The Agriculture Produce (Minimum Guaranteed Returns) Bill, 2024

26 Sep 2024 domainSenate No. 48 of 2024 Gazette: Supplement No. 175 of 2024
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Proposed

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Debate

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Executive

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Final

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1

County-Level Guaranteed Return Funds Established

Section 3 establishes the Agriculture Produce Minimum Guaranteed Returns Fund in every county. The Fund's objects are to:

  • Provide minimum guaranteed returns to secure farmers' incomes.
  • Accelerate agricultural growth and maintain consistent production levels.
  • Improve food security.

The Fund will consist of monies appropriated by county assemblies, grants, county fees or levies, and investment earnings (Section 4).

2

Guaranteed Returns Set at 20% Above Production Costs

Under Section 13, the minimum guaranteed return is fixed at twenty percent of the profit above the comprehensive cost of production.

The "comprehensive cost" will be calculated using Kenya National Bureau of Statistics (KNBS) data, factoring in:

  • Farm inputs (seeds, fertilizers, pesticides, herbicides).
  • Livestock inputs (animal feeds, drugs).
  • Labor, fuel, irrigation, machinery, and farm rent.
3

Direct Bank Transfers to Cushion Registered Farmers

Guaranteed payments will only be triggered under specific conditions outlined in Section 13(5):

  • The agricultural produce must be largely consumed locally.
  • Market returns obtained by beneficiaries must fall below the recommended minimum guaranteed returns.
  • Payments must be made via direct transfers to the beneficiaries' bank accounts.
4

New County Committees to Manage Funds

Section 6 vests fund management in a Committee in each county. The Committee will comprise:

  • The county chief officer in charge of agriculture (Chairperson).
  • The county chief officers in charge of finance and trade.
  • Two representatives (opposite gender) from registered agricultural producer associations.
  • Two representatives (opposite gender) from unregistered agricultural producers.

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