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SPECIAL ISSUE

Kenya Gazette Supplement No. 200 (Acts No. 11)

REPUBLIC OF KENYA

KENYA GAZETTE SUPPLEMENT

ACTS, 2024

NAIROBI, 7th November, 2024

CONTENT

Act-
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The Sugar Act, 2024 .................................................................................... 215

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 215
THE SUGAR ACT, 2024
No. 11 of 2024
Date of Assent: 1st November, 2024
Date of Commencement: 21st November, 2024
ARRANGEMENT OF SECTIONS
Section
PART I—PRELIMINARY
1—Short title.
2—Interpretation.
PART II—ESTABLISHMENT, POWERS AND
FUNCTIONS OF THE KENYA SUGAR BOARD
3—Establishment and incorporation of the Board.
4—Functions of the Board.
5—Functions of county governments.
6—Composition of the Board.
7— Term of appointment.
8—Vacation of office.
9— Powers of the Board.
10—Conduct of business and affairs of the Board.
11—Committees of the Board.
12—Delegation of powers of the Board.
13—Remuneration of Board members.
14—Chief Executive Officer.
15—Staff of the Board.
16—Protection from personal liability.
17—Liability of the Board for damages.
PART III—LICENSING AND REGISTRATION
18—Registration of millers.
19—Registration of a grower to a factory.
20—Exemption from sugarcane catchment area.
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No. 11 Sugar 2024
21—Inter-miller agreements.
22—Requirements of licence to operate a mill.
23—Issuance of licence and licence fees.
24—Conditions of licence.
25—Sugar import.
26—Safeguard measures.
27—Industrial sugar.
28—Duties of millers and retailers.
PART IV—ESTABLISHMENT OF THE KENYA
SUGAR RESEARCH AND TRAINING INSTITUTE
29—Establishment of the Kenya Sugar Research and
Training Institute.
30—Functions of the Institute.
31—Management of the Institute.
32—Application.
33—Funds of the Institute.
34—Managing Director of the Institute.
PART V—APPOINTMENT OF SUAGR INDUSTRY
INSPECTORS
35—Appointment of crop inspectors.
36—Entry and inspection.
37—Powers of entry.
38—Obstruction of inspectors.
PART VI—FINANCIAL PROVISIONS
39—Funds of the Board.
40—Sugar Development Levy.
41—Sugar Development Fund.
42—Financial year.
43—Annual estimates.
44—Accounts and audit.
445—Annual report.
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2024 Sugar No. 11
PART VII— ESTABLISHMENT OF THE SUGAR
ARBITRATION TRIBUNAL
46—Establishment of the Sugar Arbitration Tribunal.
47—Jurisdiction of the Tribunal.
48—Determination of disputes.
49—Powers of the Tribunal.
50—Removal of members of the Tribunal.
51—Vacancy.
52—Secretary of the Tribunal.
53—Remuneration of members and staff of the Tribunal.

PART VIII—MISCELLANEOUS PROVISIONS

54—Annual general meeting.
55—Quality, safety and health control measures.
56—Inspection for quality and safety.
57—Offences and penalties.
58—Sugar industry agreements.
59—General penalty.
60—Sugarcane Pricing Committee.
PART IX —PROVISIONS ON DELEGATED
POWERS
61—Regulations.
PART X — CONSEQUENTIAL AMENDMETS
62—Amendment of First Schedule to No.13 of 2013.
63—Amendment of First Schedule to No. 16 of 2012.
PART IX—SAVINGS AND TRANSITIONAL
PROVISIONS
64—Transfer of staff.
65—Transfer of assets and liabilities.
66—Pending proceedings and claims.
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FIRST SCHEDULE — DELINEATION OF
SUGAR CATCHMENT
AREAS
SECOND SCHEDULE — PROVISIONS AS TO THE
CONDUCT OF BUSINESS
AND AFFAIRS OF THE
BOARD
THIRD SCHEDULE — PROVISIONS AS TO THE
MEETINGS AND
PROCEDURE OF THE
TRIBUNAL
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2024 Sugar No. 11
THE SUGAR ACT, 2024
AN ACT of Parliament to provide for the development,
regulation and promotion of the sugar industry, to
provide for the establishment, powers and
functions of the Kenya Sugar Board, and for
connected purposes
ENACTED by Parliament of the Republic of Kenya
as follows—
PART I—PRELIMINARY
1. This Act may be cited as the Sugar Act, 2024. Short title.

2. In this Act, unless the context otherwise Interpretation.

requires—
“agreements” means agreements specifying the
standard provisions governing the rights and obligations of
growers, millers, out-growers, transporters and other value
chain actors in the sugar industry;
“Board” means the Kenya Sugar Board established
under section 3;
“by-product” means any substance, other than sugar,
produced incidentally during the process of manufacturing
sugar;
“Cabinet Secretary” means the Cabinet Secretary for
the time being responsible for matters relating to
agriculture;
“cane management” includes the research, land
preparation, contracting, agronomy, harvesting,
transportation and delivery of cane;
“County Executive Committee Member” means the
County Executive Member for the time being responsible
for matters relating to agriculture in the respective County;
“Fund” means the Sugar Development Fund
established under section 41;
“guidelines” means the guidelines for agreements
between parties in the sugar industry set out in the
regulations;
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No. 11 Sugar 2024
“grower” means a person who produces sugar-cane or
any crop in Kenya for the manufacture of sugar;
“industry” means the sugar industry in Kenya and
includes the growing of sugar-cane and any other sugar
producing crop, the manufacturing, refining, warehousing,
marketing, transportation of sugar and disposal of sugar
and its by-products;
“industrial sugar” means a white crystalline
carbohydrate used as a sweetener and preservative sugar,
which complies with the specifications set by the body for
the time being responsible for setting standards;
“Institute” means the Kenya Sugar Research and
Training Institute established under section 29;
“Jaggery mill” means bare minimum technology
equipment used to crush sugarcane to produce sugarcane
juice which is processed through boiling to produce
jaggery;
“licence” means a licence issued by the Board to a
miller;
“member” means a member of the Board appointed
under section 6;
“mill gate” means a site designed as such by the Board
where sugar crops are received, weighed or tested;
“miller” means a person licensed to operate a sugar
mill or a jaggery, mill in Kenya for the production of sugar
including refined sugar and other by-products;
“outgrower” means a person who has a sugarcane
farm in a catchment area and who has in force a cane
supply contract in respect of the sugar-cane grown on such
farm and registered by the Board;
“refined sugar” means sugar, which complies with the
specifications set by the body for the time responsible for
setting standards;
“retailer” means any person licensed to carry out retail
business in Kenya and includes a supermarket,
departmental store, retail shop, wholesale shop, distribution
agency or a hawker;
“stakeholder” means a person with significant interest
in the sugar industry and includes growers, out-growers,
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2024 Sugar No. 11
millers, transporters and other value chain actors in the
industry;
“sugar” means crystalline or liquid sucrose derived
from sugar crop in any of its recognized commercial forms,
intended for human consumption or other use and includes
jaggery, raw, brown, plantation (mill) white and industrial
sugar;
“sugar beet’ means any plant or part of a plant of the
genus Beta or any of its hybrid that is grown for sugar
production;
“sugarcane” means any plant or part of a plant of the
genus saccharum or any of its hybrid;
“sugar catchment area” means a geographical area
where sugarcane farmers are clustered for purposes of
election and cane management;
“sugarcane growers apex body” mean a national
organization registered under the Societies Act whose Cap. 108.
membership shall comprise of mill level registered and
contracted farmers’ institutions and groups championing
the rights under a cane supply agreement and in the
catchment areas listed under the First Schedule and
gazetted as such by the Cabinet Secretary for the time being
responsible for Agriculture;
“sugar crop” means a crop grown for the purpose of
sugar production including sugarcane and sugar beet;
“sugarcane manufacturer’s apex body” means a
national body, composed of sugar and jaggery millers
registered under the Societies Act, with the main objective Cap. 108.
being to lobby for the interest of the registered millers;
“Tribunal” means the Sugar Arbitration Tribunal
established under section 46.
PART II—ESTABLISHMENT, POWERS AND
FUNCTIONS OF THE KENYA SUGAR BOARD
3. (1) There is established a board to be known as the Establishment and
incorporation of
Kenya Sugar Board. the Board.

