The Dairy Industry (Registration, Licensing, Cess and Levy) Regulations

Section 5. Registration of primary producers Section 5(1) A person who wishes to be a primary producer shall register under this regulation. Section 5(2) Paragraph (1) shall not apply to a primary producer who produces milk and sells to a neighbor for domestic consumption. Section 5(3) A person who contravenes sub-regulations (1) or obtains registration through fraudulent misrepresentation of any material fact commits an offence and is liable to a fine not exceeding two thousand shillings or one-month imprisonment or to both.

Section 6. Application for registration Section 6(1) Registration of a primary producer shall be submitted to the respective county department and shall be in Form A of the First Schedule. Section 6(2) Where a primary producer is a member of a cooperative society, other registered producer groups, the cooperative, producer group or aggregator and not the primary producer, shall submit the list of its members for registration with the County Government. Section 6(3) Upon receipt of a dully filled Form A from a primary producer, the County Government shall without prejudice register the primary producer and issue the primary producer with a unique number. Section 6(4) No fee shall be payable by a primary producer as a requirement for registration. Section 6(5) The registration as a primary producer is a one-off process. Section 6(6) A county department shall establish strategies to ensure that every primary producer is registered.

Section 7. Register of primary producers Section 7(1) A dairy cooperative society, a producer group or aggregator shall maintain an updated register of its members who are primary producers. Section 7(2) A county government shall maintain and update, on quarterly basis, a register of all primary producers. Section 7(3) The county government shall submit to the Board details of registered primary producers on quarterly basis, in Form F in the Sixth Schedule. Section 7(4) The Board shall annually update the register kept pursuant to these Regulations. Section 7(5) A primary producer who ceases to operate as a primary producer shall notify the respective county government for deregistration as a producer. Section 7(6) A person who has been deregistered but who wishes to resume operations shall make a fresh application for registration in accordance with the provisions of regulation 6.

Section 8. Inspection of register Section 8(1) A register maintained pursuant to this regulation shall be open to inspection by any interested person only for official or legitimate purpose excluding commercial and advising purposes and for that reason the register shall at all times during working hours, be open to inspection in a place accessible to the person seeking to inspect and such person may, at his own cost, take notes there from or photocopy the whole or part of the contents of the register. Section 8(2) Where a person, other than an officer of the county department in their official capacity, makes notes from or photocopies contents of a register as is permitted under sub regulation (1), the person shall pay to the account of the county government such an amount of inspection fee as the county may determine from time to time and the fee charged shall take into account any mutilation, defacement or mishandling, as the case may be, of the register by the person inspecting. Section 8(3) The county department may make corrections of any clerical error apparent on the register, but shall not make corrections of any substantive nature. Section 8(4) A record of all errors corr...

Section 9. Dairy business licence Section 9(1) A person shall not carry on the business of a dairy business operator unless the person has a valid dairy business licence from the relevant county government. Section 9(2) An application for a dairy business licence shall be in Form B of the Second Schedule. Section 9(3) The county government shall consider and make a decision on the application and shall communicate to the applicant within 30 days. Section 9(4) A licence shall be valid for 12 months from the date of issue. Section 9(5) Delays in the processing of Dairy Business Permit from the county government will not affect the operations of the dairy provided that the application for a business permit had already been submitted by the dairy business operator. Section 9(6) A person who has submitted an application for a dairy business licence under this Part may continue his operations while awaiting the communication referred to in paragraph (3). Section 9(7) Where the county government rejects an application for a dairy business license, the applicant shall cease their operations as a dairy business operator with effect from the date of receipt of the communication of rejection....

Section 10. Licensing fee Section 10(1) The fees payable on an application for a dairy business licence shall be as set out in Form F of the Fifth Schedule. Section 10(2) A county government may waive part of or all the fee required under this regulation.

Section 11. Condition of issuance of licence Section Despite regulation 9 no application for a dairy business licence shall be considered or a licence issued unless the applicant has in force a valid regulatory permit issued under regulation 14.

Section 12. Imposition of cess Section 12(1) A county government may impose cess not exceeding 0.5 per cent of the farm gate price payable by a primary producer, which may be collected by the aggregator or the Board and remitted to the county department within a period of twenty days after the last day of the month during which the dairy produce in respect of which the cess is payable was aggregated. Section 12(2) A county government shall not impose or charge cess on dairy produce emanating from another county.

Section 13. Offences Section A person who operates in contravention to regulation 11 or fails to pay or remit cess under regulation 12(1) commits an offence is liable on conviction to fine not exceeding ten thousand shillings or a term of imprisonment of twelve months or to both such fine and imprisonment.

Section 14. Regulatory Permit Section 14(1) A person shall not operate a dairy business unless the person holds a Regulatory permit issued by the Board under these regulations. Section 14(2) An application for a regulatory permit shall be made to the Board in Form C in the Third Schedule and shall be accompanied by the fees specified in Form E in the Fifth Schedule. Section 14(3) A regulatory permit shall be in Form D in the Fourth Schedule. Section 14(4)(a) grant a new Regulatory permit; Section 14(4)(b) renew a Regulatory permit; or Section 14(4)(c) transfer an existing Regulatory permit. Section 14(5) A person who is dissatisfied with the decision of the Board, may, within 30 days of being notified of the decision, appeal to the office of the Cabinet Secretary. If dissatisfied, they shall pursue legal redress.

