Senate Bill no5 of 2023 on the Cotton Industry Development Bill 2023

REPUBLICOFKENYA PARLIAMENT

SENATEBILLS

(Bill No.5 of 2023)

THECOTTONINDUSTRYDEVELOPMENTBILL,2023

(A Bill published in the Kenya Gazette Supplement No. 9 of 6th February, 2023 and passed by theSenate,with amendments,on 1st August,2023.)

THECOTTONINDUSTRYDEVELOPMENTBILL,2023

ARRANGEMENTOFCLAUSES

Clause

• 1 —Short title.
• 2 ——Interpretation.
• 3 ——Objects.

PARTII-COTTONINDUSTRYDEVELOPMENTBOARD

• 4 ——Establishment of the Board.
• 5 -—-Headquarters of the Board.
• 6 ——Powers of the Board.
• 7 —Composition of the Board.
• 8 —-Qualifications for appointment as a member.
• 9 —Tenure of appointment.
• 10 —Vacation of office.
• 11 ——Functions of the Board.
• 12 —Committees of theBoard.
• 13 -—-Delegation by the Board.
• 14 —Remuneration of members of the Board.
• 15 -—Chief executive officer.
• 16 ———Functions of the chief executive officer.
• 17—Removal of the chief executive officer.
• 18 ——Staff of the Board.
• 19 —-Protection from personal liability.
• 20 —Common seal of the Board.
• 21 —Signing authority.
• 22 —Meetings of the Board.

PARTI-PRELIMINARY

PARTIII-ROLEOFCOUNTYGOVERNMENTS

• 23 —-Role of county governments.
• 24 —County Cotton Development Committee

PARTIV-REGULATORYPROVISIONS

• 25 —-Registration.
• 26 ——Licensing of manufacturers or processors.
• 27 ——Refusal to grant licence.
• 28 ——-Revocation oflicence.
• 29 —-Compliance notice.
• 30 ——Effect of cancellation of licence.
• 31 —Appeals.
• 32 —Designation of collection centres.
• 33 -- Licencing of importers and exporters.
• 34 ——Renewal of a Licence,
• 35 —Revocationofalicence
• 36 -—- Compliance notice.
• 37 ——Effectofrevocation ofalicence

PARTV-FINANCIALPROVISIONS

• 38 ——Funds of the Board.
• 39 -——-Imposition of levy.
• 40—Annual estimates.
• 41—Accounts andAudit.
• 42 —-Annual Report and Publication.
• 43—Financial year of the Board.

PARTVI-MISCELLANEOUSPROVISIONS

• 44 -——Incentives.
• 45 ——-Enactment of county specific legislation.

• 46 —Penalties.
• 47 —Regulations.
• 48 —-Publication of cotton growing counties.
• 49 —Consequential amendments.

PARTVII-TRANSITIONALPROVISIONS

• 50 ——Interpretation
• 51 ——Rights and obligations
• 52 —Assets
• 53 ——Legal proceedings
• 54 ———Reference to written Laws
• 55 -—-Previous authorisations
• 56 -Staff

FIRSTSCHEDULE—PROVISIONSRELATINGTOTHECONDUCT OF BUSINESSANDAFFAIRSOFTHEBOARD.

SECOND SCHEDULE—COUNTIES.

THECOTTONINDUSTRYDEVELOPMENTBILL,2023

ABill for

AN ACT of Parliament to provide for the production, processing, marketing and distribution of cotton in Kenya and its products; establish the Cotton Industry Development Board;provide a framework for cotton farming; ensure value addition to cotton and its related products; and for connected purposes.

ENACTEDbytheParliamentofKenya,asfollows-

| | PARTI—PRELIMINARY | |-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Short title. | 1.This Act may becitedas theCottonIndustry DevelopmentAct,2023. | | Interpretation. | 2.In this Act,unless the context otherwise requires ——— "Board" means the Cotton Industry Development Board established under section 4; "Cabinet Secretary” means the Cabinet Secretary responsible for matters relating to agriculture; "chief executive officer” means the person appointed as the chief executive officer to theBoard under section 15; "Cotton industry” includes growers, ginners, spinners and cotton value addition industries; "cotton product” means any product, extract or substance obtained or derivedfrom cotton by any treatment orprocess; "cotton seed” means cotton seed, including planting seed, produced from raw cotton; "Council of County Governors” means the Council of County Governors establishedunder section19of theIntergovernmental Relations Act; and |

