The Crops (Nuts and Oil Crops) Regulations

Section 1. Citation Section These Regulations may be cited as the Crops (Nuts and Oil Crops) Regulations.

Section 2. Interpretation Section In these Regulations unless the context otherwise requires— "Act" means the Crops Act (Cap. 318); "agent" means a dealer acting on behalf of a licensed player and can be a marketing agent or clearing agent; "annual crop" means plants that complete their entire life cycle from seed to flower and to seed within a single growing season in this case includes rape seed, groundnuts, sesame, castor bean, sunflower, safflower, linseed, jojoba and any other similar nut and oil crop as may be scheduled; "authorized agent" means a person appointed in writing by the Authority to carry out specific duties and functions in the nuts and oil crops subsector on behalf of the Authority; "Authority" means the Agriculture and Food Authority established by section 3 of the Agriculture and Food Authority Act (Cap. 317); "certificate" means a document issued by the Authority or the County Government for a specified purpose upon fulfilling certain requirements; "collection center" means a designated site that is established for the purposes of storage and marketing of different nuts and oil crops produce and products; "commercial nursery" means an approved site where nuts...

Section 3. Application Section These Regulations shall apply to the nuts and oil crops set out in the First Schedule.

Section 4. Purpose of Regulations Section 4(1) The purpose of these Regulations is to guide the development, promotion, and regulation of scheduled nuts and oil crops for the benefit of the growers and other stakeholders in the nuts and oil crops industry. Section 4(2)(a) the production, harvesting, processing and marketing of nuts and oil crops; Section 4(2)(b) promotion of best practices in the sub sector; Section 4(2)(c) registration and licensing of all players along the value chain; Section 4(2)(d) the recommendation of general industry agreements or contracts; Section 4(2)(e) the development and enforcement of quality and safety standards for compliance; Section 4(2)(f) the collection, collation, maintenance and management of statistical data related to the sub sector; Section 4(2)(g) the imposition and administration of levies; and Section 4(2)(h) regulation of the sub sector.

Section 5. Registration of small-holder growers and grower associations Section 5(1) A small-holder grower may, for purposes of accessing economies of scale, register with an association, common interest groups, community based organizations and co-operatives registered by the respective County Government under these Regulations. Section 5(2) A small-holder grower association cultivating nuts and oil crops shall apply to the respective County Government for registration in Form A1 as set out in the Second Schedule. Section 5(3) The respective County Government shall issue a certificate of registration to small-holder grower associations in Form A2 as set out in the Second Schedule. Section 5(4) All small-holder grower associations cultivating nuts and oil crops shall maintain a register of their members in the manner set out in Form A3 of the Second Schedule. Section 5(5) The Authority shall, in consultation with the respective county government, using the information obtained from a duly filled Form A3 of the Second Schedule, maintain a register of all smallholder growers associations in the manner set out in Form A4 of the Second Schedule.

Section 6. Registration of plantation growers Section 6(1) A nuts and oil crops plantation grower may apply to the Authority for registration as set out in Form B1 of the Second Schedule. Section 6(2) The Authority shall issue a Certificate of Registration to a registered plantation grower in Form B2 as set out in the Second Schedule.

Section 7. Commercial Nursery registration and licensing. Section 7(1) A person who intends to establish or operate a commercial nursery in any area shall register with the Authority and apply for a licence in Form C1 set out in the Second Schedule. Section 7(2) A person who contravenes the provisions of this regulation commits an offence.

Section 8. Issuance of commercial nursery license. Section 8(1) The Authority shall issue a licence to a successful applicant in Form C2 set out in the Second Schedule within thirty days, upon payment of fee set out in Third Schedule. Section 8(2) The Authority shall, before issuing the licence under sub regulation (1), satisfy itself that the applicant has met all the requirements as set out in the Part A of the Fourth Schedule. Section 8(3) An unsuccessful applicant shall be notified in writing within seven days of the decision, of the reasons for the rejection of the application. Section 8(4) The applicant under sub regulation (2) may re-apply for registration upon fulfilment of all the necessary requirements. Section 8(5) A person who contravenes the provisions of this regulation commits an offence.

