THE HORTICULTURAL CROPS AUTHORITY BILL, 2024
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
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Final
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New Import, Export, and Processing Licences Required
Under Section 20, any person who processes, imports, or exports horticultural produce or products must be licensed by the Horticultural Crops Authority. Operating without this license carries a fine of up to KSh 2 million, imprisonment for up to three years, or both. A similar local trade licensing regime is established under Section 21, to be administered by county governments.
Mandatory Registration for Dealers and Growers
Under Section 23, dealers in horticultural produce (including marketing agents, ship chandlers, clearing agents, nursery operators, and packaging facilities) must register with either the Authority or county governments. Operating as an unregistered dealer carries a fine of up to KSh 1 million, a prison term of up to three years, or both. Commercial growers must also be registered by county governments free of charge under Section 24.
New Export and Import Levies Introduced
Section 43 allows the Cabinet Secretary to impose levies on horticultural exports and imports:
- An export levy of 0.5% on the free on board (FOB) value of canned, bottled, preserved, or dehydrated horticultural produce.
- An import levy of 4% on the FOB value of finished horticultural products.
- An import levy of 2% on the FOB value of fresh horticultural produce.
Horticulture Regulation Separated from the Crops Act
Section 54 and the Third Schedule amend the Crops Act, No. 16 of 2013, by deleting fruit crops, medicinal and aromatic plants, vegetables, herbs, spices, and ornamental plants from its First Schedule. This effectively removes these crops from the jurisdiction of the Agriculture and Food Authority and transfers their regulation to the newly established Horticultural Crops Authority.
Bill No.
No. 42 of 2024
Gazette No.
Supplement No. 157 of 2024
Sponsor
Sabina Wanjiru Chege
Background
The Horticultural Crops Authority Bill, 2024, establishes the Horticultural Crops Authority as a specialized corporate body to regulate and promote the horticulture sector in Kenya. This authority is designed to take over functions formerly managed by the Horticultural Crops Directorate under the Agriculture and Food Authority (AFA), streamlining the development, post-harvest handling, and marketing of fruit, vegetables, flowers, and medicinal plants.
Key Amendments
- Crops Act, No. 16 of 2013: The Bill amends the First Schedule of the Crops Act, No. 16 of 2013, by removing horticultural crops, including specified fruits, vegetables, medicinal plants, herbs, spices, and flowers (listed in the Third Schedule of this Bill), from the scope of the 2013 Act to place them under the sole jurisdiction of the new Horticultural Crops Authority.
New Obligations
- Licensing: Importers, exporters, and export processors must obtain licences from the Authority. Local trade processors must obtain licences from respective county governments. Under Section 22, late applications for licence renewals incur a 10% surcharge on the prescribed fee.
- Registration: Commercial growers must register free of charge with their respective county governments. Horticultural dealers (including export and domestic marketing agents, ship chandlers, nursery operators, and packaging facilities) must register with the Authority or county governments.
- Premises: Under Section 25, packing, processing, and storage facilities must be registered and licensed.
- Levies: Exporters of processed, canned, bottled, or dehydrated produce face a 0.5% FOB levy. Importers of finished products face a 4% FOB levy, and importers of fresh produce face a 2% FOB levy.
- Cess: County governments may impose cess for crop development and market infrastructure within the county, but they cannot levy cess on horticultural produce destined for the export market.
Penalties
- Unlicensed Processing, Importing, or Exporting (Section 20 & 21): Fines of up to KSh 2 million, imprisonment for up to three years, or both.
- Unregistered Dealing or Premises (Section 23 & 25): Fines of up to KSh 1 million, imprisonment for up to three years, or both.
- Obstructing Inspectors (Section 41): Hindering a horticulture inspector or failing to provide information carries a fine of up to KSh 1 million, imprisonment for up to one year, or both.
- General Penalty (Section 52): For any offence where no specific penalty is provided, a fine of up to KSh 200,000, imprisonment for up to six months, or both.
Transitional Provisions
- Transfer of Staff: Officers of the Horticultural Crops Directorate under the Agriculture and Food Authority (AFA) will transition to the new Authority, subject to board approval.
- Assets and Liabilities: All assets, liabilities, and existing contracts relating to horticultural crops previously held by the Agriculture and Food Authority are transferred to the Horticultural Crops Authority.
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