| | "county executive committee member”means the county executivecommitteemember responsiblefor mattersrelating to agriculture. | |-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Objects. | 3.The objects of this Act is to provide a framework -- (a) to promote a globally competitive cotton industry; (b) tofacilitate the production,valueaddition and processing of safe and healthy cotton and its products; C topromote thegenerationofhighincomeforcotton farmers and traders; )forthecontinuousandsustainedresearchand extension services for thedevelopment of the cotton industry; e) tofacilitate theintroduction of modern cotton farming techniques and general modernisation of the cotton industry; and f for theprovisionoffinancial support to thevarious players in the cotton industry. | | | PARTII-THECOTTONINDUSTRYDEVELOPMENT BOARD | | Establishment of the Board. | 4.(1) There is established a Board to be known as the Cotton IndustryDevelopment Board. (2)The Board shall be a body corporate with perpetual succession and a common seal and shall,in its corporate name,be capable of- suing and being sued; (b) taking, purchasing or otherwise acquiring, holding, charging and disposingof movable or immovable property; entering into contracts; borrowing and lendingmoney; and |

| Headquarters of the Board. | doing or performing all such other things or acts as may be necessary for the proper discharge of its functions under this Act, which may be lawfully done or performed by a body corporate. 5.(1) The headquarters of the Board shall be in Nairobi. (2) The Board may establish such other offices anywhere in Kenya as it may consider necessary for the effective performance of itsfunctionsunder thisAct. | |------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Powersofthe Board. | 6.(1) TheBoard shall have all the powers necessary for the proper performance of its functions under this Act. (2) Without prejudice to the generality of the foregoing, the Board shall have power to- — (a) enter into contracts; (b) manage, control and administer the assets of the Board in such manner and for such purposes as best promote the purpose for which the Board is established; () receive gifts, grants, donations or endowments made to the Board and make disbursement therefrom in accordance with the provisions of this Act; (d) subject to the approval of the Cabinet Secretary for the time being responsible for matters relating to finance, invest any of the Board's funds not immediately required for the purposes of this Act, as it may determine; and (e) open such bank accounts for its funds as may be necessary. (3) The Board may,if it considers it necessary,create or take part in reation of, become a member of, or associate with a body or ration designed toassist orpromotethecottonindustry. | | Composition of the Board. | 7. (1) The Board shall consist —- the Gazette; |

| Act No.2 of2012. | (b) thePrincipal Secretary responsible for agriculture; (c) the Principal Secretary responsible for matters relatingtotrade; (d) six persons representing cotton farmers,one from each region specified in the second schedule, nominatedby thefarmers’cooperativesocietieswith thelargest membershipin the respective counties; (e) one person with knowledge of the cotton industry nominated by the Council of County governors; (f) one person representing ginners nominated by the apex association of ginners; and (g) the chief executive officer. (2)The CabinetSecretary shall appoint themembers under subsection (1)(d) (e) and (f) by notice in the Gazette. (3)The chief executive officershall be an ex officiomember and secretary totheBoard andshallhavenorighttovote at any meeting of the Board. | |--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Qualificationsfor appointment as a member. | 8. (1) A person is qualified for appointment as a member of the Board under section 7(1)(a), (d) (e) and (f) if that person- (a) is a citizen of Kenya; (b) holds, in the case of a person appointed - (i) section 7(1)(a) (e) and (f), a degree from a universityrecognized inKenya;and (ii) section 7(1)(d), a certificate in secondary school education.; (c) has at least three years’ experience in management; and (d)meets the requirements of leadership and integrity set out in Chapter Six of the Constitution. (2) A person is not qualified for appointment if that person- (a)is convicted ofa criminal offence and sentenced to a term of imprisonment of at least six months; |

| | (b) is a member of Parliament or county assembly; or (c) is adjudged bankrupt. | |-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Tenureof appointment. | 9.A person who is appointed under section 7 shall serve for a term of threeyearsrenewableforonefurther term. | | Vacation ofoffice. | 10.A person shall cease to be a member of the Board if that person—— (a)is absent, without reasonable cause, for three consecutivemeetings oftheBoard; (b) b becomes an officer, agent or member of staff of the Board; ? resigns in writing addressed, in the case of the chairperson, to the President, and in the case of any other member, to the Cabinet Secretary; (d)is convicted of a criminal offence and sentenced to a term of imprisonment of at least six months; (e) is declared bankrupt; (g)is unable to perform the functions of office by reason of mental or physical infirmity; or | | Functions of the Board. | 11. (1) The functions of the Board shall be to — (a)regulate and promote the development of the cotton growing and cotton ginning; (b) advise the Cabinet Secretary which counties qualify as cotton producing; (c) make recommendations to the Cabinet Secretary on the implementation of strategies, plans and policies relating to the cotton sector; (d) promote the diversification of cotton products; (e) regulate the import and export of cotton lint and cotton seed; (f) promote the marketing of cotton products and by- products in both local and foreign markets; |

