers Section 30(1) A registered grower may enter into agreement with a person dealing in fibre crops or fibre crop products. Section 30(2) The agreement entered into in accordance with this regulation (1) shall be as set out in the Fourth Schedule. Section 30(3) A person who intends to sponsor the cultivation of fibre crops shall enter into an agreement with the growers or growers’ association. Section 30(4) A copy of the agreement entered into in accordance with this regulation shall be deposited with the respective County Government and the Authority.

Section 31. Appointment of crops inspectors Section 31(1) The crops inspectors appointed by Authority in accordance with section 27 of the Act shall be responsible for carrying out inspections of all fibre crops and fibre crop products to ensure compliance to requirements of the Act and these Regulations. Section 31(2)(a) is a Kenyan citizen; Section 31(2)(b) satisfies the requirements of Chapter Six of the Constitution; Section 31(2)(c) a diploma in agriculture or agriculture related field and a minimum of two years’ relevant experience; or Section 31(2)(c)(i) a diploma in agriculture or agriculture related field and a minimum of two years’ relevant experience; or Section 31(2)(c)(ii) a bachelor’s degree in agriculture or agriculture related field from a recognized university and a minimum of a year’s relevant experience; and Section 31(2)(d) has undergone training in relevant course in inspection. Section 31(3) A county government may nominate a qualified person for consideration and appointment as a crop inspector. Section 31(4) The Authority may publish in the Gazette the crops inspectors appointed under section 27 of the Act. Section 31(5) A person appointed as a crops inspect...

Section 32. Inspections and surveillance Section 32(1)(a) inspect the field operations of a grower when cultivating fibre crops; Section 32(1)(b) inspect the handling, packaging, labelling, pricing, grading, sampling, units of measurement, and handling of fibre crops or fibre crop products and any equipment used thereof; Section 32(1)(c) inquire for such information as he deems necessary from any person in relation to the cultivation or dealing in fibre crops or fibre crop products; Section 32(1)(d) enter any land, premises or vehicle, used by a grower or retailer of fibre crops or fibre crops products; Section 32(1)(e) request for the production of a licence or certificate for examination; Section 32(1)(f) seize and remove any article or thing which the inspector has reasonable grounds for believing that an offence under the Act or these Regulations is being or has been used to commit; Section 32(1)(g) monitor and enforce the compliance to standards and codes of practice; and Section 32(1)(h) carry out surveillance at entry points and in areas where fibre crop or fibre crop products are traded. Section 32(2) The owner, occupier or any person, on premises or a vehicle on which a cr...

Section 33. Illegal manufacture and possession Section 33(1)(a) has been grown, manufactured or processed otherwise than in accordance with the Act and these Regulations; or Section 33(1)(b) is acquired from an unregistered grower or dealer. Section 33(2) A person who contravenes subregulation (1) commits an offence and shall be liable, on conviction, to a fine not exceeding ten million shillings, or to imprisonment for a term not exceeding five years, or both.

Section 34. Notices issued for non-compliance Section 34(1) Where a person fails to comply with any order made pursuant to these Regulations, the Authority or the respective County Government shall issue that person a fourteen days’ notice of its intention to take the necessary corrective measures to ensure compliance with these Regulations and the Act. Section 34(2) The notice issued under subregulation (2) shall set out the necessary corrective measures which the person addressed in the notice is to take in order to ensure compliance with these Regulations and the Act. Section 34(3) A person who fails to take the necessary corrective measures specified in the notice issued under subregulation (1) shall, may be liable to the penalty prescribed under these Regulations or the Act for failure to comply with the order made pursuant to these Regulations.

Section 35. Revocation and surrender of certificates, licences or permits Section 35(1) The Authority or the respective County government may revoke a certificate, licence or permit, issued by them in accordance with these Regulations, if the conditions of the certificate, licence or permit, have not been complied to. Section 35(2) If a certificate, licence or permit, is revoked, the holder shall immediately surrender it to the Authority or to the respective County Government as the case may be. Section 35(3) A certificate, licence or permit, that is revoked under this regulation shall cease to have effect on the date of its revocation. Section 35(4) The Authority or the respective County Government shall publish all the revoked certificated, licences or permits in a circular which shall be issued to all stakeholders.

Section 36. Appeal process for grant, refusal, renewal, variation or revocation of the conditions of licences Section 36(1) An appeal against the grant, refusal, renewal, variation or revocation of the conditions imposed, on a licence issued under these Regulations, made to the Cabinet Secretary, shall be in writing and be delivered to the Cabinet Secretary within thirty days from the date of notification of the decision by the Authority. Section 36(2) The Cabinet Secretary shall consider the appeal delivered to him in accordance with these Regulations and deliver his decision on the appeal, to all the affected parties within forty-five days after receiving the appeal.

Section 37. General penalty Section A person who contravenes any provision of these Regulations, or commits an offence for which no penalty is prescribed, shall be liable, on conviction, to a fine not exceeding five hundred thousand shillings, or to imprisonment for a period not exceeding one year, or to both.

Section 38. Fees Section 38(1) A person who applies for the services rendered under these Regulations, including the issuance of certificates, licences or permits, and fibre grading shall pay the fees set out in the Eighth Schedule. Section 38(2) A sisal inspection fee at a rate of zero point five percent of the gross free board value per ton, of all imported or exported sisal fibre crops or fibre crop products, shall be charged payable by the exporter or importer, as the case may be.

Section 39. Dispute resolution between growers and dealers Section 39(1) The agreement entered into by a grower and a dealer in accordance with regulation 30, may provide for an arbitration clause for the settlement of disputes that may arise in the performance of the terms of that agreement. Section 39(2) Notwithstanding subregulation (1), a grower and a dealer may enter into a separate agreement that provided for the resolution of disputes that may arise between the grower and the dealer by arbitration. Section 39(3) The resolution of a dispute in accordance with this regulation shall be conducted in the manner the parties and the arbitrator 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.

Section 40. Transitional provisions Section All certificates, licences and permits, validly in force before the coming into operation of these Regulations shall remain valid until their expiry and the holders shall acquire any subsequent certificates, licences and permits in accordance with these Regulations.