The Rice Bill, 2023
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Proposed
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Public Review
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Debate
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Executive
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Final
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Compulsory Licensing for Rice Millers
Under Section 24, individuals and entities are prohibited from engaging in the business of milling or processing rice products unless they are licensed by their respective county executive committee member. Operating without a license is an offence carrying a fine of up to KSh 1,000,000, or twice the value of the processed products, or imprisonment for up to two years, or both (Section 24(6)).
Establishment of the Kenya Rice Board
Section 4 establishes the Kenya Rice Board as a body corporate. Its primary mandate under Section 9 includes formulating national policies, regulating the marketing, import, and export of rice, facilitating research dissemination, implementing disease-control measures, and advising on equitable pricing mechanisms for paddy and milled rice.
Mandatory County Registration of Rice Growers
Section 23 requires all rice growers, nursery operators, cooperative societies, and associations to register with their respective county governments. County governments are prohibited from charging any registration fees for this process, which is mandated strictly for statistical and planning purposes.
Establishment of the Rice Development Levy and Fund
Section 31 empowers the Cabinet Secretary, in consultation with the Board and the Council of County Governors, to impose a levy on domestic and imported rice. Collected levies will finance the newly established Rice Development Fund (Section 32) to support the industry and purchase local rice. Late payments attract a penalty of 5% of the unpaid sum per month (Section 31(5)).
Stiff Penalties for Transit Rice Diversion
Section 41 makes it an offence to divert transit rice into the local Kenyan market or to abet such diversion. Conviction carries a fine of up to KSh 2,000,000 or three times the domestic value of the diverted rice, whichever is higher, or imprisonment for up to ten years, or both.
Bill No.
Senate Bill No. 19 of 2023
Gazette No.
Supplement No. 66 of 2023
Sponsor
JAMES KAMAU MURANGO
Background
Rice is a critical food and cash crop in Kenya with direct implications for food security and economic growth. Historically, the administration and regulation of the rice industry was vested in the National Cereals and Produce Board (NCPB) under the National Cereals and Produce Board Act, 1986. However, the sector has faced persistent administrative inefficiencies, including high cost of inputs, lack of structured markets, exploitation by middlemen, and the adulteration of aromatic rice. The Rice Bill, 2023 seeks to address these gaps by establishing a specialized regulator and dedicated development fund.
Key Amendments
The Bill removes rice from general agricultural frameworks to create a dedicated administrative structure:
- Crops Act, 2013: Amended under Section 46(1) by deleting "Rice... Oryza sativa L. (1)" from Part 3 of the First Schedule.
- National Cereals and Produce Board Act, 1986: Amended under Section 46(2) by deleting "rice paddy" from the First Schedule, officially removing it from the NCPB's purview.
New Obligations
- Registration: Rice growers, nursery operators, and local cooperative societies must register with their county government (Section 23). County governments must maintain up-to-date registers and submit copies to the Kenya Rice Board quarterly.
- Licensing: Any person intending to mill or process rice must apply for a license from the county executive committee member in the prescribed form and pay the required fee (Section 24).
- Standards Compliance: Section 39 mandates that all locally produced or imported rice must comply with quality standards set by the national standards body, public health safety guidelines, and environmental safety regulations.
Penalties
- Operating Without a License: Under Section 24(6), milling or processing rice without a license attracts a fine of up to KSh 1,000,000, or twice the value of the products (whichever is greater), or imprisonment for up to two years, or both.
- Transit Diversion: Under Section 41(3), diverting transit rice into the domestic market carries a fine of up to KSh 2,000,000 or three times the domestic market value of the rice, or imprisonment for up to ten years, or both.
- Failure to Disclose Board Conflict: Any Board member who fails to disclose a conflict of interest in a matter before the Board commits an offence, carrying a fine of up to KSh 500,000, or imprisonment for up to seven years, or both (Schedule, Paragraph 5(4)).
- General Offences: Any other contraventions of the Act where no specific penalty is provided attract a fine of up to KSh 500,000, or imprisonment for up to one year, or both (Section 41(5)).
Transitional Provisions
- Staff Transfer: Section 43 transfers all staff of the Rice Promotion Programme Unit previously employed under the Ministry of Agriculture and Livestock Development to the Kenya Rice Board.
- Asset Transfer: All assets, liabilities, and obligations previously held by the Government for the Rice Promotion Programme Unit are transferred to and vested in the Board (Section 44).
- Pending Proceedings: Any pending legal proceedings and claims relating to actions previously under the NCPB will be continued by or against the Board (Section 45).
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