(2) The Board shall be a body corporate with perpetual

succession and a common seal and shall, in its corporate
name, be capable of—
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(a) suing and being sued;
(b) taking, purchasing or otherwise acquiring, holding,
charging or disposing of movable and immovable
property;
(c) borrowing or lending money; and
(d) doing or performing all such other acts necessary
for the proper performance of its functions under
this Act which may lawfully be done or performed
by a body corporate.
4. (1) The Board shall— Functions of the
Board.

(a) regulate, develop and promote the sugar industry;

(b) co-ordinate the activities of value chain actors
within the industry; and
(c) facilitate equitable access to the benefits and
resources of the industry by all interested parties.
(2) Without prejudice to the generality of subsection
(1), the Board shall—
(a) participate in the formulation and implementation
of overall policies, plans and programs of work for
the development of the industry;
(b) act as an intermediary between the industry and
the Government;
(c) establish linkages with other government agencies
and research institutions to enhance quality
assurance and research and facilitate flow of
research findings to the interested parties;
(d) monitor and regulate the domestic market with a
view to identify any distortion in the sugar market
and advise the Government and interested parties
on any corrective measures to be taken;
(e) advise the national and county governments on
agricultural levies for purposes of planning,
enhancing harmony and promotion of equity in the
sugar industry;
(f) facilitate the sale, import and export of sugar and
sugar products;
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2024 Sugar No. 11
(g) promote and encourage the use of environmentally
friendly technologies in the industry;
(h) provide advisory services to growers, out-grower
institutions and millers;
(i) in collaboration with county governments,
implement an equitable mechanism for the pricing
of sugar crop and appropriation of proceeds from
the disposal of the by-products of sugar production
between millers and growers as stipulated in the
guidelines;
(j) collaborate with national and international trade
bodies on sugar related matters;
(k) oversee the formulation of standard provisions
governing the mutual rights and obligations of
growers, millers and other interested parties;
(l) collect, collate and analyze industry statistics and
maintain a data base for the industry;
(m) register and license sugar and jaggery mills,
exporters, importers and dealers;
(n) enforce and monitor compliance with standards
along the sugar value chain;
(o) promote and advise on strategies for value addition
and product diversification in the sugar industry;
(p) in consultation with the county governments and
other stakeholders, formulate a strategic plan for
the sugar sub-sector at least once every five years;
(q) in consultation with the county governments,
formulate guidelines on an efficient, safe and
economical transportation of sugar, sugar crop and
disposal of unutilized by-products;
(r) gather and disseminate market information on
regional and global supply chain dynamics for the
benefit of stakeholders;
(s) establish linkages with various government
agencies and research institutions to enhance
quality assurance and research;
(t) ensure that there is adequate public participation
and consultation with growers in its decision
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No. 11 Sugar 2024
making affecting the sugar industry and its
stakeholders;
(u) promote the efficiency and development of the
industry through the establishment of appropriate
institutional linkages; and
(v) perform such other functions as may be conferred
on it by this Act or any other written law.
5. The County Government shall— Functions of
county
governments.

(a) issue certificates and inspect sugar crop nurseries

in collaboration with the Kenya Sugar Research
and Training Institute;
(b) offer and coordinate extension services on sugar
crop production in the respective county;
(c) in collaboration with the Board and law
enforcement agencies, enforce regulations within
the county;
(d) monitor and report incidences of pests and disease
outbreaks and take appropriate action in
collaboration with the Board and other relevant
government agencies; and
(e) maintain an efficient road network for the
movement of sugarcane, delivery of other services
and general development of the sugar industry.
6. (1) The Board shall comprise— Composition of
the Board.

(a) a non-executive chairperson appointed by the

President;
(b) five representatives elected by growers from each
sugar catchment area as per the First Schedule;
(c) two representatives each elected by private and
public owned sugar mills who are knowledgeable
in sugar technology and value addition;
(d) the Principal Secretary in the Ministry for the time
being responsible for matters relating to
agriculture or a representative nominated by the
Principal Secretary in writing;
(e) one person nominated by the Council of County
Governors who is knowledgeable in extension
services and management of farmer institutions;
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2024 Sugar No. 11
(f) the Principal Secretary for the time being
responsible for National Treasury or a
representative nominated by the Principal
Secretary in writing; and
(g) the Chief Executive of the Board appointed under
section 14 who shall be an ex-officio member and
the secretary to the Board.
(2) The members under subsection (1) (b), (c) and (e)
shall be appointed by the Cabinet Secretary by notice in the
Gazette.
(3) The appointing authority shall ensure, in so far as
it is practical, that—
(a) not more than two thirds of the nominees are of
the same gender, and that youth and persons with
disabilities are represented in the composition of
the Board; and
(b) the election of members under subsection (1)(b)
shall be on rotational basis based on the counties
within the catchment area.
(4) A person shall not be appointed as a chairperson of
the Board of Directors unless the person holds at least a
degree or its equivalent in any discipline from an institution
recognized in Kenya and has fifteen years relevant
experience in the sugar sector.
7. (1) A person appointed as chairperson or a Term of
appointment.
member of the Board under section 6(1) (a), (b), (c) and (e)
shall serve for a term of three years renewable for one
further term upon election or nomination as the case may
be.
(2) Members of the Board under section 6(1)(a), (b),
(c) and (e) shall be appointed at different times so that their
respective expiry of terms of office shall fall at different
times.
8. A person shall cease to be a member of the Board Vacation of
office.
if the person—
(a) is absent from three consecutive meetings of the
Board without notifying the chairperson in writing;
(b) becomes an officer, agent or member of staff of
the Board;
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(c) resigns in writing addressed to the Cabinet
Secretary;
(d) is convicted of a criminal offence and sentenced to
a term of imprisonment exceeding six months
without the option of a fine;
(e) is declared bankrupt;
(f) is unable to perform the functions of his or her
office by reason of mental or physical infirmity; or
(g) dies.
9. The Board shall have all the powers necessary for Powers of the
Board.
the proper performance of its functions under this Act,
including the power to—
(a) impose a levy or levies upon growers and millers
for the purposes of giving effect to the provisions
of this Act;
(b) control, supervise and administer the assets of the
Board in such manner and for such purpose as best
promotes the purpose for which the Board was
established;
(c) receive any grants, gifts, donations or endowments
and make legitimate disbursements therefrom;
(d) determine the provisions to be made for capital
and recurrent expenditure and for the reserves of
the Board;
(e) lay down policy guidelines for the operations and
management of all the funds collected by the
Board;
(f) access all such relevant information as may be
necessary for the efficient administration of the
industry;
(g) enter into association with other bodies or
organizations within or outside Kenya as the
Board may consider desirable or appropriate and
in furtherance of the purpose for which the Board
is established; and
(h) open a banking account or banking accounts for
the funds of the Board.
10. (1) The conduct and regulation of the business and Conduct of
business and
affairs of the Board shall be as provided in the Second affairs of the
Schedule. Board.
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2024 Sugar No. 11
(2) Except as provided in the Second Schedule, the
Board shall regulate its own procedure and the procedure of
any of its committees.
11. (1) The Board may establish such committees as it Committees of the
Board.
may consider necessary for the efficient performance of its
functions and the exercise of its powers under this Act.
(2) The Board may co-opt to sit in the committees
established under subsection (1), such other persons whose
knowledge and skills are necessary for the performance of
the functions of the Board.
12. The Board may, either generally or in any Delegation of
powers of the
particular case, delegate to any committee of the Board or Board.
to any member, officer, employee or agent of the Board,
the exercise of any of the powers or the performance of any
of the functions or duties of the Board under this Act.
13. The Board shall pay to its members, such fees or Remuneration of
Board members.
allowances for expenses as determined by the Cabinet
Secretary on the advice of the Salaries and Remuneration
Commission.
14. (1) There shall be a Chief Executive Officer of the Chief Executive
Officer.
Board who shall be appointed through a competitive
process by the Board and whose terms and conditions of
service shall be determined by the Board in the instrument
of appointment or otherwise in writing from time to time.
(2) A person shall be qualified for appointment under
this section if the person—
(a) holds a relevant degree from a university
recognized in Kenya;
(b) has at least ten years knowledge and experience
from a relevant field;
(c) has at least five years’ experience in a position of
senior management; and
(d) meets the provision of Chapter Six of the
Constitution.
(3) The Chief Executive Officer shall be an ex-officio
member of the Board but shall have no right to vote at any
meeting of the Board.
(4) The Chief Executive Officer shall, subject to the
directions of the Board, be responsible for the day to day
management of the affairs of the Board.
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No. 11 Sugar 2024
15. The Board may appoint such officers and other Staff of the Board.