Section 9. Mother plants/ mother block registration Section 9(1) A persons who intends to establish a nuts and oil crops mother plant and mother block for use as source of clean planting materials or scions for grafting or budding shall register the mother plant/mother block with government agencies responsible for national plant protection matters. Section 9(2) The national plant protection agencies shall share the details of persons registered under sub regulation (1) with the Authority and with the respective County Government. Section 9(3) A nursery operator shall only source their planting materials from mother plant /mother blocks registered under these Regulations.

Section 10. Registration and licensing of traders, retailers, transporters, marketing agents, warehousemen and distributors Section 10(1) A person who intends to aggregate, trade, retail, transport, distribute or warehouse nuts and oil crops produce and products for commercial purposes shall make an application for registration and licensing to the Authority in Form DI as set out in the Second Schedule. Section 10(2) The Authority shall issue a licence to a successful applicant under sub regulation (1) in Form D2 set out in the Second Schedule upon payment of fees set out in the Third Schedule. Section 10(3) A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction, to imprisonment for term not exceeding three years or to a fine not exceeding five million shillings, or to both.

Section 11. Registration and licensing of importers and exporters Section 11(1) A person who intends to import or export nuts and oil crops produce or products shall make an application for registration and licensing to the Authority in Form E1 as set out in the Second Schedule and meet the requirements set out in Part C of the Fourth Schedule. Section 11(2) The Authority shall, within fourteen days of the application, issue a successful applicant with a licence in Form E2 set out in the Second Schedule and upon payment of the fee set out in Third Schedule. Section 11(3) A person who contravenes the provisions of this regulation commits an offence and shall upon conviction, be liable to imprisonment for term not exceeding three years or to a fine not exceeding five million shillings, or to both.

Section 12. Application for approval to establish a manufacturing facility Section 12(1) A person who intends to establish a new manufacturing facility shall, before establishing the manufacturing facility, apply for approval from the Authority using the application form set out in Form F1 in the Second Schedule. Section 12(2) The Authority shall within thirty days of the application, verify that the applicant under sub regulation (1) has fulfilled all the requirements set out in Form F2 of the Second Schedule before issuing the applicant with a letter of interim authority. Section 12(3) Upon completion of the facility, the applicant shall make a written application for inspection of the facility to the Authority and pay the inspection fee set out in Third Schedule. Section 12(4) Upon receipt of the letter under sub regulation (3) the Authority shall conduct an inspection of the facility and issue the applicant with a letter indicating the outcome of inspection within thirty days of the inspection. Section 12(5) The letter of interim authority issued under sub regulation (2) shall be valid for a period two years and shall be renewable once for a period of one year where the constru...

Section 13. Issuing of Manufacturing Licence Section 13(1) A person who intends to manufacture nuts and oil crops produce or products shall make an application for a licence to the Authority in Form G1 as set out in the Second Schedule. Section 13(2) The Authority shall consider the application under paragraph (1) and notify the applicant of the decision on grant within thirty days. Section 13(3) The Authority shall, at least thirty days before granting a licence under these Regulations, give notice of the proposed grant in the Gazette . Section 13(4) Upon the expiry of the notice issued under sub regulation (3), and where no objections have been raised, the Authority shall issue a licence to a successful applicant in Form G2 set out in the Second Schedule upon payment of the fee set out in the Third Schedule. Section 13(5) Where, upon the publication of the notice under sub regulation (3) an objection is raised, the aggrieved party may appeal to the Cabinet Secretary in the manner set out in regulation 18.

Section 14. Renewal of Licences Section 14(1) Every licence granted under these Regulations shall expire on 30th of June following the date of issue unless otherwise stated or earlier cancelled. Section 14(2) Applications for renewal shall be made to the Authority not later than the first day of the month of June in which the current license is due to expire. Section 14(3) Where the applicant fulfils all the requirements necessary for the renewal of the licence and pays the renewal fee set out in Third Schedule, the Authority shall renew the licence within fifteen days after the expiry of the current licence.