| (g)formulatenationalstandardsacceptableinthe international competitiveness and reliability of the country as a producer and suppliers of cotton products is preserved; (h) carryout surveillance andinspectionstoensure compliancewith the standards andlegislation on the cotton sector; (i)establish linkages with local and international training andresearchinstitutionstoconductscientificresearch and investigations in all areas pertaining to the development of the cotton industry; G undertaketechnology transfer and provide technical assistanceto countygovernments onmattersrelating to cotton; (k) collect, collate and disseminate information on the andpractices toensuremaximisation ofyieldsby cotton farmers; (l)regulate themarketing and the exportation of cotton products and by-productsto conform to the quality or standards recognized in the international market; (m) put in place a framework for capacity building and training of various players in the cotton sector; (n)developand enforce thecottonindustrystandards and industry code of practice in collaboration with the KenyaBureau ofStandards; (o)carryoutperiodicresearch todetermine andmake recommendation on fair prices for cotton; (p)undertake research and develop suitable affordable cotton seeds in consultation with the National Biosafety Authority and other research institutions; (@) in collaboration with theAgricultural Development Corporation and other relevant government agencies (i)provide affordable equipment, farm inputs including seeds,fertilizers and pesticides to the growers; and | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| | (ii) design affordable crop insurance models; and (r)carry out such other functions as may be assigned by theCabinet Secretaryor conferredunder anyother law. (2)The Board shall consult and collaboratewith the county executive committee members in the development, promotion and regulation of the cotton industry in the respective counties. | |--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Committeesofthe Board | 12.(1) The Board may establish such committees as it may consider necessary for the efficient performance of its functions and the exercise ofitspowers under thisAct. (2) The Board may co-opt any person to sit in a committee established under subsection (1) such persons whoseknowledge and skills are found necessary for the performance of the functions ofthe Board. | | Delegation by the Board. | 13. The Board may, by resolution either generally or in any particular case, delegate to any committee, member, officer, employee or agent oftheBoard,the exercise of any of thepowers or the performance of any of thefunctions of theBoard under this Act or under any other written law. | | Remunerationof members of the Board. | 14.The members of the Board shall be paid such remuneration,fees or allowances as the Cabinet Secretary shall,in consultationwiththeSalaries andRemunerationCommission, determine. | | Chiefexecutive officer. | 15.(1) There shall be a chief executive officer of the Board whoshallbe competitivelyrecruited and appointed bytheBoard on such terms and conditions as theBoard shall determine. (2) A person is qualified for appointment as the chief executive officer if that person— (a) is a citizen of Kenya; (b) holds a degree from a university recognized in Kenya; (c)has at least ten years’experience insenior management; and |

| | (d) mects the rcquirements ofleadership and integrity sct out in chapter six of the Constitution. (3)The chief executive officer shall hold office for a term of five years and is eligible for re-appointment for one further term. | |------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Functions of the chiefexecutive officer. | 16.The chief executive officer shall be the secretary to the Board and shall, subject to the direction of the Board (a)beresponsiblefor thedaytodaymanagementof the affairs of theBoard; (b) manage the funds, property and affairs of the Board; (c)beresponsiblefor themanagementof thestaffof the Board; (d) overseeandcoordinatetheimplementationofthe policies,programmes and objectivesof theBoard; (e)cause tobe prepared for the approval of theBoard- (i) the strategic plan and annual plan of the Board; and (ii)the annualbudget and audited accountsof the Board; and (f) perform such other duties as may be assigned by the Board. | | Removal of the chiefexecutive officer. | 17.Thechiefexecutiveofficer shallceasetoholdofficeif that person—- (a) resigns in writing, addressed to the Board; (b)is convicted of a criminal offence and sentenced to a term ofimprisonment of not less than sixmonths; (c)is found liable for grossmisconduct or abuse of office in contravention any written law; (d) is declared bankrupt; (e)is unable to perform the functions of office by reason of mental or physical infirmity; or (f)dies. |

| Staff of theBoard. | 18. (1) The Board may employ such officers, agents and staff as are necessary for the proper and efficient discharge of the functions of the Board under this Act and upon such terms and conditionsof service as theBoardmaydetermine. (2) The persons appointed under subsection (1) shall be on such terms and conditions as the Board may, in consultation with theSalaries andRemuneration Commissiondetermine. (3) The staff appointed under subsection (1) shall possess such knowledge and experience as shall be determined by the Board. | |------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Protectionfrom personal liability. | 19.Liability shall not attach to the Board or to any of its members, officers, agents or staff for loss or damage incurred by a person as a result of an act or omission done or made in good faith andwithoutnegligencein theperformanceorexerciseor the intended performance or exercise of anyduty or powerimposed by or conferred under thisAct. | | Commonsealof the Board. | 20.(1) The common seal of the Board shall be kept in the custodyof the chief executive officer or such other person as the Board may direct, and shall not be used except upon the order ofthe Board. (2) The seal oftheBoard shall be authenticated by thesignature of the chief executiveofficer andthe chairperson or aperson designated by theBoard for that purpose onbehalf ofthe chairperson. | | Signing authority. | 21.Allletters andinstrumentswritten or madeby or onbehalf of the Board, other than those required by law to be under seal, and all decisions of the Board, shall be signed under the hand of the chief executive officer or in the absence of the chief executive officer, a person authorized by theBoard. | | Meetings of Board. | 22.(l) The business and affairs of the Board shall be conducted in accordance with the provisions set out in the First Schedule. (2) Except as otherwise provided in the First Schedule, the Board mayregulate its own procedure. |