staff as are necessary for the proper discharge of its

functions under this Act, upon such terms and conditions of
service as the Board may determine.
16. A member, officer, employee or agent of the Protection from
personal liability.
Board shall not be held personally liable to any action,
claim or demand for a matter or thing done bona fide for
the purpose of executing the functions, powers or duties of
the Board.
17. Section 16 shall not relieve the Board of the Liability of the
Board for
liability to pay compensation to any person for any injury damages.
to him, his property or to any of his interests caused by the
exercise of any power conferred by this Act or by the
failure, whether wholly or partially, of any works.
PART III — LICENSING AND REGISTRATION
18. (1) A person shall not conduct the business of a Registration of
millers.
miller unless he or she is registered by the Board and the
premises in which the business is conducted is specified in
the register in accordance with regulations made under this
Act.
(2) The Board shall issue to each miller registered
under this section, a certificate of registration specifying
the premises at which milling may be carried on by the
miller.
(3) No fee shall be charged in respect of registration or
certification of registration made or issued under this
section.
(4) In issuing certificates of registration under sub-
section (3), the Board shall satisfy itself that the premises
upon which milling may be carried out meets the
environmental standards set by the National Environmental
Management Authority and the miller has been issued with
a certificate of safety by the relevant county government.
(5) A miller may offer extension or other services to
growers.
(6) Every miller registered under this section shall
conduct business in accordance with this Act and any
regulations made thereunder.
(7) A person who contravenes the provisions of this
section commits an offence and shall upon conviction be
liable to imprisonment for a term not exceeding five years
or to a fine not exceeding ten million shillings or to both.
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2024 Sugar No. 11
19. (1) A miller shall not purchase sugar crop from, or Registration of a
grower to a
accept, sugar crop delivered by a grower and a grower shall factory.
not sell or deliver sugar crop to a miller, unless the —
(a) grower is registered with, and has in force a valid
supply agreement with the miller;
(b) factory of the miller is situated within the grower’s
sugarcane catchment area; or
(c) grower is exempted from the requirements by
section 20.
(2) No miller shall, refuse to accept or collect sugar
crop for the manufacture of sugar delivered by a grower in
accordance with a cane supply agreement.
(3) A miller or a grower who contravenes the
provisions of this section commits an offence and shall be
liable, on conviction, to a fine not less than one million
shillings or three times the market value of sugar in respect
of which the offence is committed, whichever is greater, or
to imprisonment for a term not less than one year, or to
both such fine and imprisonment.
20. (1) A grower may deliver cane outside a sugarcane Exemption from
sugarcane
catchment area provided that, the grower — catchment area.

(a) has no supply agreement with a miller within the

sugarcane catchment area that they are situated in;

(b) is not indebted to a miller or an outgrower

institution within the sugarcane catchment area; or

(c) has a pre-existing agreement with a miller situated

outside the sugarcane catchment area.
(2) The grower who intends to exercise the exemption
under this section shall notify the Board of their intention to
supply cane outside a sugarcane catchment area
(3) The Cabinet Secretary shall prescribe regulations
for the notification process under subsection. (2).
21. A miller may enter into a contract of cane supply Inter-miller
agreements.
with another miller if―

(a) the factory of the miller is temporarily broken

down;
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No. 11 Sugar 2024

(b) there is an oversupply of cane to the miller; or

(c) the mill is located within the same sugarcane

catchment area.
22. (1) A person shall not operate a sugar mill or a Requirement of a
licence to operate
jaggery mill unless he or she is a holder of a current licence mill.
issued by the Board upon recommendation by the relevant
County Government for that purpose.
(2) A person who contravenes the provisions of
subsection (1) or acts in contravention of the conditions of
a licence granted under this Act commits an offence and
shall be liable on conviction, to a fine not exceeding three
times the domestic value of the sugar in respect of which
the offence is committed, or to a fine not exceeding ten
million shillings, whichever is the higher, or to
imprisonment for a term not exceeding five years, or to
both.
23. (1) A person shall apply to the Board for a licence Issue of licence
and licence fees.
to operate a sugar mill or a jaggery mill in the prescribed
form.
(2) The Board shall not issue a licence under this Act
unless—
(a) it is of the opinion that the applicant is a fit and
proper person to hold such a licence; and
(b) it is satisfied that the applicant has sufficient
knowledge, experience and capacity to enable him
conduct business or that he has, amongst his staff,
a person with such knowledge and experience.
(3) Every licence shall specify the premises upon
which the milling of sugar may be carried on.
(4) There shall be payable for the issue of a licence,
such fees as the Board, after consultation with the Cabinet
Secretary, may prescribe.
(5) The issuance of a licence to an applicant under this
section shall not be withheld without reasonable cause.
24. (1) A license issued under this Act shall be subject Conditions of a
licence.
to such conditions as the Board may determine and as
prescribed in regulations.
(2) Every license shall, unless earlier revoked, expire
on the 30th June next following the date of issue.
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2024 Sugar No. 11
25. (1) A person shall not import or export sugar crop, Sugar import.