Section 15. Additional information Section The Authority or the county government as the case may be, may require an applicant to supply such additional information as it may consider necessary in relation to the application for registration, licence or renewal of a licence or registration.

Section 16. Decision on registration, licensing and renewal Section 16(1) The Authority or the county government as the case may be shall, when considering an application for new registration or renewal of registration, make a decision within fifteen days of the application. Section 16(2) The Authority shall, when considering an application for a new licence under these Regulations, make a decision within thirty days upon receipt of a complete application and shall forward the details of successful applicants for publication in the Gazette for thirty days. Section 16(3) The Authority shall, when considering an application for renewal of a licence under these Regulations, make a decision within thirty days upon receipt of an application Section 16(4) In case of an unsuccessful application, the Authority shall review re-submitted application for consideration upon fulfilling the set requirements.

Section 17. Licensing fee. Section Every dealer and manufacturer shall pay the licensing fee set out in the Third Schedule.

Section 18. Revocation, suspension or varying of a licence Section 18(1)(a) fails to comply with these Regulations or the conditions set out in the licence; or Section 18(1)(b) commits an offence under the Act, these Regulations or any other written law in respect of the activity for which they have been licensed. Section 18(2) An applicant for a licence who is aggrieved by the decision of the Authority in respect of the grant, refusal, renewal, variation or revocation or the conditions imposed on the licence may appeal to the Cabinet Secretary for a review of the decision of the Authority in accordance with section 25 of the Act. Section 18(3) The appeal 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 18(4) The Cabinet Secretary shall consider the appeal and give a written feedback to the affected party within forty five days of receipt of the appeal.

Section 19. Certificate of registration, license or permit not transferable Section A certificate of registration, licence or permit issued under these Regulations shall not be transferrable to any other entity and shall only be applicable to the parcel of land, nursery or premise to which it has been issued.

Section 20. Approved seed or planting material source Section 20(1) A person growing nuts and oil crops shall procure seeds or planting materials or seedlings from sources approved by the government agencies responsible for inspection and certification of seeds and planting materials or seedlings. Section 20(2) A person who contravenes the provisions of this regulation commits an offence.

Section 21. Mother plants/ mother block and nursery establishment. Section 21(1) A mother plant and mother block for use as source of clean planting material shall be established in accordance with the guidelines issued by the relevant government agencies in consultation with the respective County Government from time to time. Section 21(2) A nursery shall be established in accordance with any guidelines issued by the Authority in consultation with the respective County Government from time to time. Section 21(3) A person who contravenes the provisions of this regulation commits an offence.

Section 22. Contracts between grower or dealer or manufacturer. Section 22(1)(a) sign a contract with the grower and register the contract with the respective County Government as set out in Part B of the Fifth Schedule; Section 22(1)(b) notify the Authority and the relevant County Government of any breach to the contract within thirty days of the breach for purposes of initiating an arbitration process. Section 22(2) A person who contravenes the provisions of these regulation commits an offence.

Section 23. Production and processing Section 23(1) Nuts and oil crops produce and products shall be produced, harvested, sorted, graded, packaged, transported and stored or warehoused in accordance with the guidelines set out in Part C of the Fifth Schedule and the applicable national, regional and international standards. Section 23(2) Every grower and dealer shall harvest, sort, grade, pack, transport and store or warehouse nuts and oil crops when the produce is physiologically mature for the intended use. Section 23(3)(a) in the case of macadamia and cashew nut, fruit left to fall to the ground before being collected; Section 23(3)(b) in the case of macadamia, float test; Section 23(3)(c) in the case of macadamia and peanut, a chocolate brown inner side of husk or pod; Section 23(3)(d) in the case of peanut, a mature pod that is hard to split; Section 23(3)(e) in the case of sunflower, the flower head should turn light yellow or brown and the seeds shall be dry and protruding from flower head; Section 23(3)(f) in the case of sesame, the plant and capsule shall be dry and the seed to have at least six percent moisture content. Section 23(4) Notwithstanding the provisions of sub-...