| | (3) The Board may invite any person to attend any of its meetings and toparticipate inits deliberations,but suchperson shall not be entitled tovote on any of the Board's decisions. | |-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | PARTIII-ROLEOFCOUNTYGOVERNMENTS | | Role of county governments. | 23.(1) Each county government shall (a) implement the National Government policy relating to the cottonsector; (b)regulateandpromotethedevelopmentof thecotton industry within the respective county; ()consider applications for the certificates,permits and licences; (d) coordinate the activities of persons, organisations and anyother associationswithin thecottonindustryin the respective county; and (e)facilitate access byplayers in the cotton industry to such resources and financial support as may be necessary to promote the development of the cotton industry in the respective county. (2)Each county executive committee member shall,in ensuring that the county government fulfils its obligations under subsection (1) - (a) maintain an up to date register of cotton growers, cottoncooperativesocieties andother associations as it considers appropriate in that county; (b) implement the policies, standards and strategies by the National Government and guidelines on corporate governance in cotton growers' institutions; (c)facilitate theproduction of cotton in therespective county by implementing and expanding the planting and replanting program of cotton in strategic areas identified as having the most potential and facilitate the rehabilitation and fertilization of existing cotton; (d)offerextensionserviceson cottonproduction and primary processing; |

| (e) promote the organisation of cottonf farmers cooperatives, associations, and organizations and provide them with credit and financing support; (f) provide training, extension service programs and disseminate information to cotton farmers,farm workers and processors relative toproduction technology,market tsystems,f farm workers, entrepreneurial and other technical skills and values, attitudeformation and socio-economic development strategies; (g) collaborate with relevant institutions so as to promote access to credit and other financial services; (h) formulateandadopt ageneral programof developmentgearedtowardsincreasedfarm productivity, through planting of suitable seeds of varieties, rehabilitation and fertilization of cotton, integrated cotton farming systems and product processing; ii inspect cotton farms,ginneries and value addition industrieslocated within their respective counties; G) in collaboration with law enforcement agencies, enhance securityin cottongrowing areas; (k) monitor and report incidences of pests and disease outbreaks to the Board and take action in collaboration withtheBoardandother relevant government agencies; (l) monitor and provide technicalsupportfor the eradication of noxious and invasive weeds and report any incidences to the Board; (m)establish cotton aggregation centres in collaboration withthenational government; (n) establish cotton collection centres and storage facilities; (o) put in place programs for provision of farm machinery; (p) provide affordable farm-inputs including quality seeds, fertilizer and other planting materials; and | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| | (q) carry out such other functions as may be conferred upon by anylaw. (3)The countyexecutive committee member responsible for finance may from time to time implement such measures, including incentives inorder to promotethedevelopmentof thecotton | |--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | County Cotton Development Committee. | industry. 24. (1)Eachcountyexecutivecommitteememberinthe cotton growing counties listed in theSecond Schedule shall establish a CottonDevelopment Committeefor thebettercarryingoutof the functionsunderthisAct. (2) The committee shall comprise representatives of the county government, growers, ginners and any other relevant stakeholderfrom thecountythat thecountyexecutive committee membershall deemfit. (3) Thefunctionof the committee shallbe to advise the county executive committeemember onmatters affecting thecotton industry. (4) The committee shall comprise not more than nine (9) members. (5) Therespective county executive committeemember shall appoint chairperson and members to the committee. (6) The term of service of the members shall be 3 years renewable once. (7) The respective county executive committee member shall prescribe, in regulations, the conduct of business and affairs of the committee. | | | PARTIV-REGULATORYPROVISIONS | | Registration. | 25. (1)Apersonor entityshall notcarryoutthebusiness of a cotton grower, cotton ginner, cotton cooperative society or cotton association unless such person is registered by the respective county government in which the business is to be undertaken. (2) Notwithstanding subsection (l), a grower who is a registeredmemberofacooperativesocietyorcottonassociation which is registered by a county government, shall be exempted from registration by that countygovernment. |