sugar or sugar by-products without a valid licence issued

by the Board in accordance with regulations made under
this Act.
(2) A holder of a valid import or export licence shall
not import or export sugar crop, sugar or sugar by-products
unless they have obtained a pre-import permit or pre-export
approval from the Board in accordance with regulations
made under this Act.
(3) A person who imports sugar into Kenya shall, prior
to importation—
(a) provide evidence that the sugar they intend to
import is not available in the local market;
(b) provide a sample of the sugar to be imported and
pre-import verification certificate from the country
of origin; and
(c) obtain pre-import approval from the Board.
(4) A person who contravenes this section commits an
offence and shall, on conviction, be liable to imprisonment
for a term not exceeding five years or to a fine not
exceeding ten million shillings or to both.
(5) This section shall apply to importation of sugar-
cane.
26. (1) The Board shall ensure, subject to such Safeguard
measures.
regional and international trade agreements to which Kenya
is a party, that all sugar imports into the country are subject
to all the prevailing import duties, taxes and other tariffs.
(2) Despite sub-section (1), the Board shall ensure
that—
(a) sugar shall be imported in the country only when
there is sugar deficit and for a specific tonnage;
and
(b) importers report to the Board on their imports,
sales and stock as may be determined by the
Board.
(3) The government shall introduce other safeguard
measures as may be necessary to protect the industry from
unfair trade practices.
(4) A person who contravenes the provision of this
section commits an offence and shall be liable, on
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No. 11 Sugar 2024
conviction, to a fine not exceeding three times the value of
the domestic sugar in respect of which the offence is
committed, or two million shillings, whichever is higher, or
to imprisonment to a term not exceeding ten years, or to
both.
27. (1) A licenced sugar miller shall be licenced by the Industrial sugar.

Board to carry out the business of processing industrial

sugar.
(2) The Board shall regulate the processing of
industrial sugar.
28. (1) Every miller shall supply sugar and other sugar Duties of
millers and
products to the domestic market in a package that satisfies retailers.
the trade principle of traceability.
(2) Every retailer shall sell sugar products in a
package that satisfies the trade principle of traceability.
(3) The Cabinet Secretary shall within six months of
the enactment of this Act, make regulations for the better
implementation of the provisions of this section.
(4) Any person who contravenes the provisions of this
section commits and offence and shall, upon conviction, be
liable to imprisonment for a term not exceeding two years
or a fine not exceeding one million shillings or both.
PART IV— ESTABLISHMENT OF THE KENYA
SUGAR RESEARCH AND TRAINING INSTITUTE
29. (1) There is hereby established a body to be Establishment
of the Kenya
known as the Kenya Sugar Research and Training Institute. Sugar Research
and Training
Institute.

(2) The Institute is a body corporate with perpetual

succession and a common seal and shall, in its corporate
name, be capable of—
(a) suing and being sued;
(b) taking, purchasing or otherwise acquiring, holding,
charging and disposing of movable and immovable
property;
(c) borrowing and lending money;
(d) entering into contracts; and
(e) doing or performing all other things or acts
necessary for the proper performance of its
functions under this Act, which may lawfully be
done or performed by a body corporate.
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2024 Sugar No. 11
30. (1) The Institute shall— Functions of the
Institute.

(a) promote, co-ordinate and regulate research in

sugar, sugar crop, sugar by-products, sugar
technologies and management practices.
(b) expedite equitable access to research information,
resources, sugar technologies and innovations and
promote the application of research findings in the
development of the sugar industry.
(2) For the purpose of carrying out its functions, the
Institute shall—
(a) formulate policy and make policy
recommendations in respect of sugar research,
development and training to the Board in line with
the national policy on sugar;
(b) determine and advise the Board on the resource
requirements for sugar research in Kenya both at
the national and county level;
(c) regulate, monitor and ensure that all sugar research
undertaken by other institutions or persons
undertaking sugar research is consistent with the
national priorities specified in the relevant policy
documents;
(d) formulate or approve medium and long term
research plans, strategies and budgets of the
Institute;
(e) provide grants to institutions or persons desirous
of carrying out research and training programs
which are consistent with the national research
priorities and plans of the Institute;
(f) support and promote the training and capacity
building in relation to sugar industry research;
(g) liaise with and ensure the co-ordination of
institutions, agencies and persons involved in
sugar research;
(h) establish platforms for the purposes of sharing
research information, advancing research and
transfer of technology and dissemination of
information relating to advancements made in
sugar industry research;
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(i) conduct training in industry best practice and
value-addition;
(j) ensure continuance of performance improvement
in the field of sugar industry research;
(k) breed and promote sugarcane varieties suited for
various agro-ecological areas of Kenya;
(l) conduct research on nutritional requirements of
sugar crop in order to provide recommendations
on the appropriate inputs;
(m) appraise technologies on land preparation,
drainage and water management for economical
cane sugar crop production;
(n) study and monitor pests and diseases that affect
sugar crop and recommend appropriate control
strategies;
(o) develop agronomic packages for sugar crop
maintenance and management;
(p) institute socio-economic investigations to improve
human resource management and enhance
development of the sugar industry as an
agribusiness;
(q) test, design and evaluate farm machinery transport
and factory equipment for efficient sugar
production;
(r) promote transfer of sugar industry technology
based on applied research through relevant training
and extension mechanism;
(s) foster research on sustainable productivity,
environmental issues, human safety at field and
factory levels;
(t) collaborate with the Government, the industry,
universities and other national and international
organizations for the purpose of furthering the
Institute's mission;
(u) charge fees or levies for rendered services and
products;
(v) offer modular courses on various aspects of sugar
industry technologies, innovations and
management practices.
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(w) perform such other function as may be conferred
on it by this Act or any other written law.
31. (1) The Management of the Institute shall vest in Management of
the Institute.
the Board of Directors which shall consist of—
(a) a chairperson appointed by the Cabinet Secretary
through a competitive process in consultation with
the Public Service Commission;
(b) one person nominated by sugarcane growers’ apex
body;
(c) one person nominated by sugarcane manufacturers
apex body;
(d) one person with knowledge of and experience in
the operation of the sugar industry nominated by
the Council of Governors;
(e) one person with knowledge and experience in
agricultural research in sugar technology
nominated by the Cabinet Secretary;
(f) the Principal Secretary for the time being
responsible for National Treasury or a
representative appointed in writing;
(g) the Principal Secretary for the time being
responsible for Agriculture or a representative
appointed in writing;
(h) the Director General of the Kenya Agricultural
Livestock and Research Organization; and
(i) the Managing Director who shall be an ex-officio
member.
(2) The Cabinet Secretary shall appoint the members
under subsection (1) (a), (b), (c), (d) and (e) by notice in the
Gazette.
(3) A person shall not be appointed as a chairperson of
the Board of Directors of the Institute unless the person
holds at least a degree or its equivalent in agricultural
research or a related field from an institution recognised in
Kenya and has at least ten years’ experience in the sugar
industry.
32. The provisions of sections 8, 9, 10, 11 and 12 shall Application.

