THE COFFEE BILL, 2023
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
Establishment of the Coffee Board of Kenya
Part II of the Bill establishes the Coffee Board of Kenya as a body corporate to:
- Regulate and promote the development of the coffee industry.
- Register coffee dealers and consider applications for permits and licences.
- Establish coffee quality standards and code of practice in collaboration with the Kenya Bureau of Standards.
New Licensing and Registration Requirements
Part III and Part IV introduce strict licensing and registration protocols:
- Registration: Coffee growers, nursery operators, millers, roasters, and cooperative societies must register with their respective county governments (Section 27).
- Licensing: Operating a pulping station, grower's mill, coffee roaster, warehouse, or commercial coffee mill requires a licence from the county government (Section 25).
- Penalties: Performing functions without the required licence under Section 28(13) is an offence carrying a fine of up to KSh 1 million, or twice the value of the coffee, or imprisonment for up to two years.
Two Per Cent Coffee Development Levy
Section 64 empowers the Cabinet Secretary to impose a levy of two per cent on the export import value remitted by coffee buyers, apportioned as follows:
- 30% to the Coffee Research and Training Institute.
- 15% to the Board for regulatory purposes.
- 20% for price stabilization managed by the Commodities Fund.
- 10% to the Board for marketing purposes.
- 25% to coffee growing counties as a conditional grant.
Creation of the Coffee Research and Training Institute
Part IX establishes the Coffee Research and Training Institute of Kenya to lead research and training. The Institute will:
- Act as the custodian of the Kenyan Coffee Genome.
- Map out areas suitable for coffee production.
- Develop climate-resilient coffee crops and disease-resistant varieties.
Bill No.
Bill No. 10 of 2023
Gazette No.
Supplement No. 26 of 2023
Background
The Coffee Bill, 2023 is designed to transition the coffee sector away from the consolidated crops regulatory framework under the Agriculture and Food Authority (AFA). It establishes dedicated national institutions—the Coffee Board of Kenya and the Coffee Research and Training Institute—while assigning distinct regulatory, licensing, and enforcement duties to county governments in line with the devolved governance structure.
Key Amendments
- Establishment of the Coffee Board of Kenya (Section 4): Re-establishes the Board to regulate, promote, and coordinate marketing and capacity building.
- Establishment of the Coffee Research and Training Institute (Section 69): Establishes a dedicated research body in Kiambu County to focus on coffee breeding, technology transfer, and genome preservation.
- Amendment of the Crops Act (Section 107): Amends Cap 318 by removing "coffee" from its scheduling, officially transitioning all coffee regulation to this new standalone Act.
New Obligations
- County Government Licensing: County governments are obligated to maintain up-to-date registers of coffee growers, nurseries, millers, and roasters, and to issue movement permits (Section 23).
- Traceability and Disclosures (Section 45): Pulping stations and mills must implement a coffee traceability system. Commercial millers must maintain comprehensive insurance cover against fire and theft, digitize weight precision data, and account for mill sweepings.
- Direct Sales Documentation (Section 50): Growers undertaking direct sales must submit details of contracts, coffee grades, quantities, prices, and dispute resolution clauses to the Board within 14 days of contract completion.
- Warehouse Standards (Section 54): Coffee must be stored in designated warehouses that have been inspected, approved, and licensed by county governments.
Penalties
- Operating Without a Licence (Section 28): Fines up to KSh 1 million, twice the value of the coffee involved, or imprisonment for up to two years, or both.
- Illegal Movement of Coffee (Section 33): Moving coffee without a valid movement permit attracts a fine not exceeding KSh 500,000, imprisonment for up to one year, or both.
- Illegal Coffee Blending (Section 58): Blending coffee without declaring the percentage of Kenyan coffee is an offence carrying a fine up to twice the value of the blended coffee, or imprisonment for up to one year.
- General Penalty (Section 97): Where no specific penalty is provided, offences are subject to a fine up to KSh 50,000 or twice the value of the coffee, or imprisonment for up to six months.
Transitional Provisions
- Transfer of Assets and Liabilities (Section 101): All coffee-related assets, funds, and liabilities previously held by the Agriculture and Food Authority (AFA) and the Kenya Agricultural and Livestock Research Organisation (KALRO) are transferred to the new Board and Institute.
- Staff Transition (Section 105): Staff members currently employed by AFA and KALRO who are dedicated to coffee regulation and research will transition to the Board and the Institute under the same terms of service.
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