| | (3) Subsection (2) shall apply to a grower on condition that the cooperative society or cotton association is registered in the same county as thatwhich the grower is carrying outbusiness. (4) A registered cooperative society or cotton association shall- (a)submit a register of its members to the respective county government at the beginning of each calendar year; and (b) furnish the county government with information on any change of membership within 14 days of a change of membership. s registration of an applicant under subsection (1). (6) Each county government shall keep and maintain a register of persons registered under subsection (1). (7) A register under subsection (6), shall include (a) the name of the cotton grower, ginner, cooperative society or cotton association; (b) the location, size and parcel number of the land on which the business or that of its members is located; and (c)such other particulars as may be prescribed by county legislation. (8) A county government shall annually submit to the Board a copy of the register under subsection (6). (9)Any person may inspect the register and obtain a copy of an extract from the register, on payment of a prescribed fee. (10)Therespectivecountyexecutivecommitteemembers shall prescribe, in county legislation, the form and procedure for the | |---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Licensingof manufactureror processor. | 26. (1) A person shall not engage in the business of cotton ginning, spinning or value addition unless such person has applied for, and obtained, a licence in accordance with this Act. (2) A person who intends to engage in the business of cotton ginning, spinning or value addition shall submit an application in the formprescribed in countylegislationtothe countyexecutive committeemembertogetherwith— |

| (a)such documents and information as the county executive committeemembermayprescribe;and (b) the prescribed fees. (3)A countyexecutivecommitteemember shall consider an application within fourteen days, and may - (a)grant a licence unconditionally; (b) grant alicencesubject tosatisfyingsuchconditions asthe county may specify;or (c)with sufficient cause,refuse to issue or renew thelicence. (2)A decision made under subsection (3) on an application for alicenceshallbecommunicated tothe applicantby therespective county executive committee member,in writing within,fourteen days from the date of the decision. (5)Where the county executive committee member refuses to grant an application for a licence, the county executive committee member shall, in its notification under subsection (3), specify the reasonsfortherefusal. (6)Acountyexecutivecommitteemembershall,atleastthirty daysbeforegranting a newlicenceunder thisAct,publish a notice of theproposedgrantbynoticeintheGazetteand in such other mannerasthecountyexecutivecommitteemembermaydetermine. (7)The county executive committee member shall,in publishing the notice under subsection (6)— (a) specify the name or other particulars of the person or class of persons to whom the licence is to be granted; (b)state thepurpose and the datefor which thelicence is proposed to be issued; and (c) invite objections to the proposed grant of licence and direct that such objections belodged with the county executivecommitteememberwithinfourteen daysfrom the date ofthenotice. (8)Thecountyexecutivecommitteemembershallconsider anyobjectionsubmittedtoitundersubsection(6)andmaygrantthe | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| | licence appliedforsubjecttosuch terms and conditions as the county executive committee member shall consider appropriate. (9)A licence issued under this Act shall not be transferable. (10) A person who contravenes the provisions of subsection (1) commits an offence and is liable, on conviction,to a fine not exceeding one million shillings or twice the value of the cotton or cotton products, whichever is great, or to imprisonment for a term not exceeding two years or both. | |----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Refusal togrant a licence. | 27. (1) The county executive committee member may refuse to grant a licence where the application does not comply with the requirementsimposedunder this Act or prescribed under the specific county legislation. (2) The county executive committee member shall notify the applicant of the decision within fourteen days of such refusal in accordancewith section 25(3) and (4). | | Revocationofa licence. | 28. (1) The county executive committee member may revoke a licence under this Act if the licensee —— legislation; or (b) surrenders thelicence together with a notice setting out a request that thelicence be revoked. (2)The county executive committeemember shall not revoke thelicenceundersubsection(l)unlessthecommitteeexecutive member-- (a) issues to the person, a notice of at least fourteen days of theintentiontorevokethelicence; (b) issues to that person a compliance notice in the prescribed form; and a) grants the person, an opportunity to be heard on the revocation. | | Compliance notice. | 29. (1) A compliance notice issued under section 27(2) shall- |

| | (a) be in writing; (b)set out the areas of non-compliance and the steps required tobe undertaken in order to comply; and (c)specify the period within which the person is required tocomplywiththenotice. (2)The county executive committee member may,upon request bythelicensee and,where there aresufficientgroundsshown by the licensee, extend the period of compliance for such period as the committee member may consider necessary to ensure compliance. | |---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Effectof revocationofa licence. | 30. (1)Where a personwhoreceives a compliancenotice under section 28 fails to comply with such notice,the county executivecommitteemembershall- (a) revoke the licence of that person; (b) notify the person in writing of- (i)the revocation and the reasons thereof; and (ii) indicate the date of revocation. (2) For purposes of this Act, a cancellation of licence takes effect on the date on which the licence is cancelled by the county executivecommitteemember. | | Appeals. | 31. (1) An applicant who is aggrieved by the decision of the county executive committee member not to issue a licence under this Act may appeal to the county executive committee against the decision within thirty days of the receipt of the decision. (2) An applicant who is aggrieved by the decision of the county executive committee under subsection (l) may appeal to theHigh Court against thedecisionwithinfourteen days of receipt of the decision. |