Section 24. Traceability of produce and products. Section 24(1) The Authority may develop, implement and maintain a detailed traceability system to track and trace the history and location at all stages of production, processing and distribution of the nuts and oil crops produce and products and keep the records for at least two years Section 24(2) Every manufacturer or dealer shall develop and maintain records of who they buy from and who they sell to for the purpose of feeding into the traceability system of the Authority. Section 24(3)(a) source of planting material; Section 24(3)(b) planting date; Section 24(3)(c) application rates and date of farm inputs use; Section 24(3)(d) farm operations type and date done; Section 24(3)(e) harvesting dates and quantities; and Section 24(3)(f) post-harvest management records. Section 24(4) A person who contravenes the provision of this regulation commits an offence.

Section 25. Bi-annual verification of traceability Section The Authority shall conduct a bi-annual routine verification of the traceability of produce and products along the value chain.

Section 26. Manufacturing and being in possession of scheduled nuts and oil crops Section 26(1) A person shall not manufacture or be in possession of a scheduled nuts and oil crop product for sale without a licence issued in accordance with these Regulations. Section 26(2) A person who manufactures or is in possession of a scheduled nuts and oil crops produce or product in contravention to the provisions of these Regulations commits an offence and shall be liable, upon conviction, to a fine not exceeding ten million shillings, or to imprisonment for a term not exceeding five years, or both.

Section 27. Buying and selling of nuts and oil crops produce Section 27(1) For purposes of traceability, the buying and selling of nuts and oil crops produce and products from small-holder farmers for commercial purposes, may be done in collection centers. Section 27(2) Nuts and oil crops produce and products from plantation growers may be sold directly to the market as long as clear and verifiable traceability system is used.

Section 28. Collection centers Section 28(1) The Authority shall, in consultation with the respective County Government use guidelines as set out in Part A of the Fifth Schedule for the establishment and uses of collection centers. Section 28(2) The collection centers may be owned or managed by county governments, growers' associations, dealers or the manufacturers. Section 28(3) The guidelines under sub regulation (1) may be reviewed from time to time as and when necessary.

Section 29. Importation and exportation of nuts and oil crops produce and products Section 29(1) All nuts and oil crops produce and products shall be imported or exported through a customs port of entry or exit. Section 29(2) A licensed importer or exporter of nuts and oil crops produce and products shall apply for an export or import permit electronically through single window system for each consignment of imported or exported nuts and oil crops produce or products. Section 29(3) Each consignment of nuts and oil crops produce or products for import or export shall be declared at the port of entry or exit and may be physically verified by the Authority or its authorized agent. Section 29(4)(a) original copies of importation or exportation documentations; Section 29(4)(b) evidence of payment of duties and levies. Section 29(5) Upon satisfying the conditions for import or export of nuts and oil crops produce and products under these Regulations, the Authority shall approve for release of the consignment to the consignee. Section 29(6) The Authority shall, in collaboration with other government agencies detain, at the cost of the consignee, any consignment that is not accompanied by...

Section 30. Field and Manufacturing facility Inspection Section 30(1) The Authority and county government together with other government agencies responsible for ensuring quality produce and products may conduct field inspection of nuts and oil crops grown to ascertain quality control during production. Section 30(2) The Authority shall conduct the first inspection of newly established manufacturing facility upon payment of fee as set out in Third schedule, to ensure compliance with national, regional and international standards on food safety and good manufacturing practices. Section 30(3) The Authority shall conduct quarterly inspections, upon payment of fees as set out in Third schedule, on existing manufacturing plants to ensure conformity to standards.

