The Crops (Sugar) (General) Regulations

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

Section 2. Interpretation Section is not a member of any out-growers' institution;

Section 3. Registration of umbrella millers' associations Section 3(1) Registered millers may organise themselves into an association and register with the Authority as an umbrella association to represent and advocate for the millers' interests. Section 3(2) An association of millers that intends to be registered as an umbrella millers' association shall apply to the Authority for registration as an umbrella millers' association in Form 1 set out in the First Schedule. Section 3(3)(a) within thirty days of submitting an application, issue to a successful applicant a certificate of registration; or Section 3(3)(b) within fifteen days issue the applicant a notice of their rejection of the application specifying the reasons for the rejection. Section 3(4) An applicant who is dissatisfied with the rejection of their application made under subregulation (3)(b) may within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection. Section 3(5) Upon resubmission of a satisfactory application under subregulation (4), the Authority shall issue the applicant a certificate of registration as an umbrella millers' association, within thirty day...

Section 4. Registers maintained by millers Section 4(1) A miller shall maintain a register of the registered out-growers' institutions, growers and other dealers in sugarcane or sugarcane products, with whom the miller has entered into an agreement for the farming or supply of sugar cane. Section 4(2)(a) the particulars of the registered out-growers' institutions; Section 4(2)(b) the particulars of the growers; Section 4(2)(c) the miller's location, land registration number, registration number, and agreement numbers; Section 4(2)(d) the particulars of the sugarcane harvesters; Section 4(2)(e) the particulars of the transporters; and Section 4(2)(f) the particulars of the acreage, varieties, crop cycles and yield of sugarcane per acreage.

Section 5. Registration of growers Section 5(1) A grower may register with any out-growers' institution of their choice. Section 5(2) A grower may register with a miller of their choice.

Section 6. Registration of out-growers' institutions Section 6(1) An out-grower institution which has registered growers in accordance with regulation 5(1) shall register with the Authority. Section 6(2) An out-grower institution that intends to be registered as an out-growers' institution shall apply to the Authority for registration in Form 3 set out in the First Schedule. Section 6(3)(a) within thirty days of submitting an application, issue to a successful applicant a certificate of registration; or Section 6(3)(b) within fifteen days issue the applicant a notice of their rejection of the application specifying the reasons for the rejection. Section 6(4) An applicant who is dissatisfied with the rejection of their application made under subregulation (3)(b) may within fourteen days of the decision, resubmit the application after addressing the reasons raised in the rejection. Section 6(5) Upon resubmission of a satisfactory application under subregulation (4), the Authority shall issue the applicant a certificate of registration, within thirty days. Section 6(6) Where the Authority rejects an application resubmitted under subregulation (4), the applicant may appeal to Court wit...

Section 7. Obligations of a registered out-growers' institutions Section 7(1)(a) organize its out-growers' farms into viable economic units to enable its farmers pool resources for bulk procurement of farm inputs, services and machinery; Section 7(1)(b) promote and represent the interests of its growers; Section 7(1)(c) ensure that its members comply with their obligations as per their agreements; Section 7(1)(d) negotiate the terms of supply of sugarcane to the millers; Section 7(1)(e) co-ordinate the production, harvesting and transport of sugarcane to the millers; Section 7(1)(f) provide financial credit or arrange for financing of its growers for the production of their sugarcane, land clearance and preparation, planting, cultivation and tending, harvesting, transport and the supply of goods and services relating thereto; Section 7(1)(g) provide services, advice and assistance for its growers as may be required; Section 7(1)(h) provide accounting services and record keeping services for its members in respect of their individual operations; and Section 7(1)(i) purchase, sell or otherwise deal in, securing or providing such goods, materials, supplies and services as may be requi...

Section 8. Registers maintained by out-growers' institutions Section 8(1) An out-growers' institution shall maintain a register of its members and the growers who have entered into an agreement with it for the farming or supply of sugarcane. Section 8(2) The register maintained under subregulation (1) shall contain the particulars of the locations, land registration numbers, identity card numbers, agreement numbers, sugarcane harvesters, transporters, acreage, varieties, crop cycles and yield of sugarcane per acreage of its members and the growers who have entered into an agreement with it for the farming or supply of sugarcane. Section 8(3) An out-grower institution which registers smallholder growers shall forward a copy of the register of their smallholder growers to the respective county government and to the Authority at least once in every six months. Section 8(4) A registered out-growers' institution shall notify the Authority of any change in its ownership, by-laws and shareholding. Section 8(5) A registered out-grower institution shall notify the Authority of the appointment of a principal officer or a director within thirty days of the making of such appointment. Section...