| Designationof collection centres. | 32.(1) The county executive committee member shall designate such collection centres as the member shall,in consultation with the cotton growers in the county, determine. (2)The county executive committee member shall, in designating a collection centre,- (a) ensure that a centre meets such standards as may be prescribed by the Cabinet Secretary; and (b)takeinto account such codes ofpractice and standards as maybe applicable to cotton collection centres. | |---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Licensing of importers and exporters. | 33. (1)A person shall not import or export cotton,cotton seed or cotton by-products unless such person has applied for, and obtained a licence for the said import or export. (2)A person who intends toimport or export cotton, cottonseed or cottonby-products shall submit an application,in the prescribed, from to the Board. (3) The Board shall, at least thirty days before granting a new licence under this section, publish a notice of the proposed grant in the Gazette and in such othermanner as theBoard may determine. (4) The Board shall,in publishing the notice under subsection (2)— (a)specify the name or other particulars of the person or class of persons to whom the license is to be granted; (b) specify the purpose and the date on which the license is proposed to be issued; and (c)invite comments on the proposed grant of license and direct thatsuch commentsbe lodged with the Board within fourteen days from the date of the notice. (5)The Board shall consider any objection submitted to it under paragraph (c) and may grant or deny the license applied for subject to such terms and conditions as theBoard shall consider appropriate. (6) The Board shall consider an application within thirty days, and may -- |

| | (a) grant a licenceunconditionally; (b) grant a licence subject to satisfying such conditions as the Board may specify; or (c)with sufficient cause, refuse to issue or renew the licence. (6)A decision made under subsection (2)shall be communicated to the applicant,in writing within,seven days from the date of the decision. (7) The licence granted to an applicant under subsection (3) shall be in the prescribed form. (8)Alicenceissued under thissectionshall not betransferable. (9) Where the Board refuses to grant an application for a licence under subsection (4), the county executive committee member shall, specify the reasons for the refusal. (10)Apersonwhois dissatisfiedwith thedecisionoftheBoard may appeal to the CabinetSecretary. | |-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Renewalofa licence. | 34. (1) A licence issued under section32 shall bevalid for a. period of one year from the date it was issued. (2)A person who intends to renew a licence under subsection (1) shall submit an application in the prescribed form at least thirty days before the date of expiry of thelicence. (3)The procedure for the application ofa licence under section 32shall applytothe applicationfortherenewalofalicence | | Revocation ofa licence. | 35. (1) The Board may revoke a licence issued under section32orrenewedundersection33ifthelicensee- (a)fails to meet any condition prescribed under this Act; or (b)surrenders thelicence togetherwith a noticesettingout a requestthatthelicenceberevoked. (2) The Board shall not revoke the licence under subsection (1) unless the committee executive member-- |

| | (a)issues to thelicensee,a notice of at least fourteen days of theintentiontorevokethelicence; (b) issues to that person a compliance notice in the prescribed form; and b) grants the person, an opportunity to be heard on the revocation. | |---------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Compliance notice. | 36. (1) A compliance notice issued under section 34(2) shall—- (a) be in writing; (b)set out the areas of non-compliance and the steps required tobe undertaken in order to comply; and (c) specify the period within which the person is required tocomplywith thenotice. (2) The Board may, upon request by the licensee and, where there are sufficient grounds shown by the licensee,extend theperiod ofcomplianceforsuchperiod as theBoardmayconsidernecessary to ensure compliance. | | Effectof revocationofa licence. | 37. (1) Where a person who receives a notice under section34failstocomplywithsuch notice,theBoard shall — (a) revoke the licence of that person; (b) notify the person in writing of- (i)the revocation and the reasons thereof; and (ii) indicate the date of revocation. (2) For purposes of this Act, a cancellation of licence takes effect on the date onwhich the licence is cancelled by theBoard. | | | PARTV-FINANCIALPROVISIONS |

| Fundsof the Board.. | 38. (1) The funds oftheBoard shall consist of- (a)monies appropriated by Parliament for the purposes of the Board; | |-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Imposition of levy. | 39. The Cabinet Secretary may, in consultation with the Board, the county governments and the Cabinet Secretary responsible for the National Treasury,and by notice in the Gazette,impose a levy payable to the Board for the development of the cotton industry. | | Annual Estimates. | 40. (1)At1 least threemonthsbefore the commencement of each financialyear,theBoard shall causeto be preparedestimatesoftherevenueandexpenditureoftheBoardfor that year. (2)The annualestimates shall make provision for all estimatedexpenditureoftheBoardfor thefinancialyearconcerned. (3)The annual estimates prepared bythe Board under subsection (2) shall be submitted to the Cabinet Secretary for tabling in the National Assembly and the Senate. | | Accounts and Audit. | 41. (1) The Board shall cause to be kept such books of accounts and other books in relation thereto of all its undertakings, funds, activities and property as the Cabinet Secretary may from time totime approve andshall,within aperiod of three months after the end of the financial year, cause to be prepared, signed and forwarded totheAuditor-General (a)abalance sheet showingin detail the assets andliabilities oftheBoard;and (b)suchother statementsof accounts as theCabinet Secretarymay approve. |