Section 15. Prior inspection of premises Section any person taking part in the storage, handling, distribution or sale of dairy produce on the premises in respect of which the application is made or to which an existing regulatory permit relates has a valid medical certificate;

Section 16. Regulatory permit to corporate bodies Section 16(1) Where the applicant for a regulatory permit is a corporate body, the license shall be issued in the name of the body corporate. Section 16(2) Any person who for the time being is a manager of the body corporate shall be subject to the duties and liabilities imposed upon the holder of the regulatory permit. Section 16(3) No transfer of the regulatory permit shall be necessary where a change occurs in the office of the manager, but any person for the time being holding that office shall be subject to the duties and liabilities imposed upon the holder of the regulatory permit.

Section 17. Duration of permit Section 17(1) A regulatory permit shall be valid for a period of twelve months from the date of issue. Section 17(2) A renewal of the permit under paragraph (1) shall be issued subject to regulation 15. Section 17(3) A holder of a regulatory permit shall apply for a renewal three months prior to the expiry of the regulatory permit.

Section 18. Types of regulatory permits Section Milk bar regulatory permit;

Section 19. Display of regulatory permit Section 19(1) A regulatory permit holder shall conspicuously display or cause to be displayed the regulatory permit in force on the premises to which it relates. Section 19(2) A regulatory permit holder who fails or neglects to so display the regulatory permit as provided under this regulation commits an offence and shall be liable on conviction to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding three months, or to both such fine and imprisonment.

Section 20. Responsibility of permit holder Section 20(1) Regulatory permit is not transferrable except as provided by clause 19(2) of this regulation. Section 20(2) A regulatory permit assignee or agent shall be subject and liable to the same duties, obligations and penalties under these regulations as if they were the regulatory permit holder: Section 20(3) An act done or omitted to be done by an employee in contravention of any of the provisions of these Regulations shall be deemed also to be the act or omission of the employer and any proceedings for an offence arising out of that act or omission may be taken against both employer and employee.

Section 21. Purporting to be a regulatory permit holder Section A person who causes or permits a display on his or her premises or on premises under his or her control, any words, letters or sign falsely purporting that he is a regulatory permit holder commits an offence and is liable upon conviction to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding one year as per the Dairy Industry Act, or both.

Section 22. Sales contrary to permit Section for a first offence, to a fine not exceeding five thousand shillings or to imprisonment for a term not exceeding twelve months, or to both; and

Section 23. Authentication of a regulatory permit Section 23(1)(a) has failed to give particulars of any conviction which he is required to give under these regulations; Section 23(1)(b) has conducted in an improper manner the obligations to which an existing regulatory permit relates; Section 23(1)(c) has failed to comply with any condition imposed under an existing regulatory permit. Section 23(1)(d) has in use dairy equipment, material or additive which does not meet the relevant standard; Section 23(1)(e) has failed to provide material facts stated in the application; Section 23(1)(f) is in default in the payment of any sum due to the Board or arising from any contractual arrangements with a producer or agent of a producer; Section 23(1)(g) is deregistered; Section 23(1)(h) has contravened a provision of these Regulations; Section 23(1)(i) has not fulfilled the requirement for grant of a regulatory permit; Section 23(1)(j) has not paid a primary producer for milk delivered. Section 23(2) A suspension of a regulatory permit shall not exceed 3 months.

Section 24. Powers of the Board Section 24(1) A holder of a regulatory permit shall be an agent of the Board for the purpose of collecting and remitting the consumer safety levy. Section 24(2) A dairy business operator shall remit a consumer safety levy on the dairy produce processed or imported at the rate of forty cents per kilogram of milk processed or one per centum of the cost of milk processed or imported, whichever is higher. Section 24(3) A person who is required under these regulations to pay or remit levy to the Board, shall do so on a monthly basis and in each case within a period of ten days after the last day of the month during which the milk or dairy produce in respect of which the levy is payable was processed provided that for imported dairy produce the consumer safety levy shall be payable prior to entry of the produce into the country.

Section 25. Recovery and Remittance of consumer safety levy Section pay a penalty of twenty-five percent interest for the first month or part of a month in which the levy remains unpaid; and

Section 26. Penalty and interest on unpaid levy Section The interest rates set out in this regulation are monthly interest rates.

Section 27. General Penalty Section A person who contravenes any of the provisions of these Regulations for which a penalty is not provided commits an offence and shall be liable on conviction to a fine not exceeding ten thousand shillings or imprisonment for a term not exceeding one year or both.

Section 28. Revocation of LN No. 111 of 2004 Sub Leg Section The Dairy Industry (Imposition of Cess and Levies) Regulations are hereby revoked.