Section 9. Registration of umbrella out-growers institutions Section 9(1) Registered out-growers' institutions may organise themselves into an umbrella out-growers' institution and register as such with the Authority to represent and advocate for the interests of its members and the growers who have entered into an agreement with it for the farming or supply of sugarcane. Section 9(2) An umbrella out-growers' institution that intends to be registered as such shall apply to the Authority for registration in Form I set out in the First Schedule. Section 9(3)(a) within thirty days of submitting an application, issue to a successful applicant a certificate of registration; or Section 9(3)(b) within fifteen days issue the applicant a notice of their rejection of the application specifying the reasons for the rejection. Section 9(4)(a) whether the institution is duly registered as an association under existing laws; Section 9(4)(b) the by-laws or constitutional provisions relating to membership, voting rights, rights and obligations of members including the right to join or leave the institution; and Section 9(4)(c) the number of its members. Section 9(5) An applicant who is dissatisfied...

Section 10. Revocation and suspension of registration Section 10(1)(a) the association or institution made a false declaration in the application for registration; Section 10(1)(b) the association or institution engaged in corruption or fraud to obtain the certificate of registration; Section 10(1)(c) without reasonable cause, the association or institution has not complied with a condition of its registration; Section 10(1)(d) the institution has contravened regulation 7; or Section 10(1)(e) the association or institution has not complied with the law under which it is registered. Section 10(2) When the Authority suspends the registration of an association or institution under subregulation (1), the Authority shall issue the association or institution a notice of the suspension. Section 10(3) The notice issued under subregulation (2) shall set out the reasons for the suspension and the corrective measures that the association or institution should undertake to reinstate their registration. Section 10(4) The Authority shall reinstate the registration of an association or an institution, who complies with the corrective measures set out in the notice issued under subregulation (3)....

Section 11. Returns by miller and out-growers' institutions Section All registered millers and registered out-growers' institutions shall submit to the Authority and the relevant county government, annual returns of the registers maintained under this Part before the thirty-first date of January every year following the conclusion of the data collection period.

Section 12. Agreements for the harvesting of sugarcane Section 12(1) A grower may enter into an agreement with a miller, out-growers' institution or any other person, for the harvesting of the grower's sugarcane. Section 12(2) An agreement for the harvesting of sugarcane on behalf of a grower, shall be in Form 5 set out in the First Schedule

Section 13. Agreements for the transportation of sugarcane Section 13(1) A grower may enter into an agreement with a miller, out-growers' institution or any other person, for the transportation of the grower's sugarcane. Section 13(2) An agreement for the transportation of sugarcane on behalf of a grower, shall be in Form 5 set out in the First Schedule.

Section 14. Agreements between growers and millers Section 14(1) A grower may enter into an agreement with a miller for the farming or supply of the grower's sugarcane. Section 14(2) An agreement referred to in subregulation (1), shall be in Form 6 set out in the First Schedule. Section 14(3) Despite subregulation (1), a grower may enter into an agreement with a miller for the leasing of part of their land to the miller on the terms and conditions mutually agreed between them.

Section 15. Agreements between outgrowers' institutions and growers Section 15(1) A grower may enter into an agreement with a registered out-growers' institution for the farming and supply of the grower's sugarcane. Section 15(2) An agreement referred to in subregulation (1) shall be in Form 7 set out in the First Schedule.

Section 16. Agreements between outgrowers' institutions and millers Section 16(1) A registered out-growers' institution shall enter into an agreement with a miller for the farming or supply of the sugarcane on behalf of the growers who the institution have entered into an agreement under regulation 14. Section 16(2) An agreement referred to in subregulation (1) shall be in Form 8 set out in the First Schedule.

Section 17. Registration of agreements Section A person who enters into an agreement in accordance with this Part shall submit the agreement to the Authority for registration.

Section 18. Sugarcane development plans Section 18(1) A miller shall develop and submit a sugarcane development plan to the Authority and the respective County Government. Section 18(2) An out-growers' institution shall develop and submit a sugarcane development plan to the Authority and the respective County Government. Section 18(3) A sugar development plan shall be based on the number of growers, the size of the land under cultivation, sugarcane varieties cultivated, yields of the sugarcane cultivated and the maturity profile of the sugarcane. Section 18(4) The purpose of a sugarcane development plan shall be to facilitate economic harvesting and transportation. Section 18(5) A sugarcane development plan shall be developed in consultation with the growers.