| No.34 of2015. | (2)The accountsoftheBoardshallbeexamined,audited and reported upon annually by the Auditor-General in accordance with thePublicAuditAct. (3) The Board shall submit to the Auditor-General all books and accounts of the Board, together with all vouchers in support thereof, and all books, papers and writings in its possession or control relating thereto, and the Auditor-General shall be entitled to require from any member, officer, employee or agent of the Board such information and explanation ashemay considernecessaryfor the performance of his duties. | |------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Annual report and publication. | 42. (1) The Board shall, within a period of three months after the end of eachfinancial year or within suchlonger period as the Cabinet Secretary may approve, submit to the Cabinet Secretary a report of the operations of theBoard during such year,and theyearly balancesheet and such other statementsof account as theCabinet Secretary shall require, together with the Auditor-General's report. (2) The Board shall, if the Cabinet Secretary so requires, publish the report,balance sheet and statements submitted to him under subsection (1) in such manner as the Cabinet Secretary may specify. (3) The Cabinet Secretary shall submit to the National AssemblyandtheSenatethereports,balancesheetandstatements submitted under subsection (1),within a period of fourteen days of the receipt of the reports and statements. | | Financial year of the Board. | 43. The financial year oftheBoard shall be theperiod of twelve months ending on the thirtieth of June in each year. | | | PARTVI-MISCELLANEOUSPROVISIONS | | Incentives. | 44. The Cabinet Secretary responsible for finance may from time to time implement such measures, including tax incentives in order to promote the development of the cotton industry. | | Enactmentof county specific legislation. | 45. Each county government may enact county specific legislationsettingout- |

| | (a) the criteria for the registration of a cottongrowerwithin the respective county; (b) criteria for the issuance of a licence to an applicant within the respective county; (c) information required tobe submitted by an applicant for registration or issuance of alicence; (d)process of determination of an applicationforregistration or issuance of a licence; (e) the conditions for the issuance or renewalof a licence under this Act; (f)process of application for the renewal of licences and revocation of a licence issued to an applicant under this Act. (g) thegroundsfortherejectionofanapplicationor cancellation of a licence issued under this Act; and (h)process of applicationfortherenewal of registration and | |------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Penalties. | 46. (1) A person who commits an offence under this Act for which no penalty is provided is liable, on conviction, to a fine of notless than twentythousand shillings or afine not exceeding twice the value of the cotton or cotton by products or, to imprisonment for a term not exceedingsixmonths,or toboth. (2) Where an offence under this Act is committed by a partnership, company, association or co-operative society,every person who at the time when the offence was committed- (a) was director, partner or officer; (b)hadknowledgeor should havehadknowledgeof the commission of the offence; and (c) did not exercise due diligence to ensure compliance with this Act, commits an offence and is liablefor the offence as if they had committed the offence,unless they_prove that the act or omission |

| | constituting the offence took place without their knowledge,consent commission of the offence as they ought to have exercised having regard to the nature of their functions as director, partner or officer concerned as aforesaid and to all the circumstances. | |--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Regulations. | 47.( (1) The Cabinet Secretary may, in consultation with the Board and the Council of County Governors, make regulations generally for the effective carrying out the provisions of this Act. (2) Without prejudice to the generality of subsection (1), the Cabinet Secretary may make Regulations providing for the -- (a)nomination of the persons representing cotton farmers under section 7(1)(c); and (b) regulation of the processing, importation and exportation of cotton and cotton product. (c) conditions for the issuance of certificates, licenses and permits under this Act; (d) forms, certificates and manner of application for registration and licensing under this Act; (e)manner in which cotton may be produced, harvested, graded, processed, warehoused, packaged and traded; (f)charges for services rendered under this Act by theBoard; (g)forms and procedure for appeals under this Act; (h) establishment of a cotton price stabilization mechanism: i) contracts entered by growers and processors and; G)apportionment of any levy imposed under this |