Section 31. Crop inspectors appointment Section 31(1) The Authority shall conduct inspection of farms, nurseries, manufacturing facilities, stores and warehouses and transport vehicle for all scheduled nuts and oil crops produce and products to ascertain compliance with the requirements of the Act, these Regulations and other relevant regional and international standards. Section 31(2) For farm inspection the Authority may jointly conduct inspections in consultation with the County Executive Committee Members responsible for matters agriculture. Section 31(3) The Authority shall gazette inspectors upon their appointment. Section 31(4)(a) be a Kenyan citizen; Section 31(4)(b) satisfy the requirements of Chapter Six of the Constitution; Section 31(4)(c) be a holder of diploma in agriculture or related agricultural field from a recognized institution and a minimum of two years of relevant experience; or Section 31(4)(d) be a bachelor's degree holder in agriculture or agriculture- related field from a recognized university; and Section 31(4)(e) have basic training in any relevant course on crop inspection.

Section 32. Functions of crop inspectors Section conduct inspection and compliance audit to growers, dealers and manufacturers from time to time to ensure compliance to these Regulations;

Section 33. Entry inspection and obstruction of crop inspectors. Section 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.

Section 34. Compliance with quality standards. Section All nuts and oil crops produce or products offered for sale shall comply with relevant national, regional and international standards and where applicable food safety and hygiene requirements and phytosanitary requirements.

Section 35. Sampling and testing of produce and products Section 35(1) The Authority in collaboration with other government agencies shall randomly sample, test and analyze different nuts and oil crops produce and products in collection centers, warehouses, markets and manufacturing facilities to ensure conformity to food safety and quality standards as provided for in national, regional, international and any other relevant laws. Section 35(2) The Authority shall issue an annual standards conformity certificate to a buyer, warehouseman, transporter, importer and exporter. Section 35(3) The Authority shall seize or remove at the cost of the owner any produce or product that does not conform to food safety, quality and any other requirement in the Regulations. Section 35(4) The Authority shall immediately liaise with other relevant government agencies for disposal or destruction of the seized or removed product or produce.

Section 36. Dispute Resolution procedure Section 36(1) An agreement to refer a dispute between a grower and a crop 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 36(2) A dispute arising between a grower and other crop dealers may be notified in writing and presented by the aggrieved party or their advocate to an arbitrator that has been mutually agreed between the parties and shall have attached thereto copies of the relevant documents relating to the dispute. Section 36(3) The aggrieved parties are free to agree on the procedure to be followed by the arbitrator in the conduct of the proceedings. Section 36(4) Failing an agreement under sub-regulation (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.

Section 37. Validity of licenses and certificates of registration Section All licenses and annually renewed certificates of registration issued under these regulations shall remain in force until the thirtieth of June next following the date of issue, unless earlier cancelled.

Section 38. Fees and levies Section 38(1) The Cabinet Secretary may charge fees for inspections and licenses for the dealers and manufacturers and impose levies on imports and exports as set out in the Third Schedule. Section 38(2) Neither the Authority nor the county governments shall charge any registration fee.

Section 39. Submission of returns Section 39(1) Any person who registers small holder growers shall submit annual returns to the respective county government in Form H1 as set out in the Second Schedule by 30th of January every year. Section 39(2) A plantation grower of nuts and oil crops produce and product shall submit annual returns to the Authority in Form H1 as set out in the Second Schedule by 30th of January every year. Section 39(3) Every registered nursery operator shall not later than the fifteen day of the first month of every quarter of a financial year complete and submit to the respective county government, statistical returns in Form H2 as set out in the Second Schedule. Section 39(4) Every dealer and manufacturer of nuts and oil crops produce and product shall fill quarterly returns to the respective county government in Form H3 as set out in the Second Schedule not later than the tenth day of the first month after the end of the quarter. Section 39(5) An importer or exporter of nuts and oil crops produce and products shall submit annual returns of the imports or exports transactions to the Authority in Form H3 as set out in the Second Schedule.

Section 40. General penalty Section A person who commits an offence under these Regulations, for which 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 41. Transition Section All licenses in respect of nuts and oil crops existing before the coming into operation of these Regulations shall remain valid until their expiry, and subsequent licenses shall be issued under these Regulations.