apply to the Board of the Institute with necessary

modification.
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33. The funds of the Institute shall consist of― Funds of the
Institute.
(a) monies remitted by the Board from the sugar
development levy;
(b) such monies as may accrue to or vest in the Board
in the course of the exercise of its functions under
this Act;
(c) monies from any other source as approved by the
Board of Directors and Ministry responsible; and
(d) levies and fees accruing from rendered services
and products.
34. (1) There shall be a Managing Director of the Managing
Director of the
Institute who shall be appointed through a competitive Institute.
process by the Board of the Institute and whose terms and
conditions of service shall be determined by the Board in
consultation with the Public Service Commission in the
instrument of appointment or otherwise in writing from
time to time.
(2) A person shall be qualified for appointment under
this section if the person-
(a) holds a doctorate degree in agricultural studies,
agronomy plant genetics and breeding, soil science
or a related field from a university recognized in
Kenya;
(b) has at least ten years knowledge and experience
from a relevant field;
(c) has at least five years’ experience in a position of
senior management; and
(d) meets the provisions of Chapter Six of the
Constitution.
PART V— APPOINTMENT OF SUGAR
INDUSTRY INSPECTORS
35. (1) The Board shall appoint qualified sugar Appointment of
crop inspectors.
industry inspectors for purposes of undertaking its
functions under this Act or any other written law.
(2) Notwithstanding any other provision of this Act or
any other written law, the sugar industry inspector shall
comprise of—
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2024 Sugar No. 11
(a) a crop inspector;
(b) a factory inspector;
(c) a warehouse and transportation inspector; and
(d) any other inspector that the Board may consider
necessary.
(3) A person shall not be appointed as a sugar industry
inspector unless such person holds an academic or
professional qualification prescribed by the Board.
(4) The Board shall maintain a register of persons
qualified to be appointed as sugar industry inspectors.
(5) A person shall not be appointed as a sugar industry
inspector unless such person is registered by the Board.
(6) The Board may appoint any other government
agency as a sugar industry inspector for purposes of this
Act.
(7) The Cabinet Secretary shall make Regulations for
the better implementation of the provisions of this section.
36. An inspector or a person duly authorized in writing Entry and
inspection.
in that behalf by the Board may, at all reasonable times and
upon production of such authority to any person so
requesting—
(a) enter any land or buildings occupied by the holder
of a licence issued under this Act, or a person
registered under this Act;
(b) make such inspection and enquiries as the person
may deem necessary for ascertaining whether the
provisions of this Act or the terms and conditions
of the respective licence are being complied with;
and
(c) may require any person found thereon to give such
information as the person may require.
37. (1) For the purposes of this Act, an inspector who Powers of entry.

has reasonable grounds may—

(a) at any reasonable time, enter upon any land,
premises or vehicle;
(b) take such persons and things as the inspector
considers necessary;
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No. 11 Sugar 2024
(c) perform the functions or exercise the powers
conferred by this Act or any other written law;
(d) make enquiries or carry out a search to ascertain if
this Act is being complied with;
(e) demand the production by a licence holder of the
licence for examination;
(f) seize and remove any article or thing in respect of
which the inspector has reasonable grounds for
believing that an offence under this Act is being or
has been committed; or
(g) do any other thing authorized under this Act.
(2) The owner or occupier of any land or a person in
control of any premise or a vehicle which an inspector has
entered under subsection (1) shall render such reasonable
assistance as may be required by the inspector.
(3) A person who refuses, unreasonably delays or fails
to comply with a requirement under subsection (2) commits
an offence.
38. (1) A person shall not prevent, hinder or obstruct Obstruction of
inspectors.
an inspector in performance of the functions, and duties or
exercise of powers conferred by this Act.
(2) A person who contravenes subsection (1) commits
an offence and shall be liable, on conviction, to a fine not
exceeding one million shillings, or to imprisonment for a
term not exceeding two years, or both.
PART VI—FINANCIAL PROVISIONS
39. The funds of the Board shall comprise— Funds of the
Board.

(a) such monies as may be appropriated by the

National Assembly for the purposes of the Board;
(b) such monies as may accrue to or vest in the Board
in the course of the exercise of its powers or the
performance of its functions under this Act;
(c) all monies from any other source provided for or
donated or lent to the Board; and
(d) the Sugar Development Levy.
40. (1) The Cabinet Secretary shall in consultation Sugar
Development
with the Board, by order in the gazette, impose a levy on Levy.
domestic sugar not exceeding four per centum of the value
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2024 Sugar No. 11
and a four per centum of CIF value on imported sugar to be
known as the Sugar Development Levy.
(2) The levy shall be payable at such rate as may be
specified in the order.
(3) An order under this section may contain provisions
as to the time at which any amount payable by way of the
levy shall become due.
(4) All moneys received in respect of the levy shall be
paid to the Board and if not paid on or before the date
prescribed by the order, the amount due and any sum
payable under subsection (5) shall be a civil debt
recoverable summarily by the Board.
(5) If a person fails to pay any amount payable by him
or her by way of the levy on or before the date prescribed
by the order, a sum equal to three per centum of the amount
shall be added to the amount due for each month or part
thereof during which the amount due remains unpaid.
(6) The Sugar Development Levy collected under
subsection (2) shall be appropriated as follows—
(a) fifteen per centum shall be applied for factory
development and rehabilitation;
(b) fifteen per centum shall be applied for research
and training allocated to the Kenya Sugar
Research and Training Institute;
(c) forty per centum shall be applied for cane
development and productivity enhancement;
(d) fifteen per centum shall be allocated to sugarcane
producing regions on pro-rata basis based on
production capacity for infrastructural
development and maintenance and shall be
managed by the Board;
(e) ten per centum shall be applied for the
administration of the Board; and
(f) five per centum shall be applied for the furtherance
and exercise of the functions of sugarcane farmers
organisations.
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41. (1) There is established a Fund to be known as the Sugar
Development
Sugar Development Fund which shall be administered by Fund.
the Board.
(2) The Fund shall consist of—
(a) the Sugar Development levy;
(b) any funds provided by bilateral or multilateral
donors for the purposes of the Fund;
(c) any moneys provided by the National Assembly
for the purposes of the Fund;
(d) any moneys provided by a county assembly for the
purposes of the Fund; and
(e) moneys from any other source approved by the
Board.
42. The financial year of the Board shall be the period Financial year.

of twelve months ending on the thirtieth of June in every

year.
43. (1) Before the commencement of each financial Annual estimates.

