The Nuts and Oil Crops Development Bill, 2023
Status Timeline
Proposed
Done ยท 17 Sep 2026
Public Review
Done
Debate
Active now
Executive
Pending
Final
Pending
Board Headquarters to be Established in Kilifi County
Section 4 establishes the Nuts and Oil Crops Development Board as a body corporate, with its headquarters located in Kilifi County. Under Section 5, the Board's management will consist of:
- A chairperson appointed by the President;
- The Principal Secretaries responsible for agriculture and trade;
- Five members with ten years' experience in the sector appointed by the Cabinet Secretary (consisting of three farmers, one processor, and one researcher);
- One person nominated by the Council of County Governors.
Mandatory County-Level Registration for Growers and Operators
Under Section 24, individuals and entities are prohibited from carrying out business as nuts and oil crop growers, nursery operators, cooperative societies, or associations unless registered by their respective county government.
- Registration is free of charge.
- Growers who are registered members of a cooperative society that is already registered in the same county are exempt from individual registration.
- Cooperative societies must submit their membership registers annually and notify counties of any changes within 30 days.
KSh 1 Million Fine for Unlicensed Processing
Section 25 mandates that any person intending to process nuts and oil crop products must apply for and obtain a license from the respective county executive committee member.
- Applications must be considered within 14 days of receipt.
- Licenses are non-transferable.
- Under Section 26(5), processing without a license constitutes an offence carrying a fine not exceeding KSh 1 million, imprisonment for up to two years, or both.
Crops Act No. 16 of 2013 Amended
Section 39 amends the First Schedule to the Crops Act (No. 16 of 2013) by deleting several crops from its schedule of scheduled crops. This removes them from the jurisdiction of the Agriculture and Food Authority. The affected crops are:
- Sunflower
- Sesame, Safflower, and Ground nut
- Coconut, Cashew nut, Castor beans, Oil Seed or Rapeseed, Jojoba, and Linseed
Bill No.
Senate Bills No. 47 of 2023
Gazette No.
Supplement No. 184
Sponsor
Hamida Kibwana
Background
The principal object of the Nuts and Oil Crops Development Bill, 2023 is to establish the Nuts and Oil Crops Development Board to revamp the policy and institutional framework of the nuts and oil crops industry in Kenya. Agriculture is a devolved function under the Fourth Schedule to the Constitution, and the Bill aims to facilitate county-level development, increase farm productivity, encourage value addition, and secure higher incomes for local farmers and traders.
Key Amendments
Amendment of Crops Act (No. 16 of 2013)
Section 39 of the Bill deletes various nuts and oil crops from the First Schedule of the Crops Act, 2013. This transfers regulatory jurisdiction over sunflower, sesame, safflower, ground nut, coconut, cashew nut, castor beans, oil seed/rapeseed, jojoba, and linseed to the newly established Board.
New Obligations
Registration and Licensing
- Growers and Cooperatives: All growers, nursery operators, and local associations must register with their county government (Section 24).
- Processors: Processors must obtain a license from their county executive committee member (Section 25). Applications require the payment of prescribed fees and must be evaluated within 14 days.
- Public Gazette Notice: At least 30 days before granting a processing license, the county executive committee member must publish a notice in the Gazette to allow the public to lodge objections within 14 days (Section 26).
Accountability and Interest Disclosure
- Confidentiality: Every member and employee of the Board must sign a confidentiality agreement (Section 36(5)).
- Conflict of Interest: Board and committee members must declare any direct or indirect private interests in matters under consideration. Affected members are barred from participating in discussions or voting on those matters (Schedule, Para 5).
Penalties
- Unlicensed Processing: Processing nuts and oil crops without a license carries a fine of up to KSh 1 million, imprisonment for up to two years, or both (Section 26(5)).
- Failure to Disclose Conflict of Interest: Board members who fail to declare a conflict of interest commit an offence and face a fine of up to KSh 500,000, imprisonment for up to seven years, or both (Schedule, Para 5(4)).
- General Penalty: Any offence under the Act for which no specific penalty is provided carries a fine of not less than KSh 20,000, imprisonment for up to six months, or both (Section 37(1)).
Transitional Provisions
- Assets and Contracts: All funds, assets, rights, liabilities, and contracts previously vested in the Agriculture and Food Authority (AFA) regarding the nuts and oil sector are transferred directly to the Board (Sections 40 and 41).
- Pending Proceedings: Legal proceedings pending by or against the AFA regarding the nuts and oil sector will be prosecuted by or against the Board (Section 42).
- Staff Transfer: Employees of the AFA currently assigned to the nuts and oil sector will transition to become staff members of the new Board upon the enactment of the Bill (Section 45).
- Existing Authorizations: Existing permits, licenses, or registrations issued by the AFA remain valid and will be treated as if issued under the new Act (Section 44).
Gazettement
The Nuts and Oil Crops Development Bill (Senate Bills No. 47 of 2023) was published in the Kenya Gazette.
Committed to Committee
The Standing Committee on Agriculture, Livestock and Fisheries tabled its report on the bill.
First Reading
The bill was read a First Time in the Senate.
Second Reading
The bill was read a Second Time and passed by the Senate.
Committee of the Whole House
The bill is awaiting Division at the Committee of the Whole House stage.