The Crops Laws (Amendment) Bill, 2026
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
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Executive
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Final
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Lending Powers Removed from Sector Boards
The Bill removes 'lending' from the corporate functions of multiple agricultural bodies, including the Kenya Agricultural and Livestock Research Organisation (under Cap. 319), the Tea Board of Kenya, the Tea Research Foundation (under Cap. 343), the Kenya Sugar Board, and the Kenya Sugar Research and Training Institute (under No. 11 of 2024).
KADCO Designated as Central Agricultural Lender
The Bill formally introduces the Kenya Agribusiness Development Corporation Limited (KADCO) into the Sugar Act, No. 11 of 2024. KADCO, registered under the Companies Act in accordance with the Government Owned Enterprises Act, 2025, will take over and centralize agricultural lending functions previously scattered across sector-specific entities.
Sugar Development Levy Funds Re-routed to KADCO
Section 40(6)(c) of the Sugar Act, No. 11 of 2024 is amended to mandate that forty percent of the Sugar Development Levy applied to cane development and productivity enhancement must now be apportioned and directed to KADCO for the purpose of lending.
Bill No.
No. 30 of 2026
Gazette No.
Supplement No. 134
Sponsor
Kimani Ichung'wah
Background
Historically, agricultural lending in Kenya was managed by the Agricultural Finance Corporation and the Commodities Fund. Following the dissolution of both entities under the Government Owned Enterprises Act, 2025, the Kenya Agribusiness Development Corporation Limited (KADCO) was established under the Companies Act to consolidate agricultural lending. However, existing sector-specific laws still assign lending mandates to bodies like the Kenya Agricultural and Livestock Research Organisation, the Tea Board of Kenya, and the Kenya Sugar Board. This Bill amends those statutes to fully align the agricultural sector with the new centralized lending framework.
Key Amendments
Kenya Agricultural and Livestock Research Act (Cap. 319)
- Section 3(2)(c): Amended by deleting 'and lending' from the corporate powers of the Kenya Agricultural and Livestock Research Organisation, removing its capacity to lend money.
Tea Act (Cap. 343)
- Section 3(2)(c): Amended to remove 'and lending' from the corporate powers of the Tea Board of Kenya.
- Section 55(2)(c): Amended to delete 'and lending' from the corporate powers of the Tea Research Foundation.
Sugar Act (No. 11 of 2024)
- Section 2: Amended to insert the definition of 'Kenya Agribusiness Development Corporation Limited' (KADCO), registered under the Companies Act in accordance with the Government Owned Enterprises Act, 2025.
- Section 3(2)(c): Amended to remove 'or lending' from the powers of the Kenya Sugar Board.
- Section 29(2)(c): Amended to remove 'and lending' from the powers of the Kenya Sugar Research and Training Institute.
- Section 40(6)(c): Amended to ensure that funds from the Sugar Development Levy allocated for cane development and productivity enhancement (forty percent of the levy) are apportioned to KADCO for lending.
New Obligations
Allocation of the Sugar Development Levy
- The Cabinet Secretary, in consultation with the Kenya Sugar Board, must ensure that forty percent of the collected Sugar Development Levy is apportioned and directed to KADCO specifically for cane development lending purposes.
Gazettement
The Crops Laws (Amendment) Bill, 2026 was published in the Kenya Gazette No. 134.
First Reading
The Bill was read a First Time in the National Assembly.