year, the Board shall cause to be prepared estimates of

revenue and expenditure of the Board for that financial
year.
(2) The annual estimates shall make provision for all
the estimated expenditure of the Board for the financial
year concerned and in particular, shall provide for—
(a) the payment of salaries, allowances and other
charges in respect of the staff of the Board;
(b) the payment of pensions, gratuities and other
charges in respect of retirement benefits which are
payable out of the funds of the Board;
(c) the proper maintenance of the buildings and
grounds of the Board;
(d) the acquisition, maintenance, repair and
replacement of the equipment and other movable
property of the Board; and
(e) the creation of such reserve funds to meet future or
contingent liabilities in respect of retirement
benefits, insurance or replacement of buildings or
equipment, or in respect of such other matters as
the Board may deem appropriate.
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(3) The annual estimates shall be approved by the
Board before the commencement of the financial year to
which they relate and once approved, the sum provided in
the estimates shall not be increased without the prior
consent of the Board.
44. (1) The Board shall cause to be kept all proper Accounts and
audit.
books and records of accounts of the income, expenditure,
assets and liabilities of the Board.
(2) Within a period of three months from the end of
the financial year, the Board shall submit to the Auditor-
General or to an auditor appointed under subsection (3), the
accounts of the Board together with—
(a) a statement of the income and expenditure of the
Board during that year; and
(b) a statement of the assets and liabilities of the
Board on the last day of that year.
(3) The accounts of the Board shall be audited by the
Auditor-General or by an auditor appointed by the Board
with the written approval of the Auditor General.
(4) The appointment of an auditor under subsection (3)
shall not be terminated by the Board without the prior
written consent of the Auditor-General.
(5) The Auditor-General may give general or specific
directions to an auditor appointed under subsection (3) and
the auditor shall comply with such directions.
(6) An auditor appointed under subsection (3) shall
report directly to the Auditor-General on any matter
relating to the directions given under subsection (5).
(7) Within a period of six months after the end of each
financial year, the Auditor-General shall report on the
examination and audit of the accounts of the Board to the
Cabinet Secretary and where an auditor has been appointed
under subsection (3), such auditor shall transmit a copy of
the report to the Auditor General.
(8) The fee payable to an auditor, appointed under
subsection (3) shall be determined and paid by the Board.
(9) Nothing in this Act shall be construed to prohibit
the Auditor General from carrying out an inspection of the
records and accounts of the Board whenever it appears to
him desirable.
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No. 11 Sugar 2024
(10) Notwithstanding anything in this Act, the
Auditor-General may transmit to the Cabinet Secretary a
special report on any matters incidental to his power under
this Act and section 50(1) of the Public Audit Act (No.34
of 2015) shall, with necessary modifications, apply to any
report made under this section.
45. (1) The Board shall, within three months after the Annual report.

end of each financial year, prepare and submit to the

Cabinet Secretary a report of the operations of the Board
for the immediate preceding year.
(2) The Cabinet Secretary shall lay the report
submitted to him under subsection (1) before the National
Assembly and Senate within three months of the day the
National Assembly and the Senate next sits after the receipt
of the report.
PART VII— ESTABLISHMENT OF THE SUGAR
ARBITRATION TRIBUNAL
46. (1) There is hereby established a Tribunal to be Establishment of
the Sugar
known as the Sugar Arbitration Tribunal. Arbitration
Tribunal.

(2) The Tribunal shall consist of—

(a) a chairperson appointed by the Chief Justice who
shall be a person qualified to be appointed as a
judge of the High Court; and
(b) four other members, being persons with expert
knowledge in economics, trade, law, agriculture,
research and engineering with at least five years’
experience in arbitration, all of who shall be
appointed by the Chief Justice through a
competitive recruitment process.
(3) The Chairperson and members of the Tribunal
shall serve on a part-time basis.
(4) The members of the Tribunal appointed under
subsection (2) shall hold office for such period, not
exceeding three years, on such terms and conditions as
shall be specified in the instrument of appointment but shall
be eligible for re- appointment for one further term of a
period not exceeding three years.
(5) A person shall not be qualified to be appointed as a
member of the Tribunal if that person is a public servant or
takes an active part in the activities of a political party.
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(6) A person shall not qualify for appointment under
this section unless the person has met the requirement of
Chapter Six of the Constitution.
(7) The provisions set out in the Third Schedule shall
have effect with respect to the meetings and procedure of
the Tribunal.
(8) Except as provided in the Third Schedule, the
Tribunal shall regulate its own procedure as to the conduct
of meetings.
47. (1) The Tribunal shall determine— Jurisdiction of the
Tribunal.

(a) disputes between sugar crop farmers;

(b) disputes between sugar crop farmers and the
following-
(i) out grower institutions;
(ii) millers;
(iii) other interested parties;
(c) disputes relating to cane pricing;
(d) disputes relating to contract farming;
(e) disputes between millers; and
(f) disputes between any other interested parties.
48. (1) The Tribunal shall expeditiously determine any Determination of
disputes.
dispute before, but in any case, shall determine a dispute
within a period of three months from the date the dispute is
lodged.
(2) An Appeal shall lie from the decision of the
Tribunal to the High Court within thirty days on points of
law and facts and on points of law to the Court of Appeal.
(3) A decision of the Tribunal shall be enforced in the
same manner as a decision of a Magistrates Court.
(4) The Tribunal shall apply the rules of evidence and
procedure under the Evidence Act (Cap. 80) and the Civil
Procedure Act (Cap. 21), with the necessary modifications,
while ensuring that its proceedings do not give undue
regard to procedural technicalities.
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49. The Tribunal shall have the powers of the High Powers of the
Tribunal.
Court—
(a) to administer oaths to the parties and witnesses to
the proceedings;
(b) to summon witnesses and to require the production
of documents;
(c) to order the payment of costs; and
(d) to order that the provisions of the law relating to
Commissions of Inquiry in Kenya with respect
to—
(i) the protection of the members of the Tribunal
from suit;
(ii) the form of summonses to witnesses;
(iii) to giving or fabricating of false evidence;
(iv) the duty and indemnity of witnesses, and the
penalty for contumacy, insult or interruption
of proceedings; and
(v) the appearance of advocates;
shall with any necessary adaptations or modifications,
apply to the members of, the witnesses before, and the
proceedings before, the Tribunal in like manner as they
apply to Commissions of Inquiry.
50. A member of the Tribunal may be removed if the Removal of
members of the
member— Tribunal.

(a) becomes an undischarged bankrupt;

(b) is convicted of a criminal offence and sentenced to
imprisonment for a period exceeding six months
without the option of a fine;
(c) is incapacitated by reason of prolonged physical or
mental illness from performing the duties of the
office;
(d) violates the Constitution; or
(e) is otherwise unable or unfit to discharge the
functions of the office.
51. Where the office of any member becomes vacant, Vacancy.