Section 19. Adequate milling capacity Section 19(1) Subject to subregulation 19(2), a miller shall ensure that they have adequate milling capacity in accordance with the sugarcane development plan developed and submitted in accordance with regulation 18. Section 19(2) A miller shall operate their mill in accordance with the registered milling capacity, the terms of sugarcane throughput per day and the sugar recovery percent set by the Authority. Section 19(3) A miller may in writing apply to the Authority for authorization to change the installed milling capacity by more than twenty percent of the registered capacity. Section 19(4) A miller who makes any variation of the installed capacity without prior authorisation from the Authority, commits an offence.

Section 20. Report of changes to millers Section 20(1) A grower who is a member of a registered out-growers' institution shall report any changes to the name of the grower's farm, land reference number or any other particulars, to the out-growers', institution the grower has registered with and the miller with whom the grower has entered into an agreement for the farming or supply of the grower's sugarcane. Section 20(2) An independent grower, shall report any changes to the name of the grower's farm, land reference number or any other particulars, to the miller with whom the grower has entered into an agreement for the farming or supply of the grower's sugarcane.

Section 21. Use of certified seeds Section A grower shall only use seeds that are certified accordance with the Seeds and Plant Varieties Act (Cap. 326).

Section 22. Payment statements Section 22(1) A miller shall issue a grower issue a grower with whom the miller has entered into an agreement in accordance with regulation 14, a payment statement that indicates the quantity of sugarcane delivered, the price and agreed deduction or recovery on the payment, as agreed upon by the grower and the miller. Section 22(2) A registered out-growers' institution shall issue a grower issue a grower with whom the institution has entered into an agreement in accordance with regulation 25, a payment statement that indicates the quantity of sugarcane delivered, the price and agreed deduction or recovery on the payment, as agreed upon by the grower and institution. Section 22(3) A miller shall issue a registered out-growers' institution with whom the institution has entered into an agreement in accordance with regulation 16, a payment statement that indicates the quantity of sugarcane delivered, the price and agreed deduction or recovery on the payment, as agreed upon by the miller and institution.

Section 23. Sugarcane Pricing Committee Section 23(1) There is established a Sugarcane Pricing Committee. Section 23(2)(a) a chairperson appointed by the Cabinet Secretary from amongst the members of the Sugarcane Pricing Committee; Section 23(2)(b) one person nominated by the Ministry responsible for matters relating to agriculture and appointed by the Cabinet Secretary; Section 23(2)(c) two persons nominated by the Authority and appointed by the Cabinet Secretary; Section 23(2)(d) two persons nominated by the registered umbrella out-growers' institution and appointed by the Cabinet Secretary; Section 23(2)(e) two persons nominated by the registered umbrella millers association and appointed by the Cabinet Secretary; and Section 23(2)(f) two persons nominated by the Council of Governors from the county governments from the sugarcane growing areas and appointed by the Cabinet Secretary. Section 23(2A) In appointing persons under subregulation (2)(b), (c), (d), (e) and (f), the Cabinet Secretary shall take into account the gender, regional and ethnic diversity of the persons to be appointed. Section 23(2B) A person shall not be nominated for appointment under subregulation (2)(b), (...

Section 24. Sugarcane testing services Section 24(1) The Sugarcane Pricing Committee may conduct sugarcane testing services to determine the sucrose content of sugarcane to determine the Sugarcane Pricing Formula. Section 24(2) The Sugarcane Pricing Committee may contract the services of an expert in conducting sugarcane testing services.

Section 25. Burnt sugar Section 25(1)(a) a grower had authorised the harvesting of his burnt sugarcane before the sugarcane was harvested; Section 25(1)(b) the harvested sugarcane was delivered to the mill weighbridge while still fresh; and Section 25(1)(c) sugarcane of an acceptable quality was harvested. Section 25(2) The authorisation referred to in subregulation (1)(a) shall be in the form of a separate agreement between a grower and a miller and shall set out conditions for the miller's acceptance the grower's burnt sugarcane. Section 25(3) An agreement referred to in subregulation (2) shall be in Form 9 set out in the First Schedule.

Section 26. Approved standards Section 26(1) A miller shall manufacture, package, transport or store in a warehouse, sugar and by-products of sugar in accordance with the Kenyan specifications for sugar set out in the Second Schedule. Section 26(2) All brands for packaging, including a brand which is repackaged for sale by a distributor, shall register with the Authority for purposes of traceability. Section 26(3) A dealer shall apply for registration under subregulation (2) in Form 10 set out in the First Schedule. Section 26(4) The Authority shall issue a certificate of Registration in Form 11 as set out in the First Schedule to a successful applicant. Section 26(5) A person who fails to comply with subregulations (1) or (2) commits an offence and 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. [L.N. 214/2020, r. 3.]

Section 27. Stay of execution Section Any person against whom a decision to revoke or suspend their registration, may request for stay of the execution of that decision for thirty days within which he may effect remedial action.