whether by death or otherwise, the Chief Justice may

appoint another person to be a member of the Tribunal and
such member shall serve for his or her full term.
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2024 Sugar No. 11
52. The Chief Justice shall appoint a Secretary and Secretary of the
Tribunal.
such other staff of the Tribunal necessary for the proper
functioning of the Tribunal.
53. (1) The remuneration of the staff of the Tribunal Remuneration of
members and staff
and the expenses of the Tribunal shall be paid out of of the Tribunal.
monies allocated by the National Assembly to the Judiciary
Fund.
(2) The Chairperson and members of the Tribunal
shall be paid such allowances and be reimbursed such
expenses as shall be determined by the Judicial Service
Commission on the recommendation of the Salaries and
Remuneration Commission.
PART VIII—MISCELLANEOUS PROVISIONS
54. (1) The Board shall, at least once in every year, Annual general
meeting.
convene an annual general meeting of representatives of
millers and growers for the purposes of considering the
annual report and accounts of the Board and for the
purposes of transacting such other business of which notice
shall be given.
(2) The Board may convene special meetings in
addition to the meetings mentioned in subsection (1) for
such purposes and at such times as it may deem fit.
(3) Subject to this Act and any regulations made
thereunder, the Board may make rules for the regulation of
the conduct of business and procedure at the general
meetings convened pursuant to this section.
55. All sugar millers and importers shall ensure that all Quality, safety
and health control
sugar produced locally or imported into the country measures.
meets—
(a) safety and quality standards as set by the body for
the time being responsible for setting standards;
(b) safety and health standards for food handlers as set
by the body for the time being responsible for
public health; and
(c) environmental standards and issues as set by the
body from time to time being responsible for
public health.
56. (1) The Board shall carry out physical inspection Inspection for
quality and safety.
of premises licenced under section 23 quarterly to ensure
that safety and health standards are followed.
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(2) Every person licenced under this Act shall—
(a) not discharge any affluent, dangerous materials,
substances, oil or oil mixtures into land, water, air,
or aquatic environment;
(b) not release smoke or any air pollutant to the air
that pollutes the environment;
(c) manage any hazardous waste and materials;
(d) not import any hazardous waste;
(e) not mislabel any sugar or jaggery; and
(f) not aid or abet illegal trafficking of sugar or
related substances.
(3) When an offence under this section, is committed
by a body corporate, the body corporate and every director
or officer of the body corporate who ought to have had
knowledge of the commission of the offence and who did
not exercise due diligence, efficiency and economy to
ensure compliance with this Act, commits an offence and
shall be liable upon conviction to a fine not exceeding five
million shillings or to an imprisonment for a term not
exceeding five years.
(4) In addition to the sentence under subsection (3),
the Court may order for the revocation of a licence.
57. (1) The Board may direct any organization or Offences and
penalties.
person in the industry to produce any document or
information, or submit any returns which it reasonably
considers necessary for the proper performance of its
functions under this Act.
(2) Any person who—
(a) fails to comply with any direction given by the
Board under this Act; or
(b) furnishes to the Board any information or produces
any document which is false or misleading in any
material particular; or
(c) obstructs an officer of the Board in the
performance of his functions under this Act; or
(d) diverts or abets the diversion of transit sugar into
the domestic market,
commits an offence.
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2024 Sugar No. 11
(3) A person convicted of an offence under paragraph
(d) of subsection (2) shall be liable to a fine not exceeding
three times the domestic value of the sugar in respect of
which the offence is committed, or two million shillings,
whichever is the higher, or to imprisonment for a term not
exceeding ten years, or to both.
58. (1) There shall be, for the purposes of this Act, Sugar industry
agreements.
agreements to be known as the sugar industry agreements
negotiated between growers and millers, growers and out-
grower institutions, and millers and out-grower institutions.
(2) Without prejudice to the generality of subsection
(1), the matters to be provided for in the agreements shall
include—
(a) the designation of any agricultural crop from
which it is possible to manufacture sugar which is
subject to the agreement;
(b) the right of a grower to grow a sugar crop on their
land;
(c) a sugar-cane farming contract providing for the
terms and conditions of the production of
sugarcane and sugar and prescribing the rights and
obligations of growers and millers;
(d) a formula for determining the price to be paid by
millers to growers for sugarcane or any other
designated agricultural produce in consultation
with stakeholders, which may include any factor
related to the sale or other disposal of sugar
industry products;
(e) the functions to be executed by the Board in the
execution of the agreement;
(f) the granting of powers to the Board to enforce
penalties prescribed in the agreement for the
contravention of, or failure to comply with any
term of the agreement; and
(g) the enforcement of levies upon growers and
millers for the purpose of enabling the Board to
fulfill any obligation incurred by it in accordance
with its constitution.
59. (1) A person who contravenes any of the General penalty.

provisions of this Act commits an offence.

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No. 11 Sugar 2024
(2) A person convicted of an offence under this Act
for which no other penalty is provided for shall be liable—
(a) in the case of a first conviction, to a fine not less
than one million shillings or three times the market
value of the sugar in respect of which the offence
is committed, whichever is greater, or
imprisonment for a term not less than one year, or
to both such fine and imprisonment; and
(b) in the case of a second or subsequent conviction,
to a fine not less than three million shillings or
three time the market value of the sugar in respect
to which the offence is committed, whichever is
greater, or to imprisonment for a term not less than
two years, or to both such fine and imprisonment.
60. (1) There shall be a Sugarcane Pricing Committee Sugarcane pricing
committee.
(hereinafter referred to as “the committee”).
(2) The Committee shall comprise of—
(a) a nominee of the Board;
(b) one person nominated by the sugar manufacturers’
apex body;
(c) two persons nominated by the sugar growers’ apex
body;
(d) the Principal Secretary responsible for finance or a
representative appointed in writing;
(e) the Principal Secretary responsible for matters
related to Agriculture or a representative appointed
in writing;
(f) two representatives from county government
nominated by the Council of Governors; and
(g) a nominee of the Sugar Research and Training
Institute.
(3) The main objective of the Committee shall be to—
(a) review sugarcane prices in consultation with the
Sugar Research and Training Institute;
(b) provide a mechanism that remunerates farmers for
other products delivered from the processing of the
cane;
(c) ensure adherence to the negotiated cane processing
formula;
(d) transition to payment based on quality; and
(e) enforce contracts between farmers and millers.
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2024 Sugar No. 11
(4) The Committee shall come up with a pricing
formula and in doing so shall take into account the—
(a) pricing mechanism for all other cane related
charges paid by the farmer;
(b) an index that takes into consideration delayed
harvesting;
(c) transportation cost per tonne per kilometre of
sugarcane;
(d) inflation and adjustment cost of production; and
(e) formula as provided by the Sugar Research and
Training Institute.
(5) The Board shall offer secretarial services to the
Committee.
(6) The sugarcane prices set by the Committee under
subsection (3) shall be reviewed after three months
provided that the Committee may, with prior approval of
the Board, undertake an early review of the sugarcane
pricing.
PART IX —PROVISIONS ON DELEGATED
POWERS
61. (1) The Cabinet Secretary shall in consultation Regulations.

with county governments and the Board make regulations

generally for the better carrying into effect of the
provisions of this Act.
(2) Without prejudice to the generality of subsection
(1), may make regulations prescribing—
(a) the regulation and control of the production,
manufacturing, marketing, importation or
exportation of sugar and its by-products;
(b) the forms of licences to be issued under this Act,
and the form and manner of application for the
licences;
(c) the fees which may be charged for any activity
relating and incidental to the development,
products, marketing and distribution of sugar and
its by-products;
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(d) the establishment of weigh bridges and collection
centres;
(e) standards on grading, sampling and inspection,
tests and analysis, specifications, units of
measurement, code of practice and packaging,
preservation, conservation and transportation of
sugar and sugar by-products to ensure safety and
proper trading;
(f) production and import of sugar to ensure adequate
sugar availability in the country;
(g) guidelines on general industry agreements between
growers and millers and between parties in the
sugar industry;
(h) minimum period within which farmers are to be
paid for sugar crop delivered and penalties for
delayed payments;
(i) cane harvesting and transportation;
(j) the conditions with respect to the delivery,
measurement, examination and testing of sugar
crop;
(k) the seizure by an inspector of books, documents
and sugar crop which, in the opinion of the
inspector, may afford evidence of a contravention
of this Act and the doing of such other things as
may appear to the inspector to be necessary for
ascertaining whether compliance has been made
with this Act;
(l) the procedure for election of farmers’ and millers’
representatives to the Board and the pricing
committee; and
(m) penalties for non-adherence to sugar industry
agreements.
(3) Without prejudice to the generality of this section,
the Cabinet Secretary shall make the regulations necessary
to operationalize this Act within six months from the date
of commencement of this Act.
PART X —CONSEQUENTIAL AMENDMENTS
62. The Agriculture and Food Authority Act, 2013 is Amendment of the
First Schedule to
amended in the First Schedule by deleting paragraph 1(ii). No. 13 of 2013.
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2024 Sugar No. 11
63. The Crops Act, 2013 is amended in Part I of the Amendment of the
First Schedule to
First Schedule by deleting the words No. 16 of 2013.
“Sugarcane……….Saccharum spp”.
PART XI —SAVINGS AND TRANSITIONAL
PROVISIONS
64. (1) Upon the commencement of this Act, a person Transfer of Staff.

who was a member of the staff of the former Sugar Board

of Kenya before the commencement of the Agriculture and No. 13 of 2013.
Food Authority Act, 2013 and current staff of the Sugar
Directorate not being under any notice of dismissal or
resignation shall upon commencement of this Act and
subject to subsection (2) become a staff of the Board on
their current or improved terms and conditions of service.
(2) The pensions of staff under the provident fund of
Agriculture and Food Authority- Sugar Directorate shall on
the commencement of the Act vest in the Board.
65. All property, except such property as the Cabinet Transfer of assets
and liabilities.
Secretary may specify in writing, which, immediately
before the commencement of this Act, was vested in the
Government for the use of the Sugar Directorate of the
Agriculture and Food Authority, shall, on the date of
commencement of this Act, vest in the Board subject to all
interests, liabilities, charges, obligations and trusts affecting
that property.
66. All legal proceedings and claims pending in Pending
proceedings and
respect of actions and activities to which this Act apply claims.
shall be continued or enforced by or against the Board in
the same manner as they would have been continued or
enforced by or against the Agriculture and Food Authority
had this Act not been enacted.
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No. 11 Sugar 2024

FIRST SCHEDULE
[S. 2, 6(1)(b), 19(1), 20, and 21(c)]
DELINEATION OF SUGAR CATCHMENT
AREAS
SUGAR COUNTIES
CATCHMENT AREA
Central Kisumu, Southern Nandi,
and Kericho Counties
Upper Western Bungoma, Kakamega -
excluding Mumias area,
Trans- Nzoia, Uasin-gishu,
and Northern Nandi
Counties
Lower Western Mumias, Busia and Siaya
Counties
Southern Migori, Homa Bay, Kisii,
Narok Counties
Coastal Kwale, Tanariver, and
Lamu Counties
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SECOND SCHEDULE [Section 10]
PROVISIONS AS TO THE CONDUCT OF BUSINESS
AND AFFAIRS OF THE BOARD
1. (1) The Board shall meet not less than four times in Meetings.

every financial year and not more than four months shall
elapse between the date of one meeting and the date of the
next meeting.
(2) Notwithstanding the provisions of subparagraph
(1), the Chairperson may, and upon request in writing by at
least five members shall, convene a special meeting of the
Board at any time for the transaction of the business of the
Board.
(3) Unless three quarters of the total members of the
Board otherwise agree, at least fourteen days’ written
notice of every meeting of the Board shall be given to
every member of the Board.
(4) The quorum for the conduct of the business of the
Board shall be two thirds of the members of the Board
provided that in the case of a tie, the chairperson shall have
a casting vote.
(5) The chairperson shall preside at every meeting at
which he or she is present but, in his or her absence, the
members shall elect one of their members to preside who
shall with respect to that meeting and the business
transacted thereat have all the powers of the chairperson.
(6) Unless a unanimous decision is reached, a decision
on any matter before the Board shall be by a majority of the
votes of the members present and voting and in the case of
an equality of votes, the Chairperson or the person
presiding shall have a casting vote.
(7) Subject to paragraph (4), no proceeding of the
Board shall be invalid by reason only of a vacancy among
the members thereof.
(8) Subject to the provisions of this Schedule, the
Board may determine its own procedure and the procedure
for any committee of the Board and for the attendance of
other persons at its meetings and may make standing orders
in respect thereof.
2. (1) If a member is directly or indirectly interested in Disclosure of
interest.
any contract, proposed contract or other matter before the
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No. 11 Sugar 2024
Board and is present at a meeting of the Board at which the
contract, proposed contract or other matter is the subject of
consideration, he shall, at the meeting and as soon as
reasonably practicable after the commencement thereof,
disclose the fact and shall not take part in the consideration
or discussion of, or vote on, any questions with respect to
the contract or other matter, or be counted in the quorum of
the meeting during consideration of the matter.
(2) A disclosure of interest made under this paragraph
shall be recorded in the minutes of the meeting at which it
is made.
3. The affixing of the common seal of the Board shall The common seal.

be authenticated by the signature of the Chairperson and

the Chief Executive Officer and any document not required
by law to be made under seal and all decisions of the Board
may be authenticated by the signatures of the Chairperson
and the Chief Executive Officer:
Provided that the Board shall, in the absence of either
the Chairperson or the Chief Executive Officer in any
particular matter, nominate one member to authenticate the
seal of the Board on behalf of either the Chairperson or the
Chief Executive Officer.
4. Any contract or instrument which, if entered into or Contracts and
instruments.
executed by a person not being a body corporate, would not
require to be under seal, may be entered into or executed on
behalf of the Board by any person generally or specially
authorized by the Board for that purpose.
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2024 Sugar No. 11
THIRD SCHEDULE [Section 46.]
PROVISIONS AS TO THE MEETINGS AND
PROCEDURE OF THE TRIBUNAL
1. Any member of the Tribunal may, at any time, by Resignation.

notice in writing to the Chief Justice, resign his office.

2. (1) If a member of the Tribunal becomes a member of Vacation of
office.
the Board or, in any case where a member other than the
Chairperson is appointed to the service of the Government his
or her office shall become vacant.
(2) The Chairperson or a member of the Tribunal may be
removed from office by the Chief Justice if the member is—
(a) unable to discharge the functions of his office by
reason of mental or physical infirmity; or
(b) an undischarged bankrupt; or
(c) convicted of an offence involving fraud or
dishonesty; or
(d) convicted of a criminal offence and sentenced to
imprisonment for a term exceeding six months or to
a fine exceeding ten thousand shillings.
(3) In the event of the inability of any member of the
Tribunal to attend for the purpose of any particular
proceedings, the Chief Justice may appoint another person to
be a member of the Tribunal for the remainder of the term of
the member whose vacancy caused the appointment.
3. If any member of the Tribunal has any interest in any Disclosure of
interests.
particular proceedings before the Tribunal, he or she shall so
inform the Chief Justice and the Chief Justice may, after
considering that interest, appoint another member in his place
for the purpose of the particular proceedings.
4. The decision of the Tribunal shall be that of the Majority
decisions.
majority and shall be signed by the members thereof agreeing
thereto.
5. The quorum of the Tribunal shall be three members. Quorum.

6. No proceedings of the Tribunal shall be invalid by Proceedings to be

valid.
reason only of a vacancy among the members thereof.
7. The Tribunal shall sit at such place as it may consider Venue.

most convenient having regard to all the circumstances of the

particular proceedings.
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No. 11 Sugar 2024
8. Subject to the provisions of this Schedule, the Rules.

Tribunal shall have power to make rules governing its

procedure.
9. A document purporting to be a copy of any order of Proof of
document.
the Tribunal, and certified by the Chairperson to be a true
copy thereof, shall in any legal proceedings be prima facie
evidence of the order.