| Publication of cottongrowing counties. | 48. (1) The Cabinet Secretary may on the advice of the Board review the list of counties that grow cotton under the Second Schedule of this Act. (2) The Cabinet Secretary shall publish annually the list under subsection(l)in theGazette. | |------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Consequential amendment. | 49. Part 1of the First Schedule to the Crops Act is amended bydeleting thefollowingitem—- Cotton.... ....Gossypium app. | | | PARTVII-TRANSITIONALPROVISIONS. | | Interpretation. | 50. In this Part-- “appointed day” means the day this Act comes into force | | Rights and obligations. | 51. On the appointed day, all rights, obligations and contracts which, immediately before the coming into operation of this Act, were vested in or imposed on the Agriculture and Food Authority with respect to the cotton sector shall by virtue of this section,be deemed tobe the rights,obligations and contracts of theBoard as the case maybe. | | Assets. | 52. On the appointed day, all funds, assets, and other property, moveable and immovable which were immediately before the appointed day vested in Agriculture and Food Authority for the carrying out of functions relating to cotton, shall vest in theBoard. | | Legal proceedings. | 53. On the appointed day, all actions, suits or legal proceedings pending by or against the Agriculture and Food Authorityinrelationtothecottonsectorshallbecarriedon or prosecuted by or against the Board, and no action, suit or legal proceedingsshallin anymannerabateorbeprejudicially affected by the enactment ofthisAct. |

| Reference to written laws. | 54.Any reference to the Agriculture and Food Authority in any written law or in any contract, document or instrument of whatever nature, in relation to cotton, shall, on the appointed day, be read and construed as a reference to the Board. | |------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Previous authorisations. | 55. All directions, orders and authorisations given, or licenses or permits issued, or registrations made by the Agriculture and Food Authority in relation to cotton, and subsisting or valid immediately before the appointed day, shall be deemed to have been given, issued or made by the Authority as the case may be,under thisAct. | | Staff. | 56.Any person who, at the commencement ofthis Act, is a member of staff of the Agriculture and Food Authority dealing with the cotton sector shall, on the appointed day,become a memberofstaffoftheBoard. |

| | FIRSTSCHEDULE (s. 22(2)) | |-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | PROVISIONSRELATINGTOTHECONDUCTOF BUSINESSANDAFFAIRSOFTHEBOARD | | Meetings. | 1. (1) The Board shall have at least ten meetings in cvery financialyearandnot more thantwomonthsshall elapsebetweenthe date of one meeting and the date of the next meeting. (2)Meetings shall be convenedby the chief executiveofficer in consultationwith the chairperson and shallbeheld at such times and such places as the chairperson shall determine. (3) The respective Chairpersons shall preside over all meetings and in the absence of the Chairperson, by a person elected by the Board as the casemaybe at themeetingfor that purpose. (4) The Chairperson may at any time convene a special meeting of theBoard as the case maybe,and shall do so within one month of the receipt by the Chairperson of a written request signed by at least five other members. (5) Unless half of the members of the Board otherwise agree, at least seven days’notice of a meeting shall be given to every member of the Board as the case may be. | | Quorum. | 2.The quorum of a meeting of the Board is half of the total number of members. | | Voting. | 3.A decision of theBoard shall bebya majorityof the members present and voting and, in the case of an equality of votes; the person presiding at the meeting shall have a second or casting vote. | | Minutes. | 4. Minutes of all meetings shall be kept and entered in records kept for that purpose. | | Disclosure of interest. | 5. (1) If a person is present at a meeting of the Board or respective committee at which any matter is the subject of consideration and in which matter that person is directly or indirectly interested in a private capacity,that person shall as soon as is practicable after thecommencementof themeeting,declare such interest. (2)The person makingthe disclosure of interest under subsection (1)shall not,unless theBoard or committee otherwise |

| directs, take part in any consideration or discussion of, or vote on any question touching on the matter. (3)A disclosure of interest made under subsection (1) shall be recorded in the minutes of the meeting at which it is made. (4)A person who contravenes subsection(1)commits an offence and upon conviction is liable to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding seven years or toboth such fine and imprisonment. (5) A member or employee of theBoard shall not transact any business or tradewith theBoard. | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

SECONDSCHEDULE COUNTIES

COASTREGION

Kwale County

Kilifi County

Lamu County

Taita-Taveta County

Tana River County

CENTRALREGION

Kiambu

Kirinyaga

Muranga

RIFTVALLEYREGION

Baringo

Elgeyo Marakwet

Kajiado-South East

Kericho

Turkana

West Pokot

EASTERNREGION

Embu

Isiolo

Kitui

Machakos

Makueni

Marsabit

Tharaka Nithi

Meru

(s 48)

WESTERNREGION

Bungoma

Busia

Kakamega

NYANZAREGION

HomaBay

Kisumu

Migori

Siaya I certify that this printed impression is a true copyof theBill aspassed by the Senate on Tuesday,1st August, 2023.

ClerkoftheSenate

Endorsedforpresentation to theNational Assemblyin accordancewith theprovisions of standing order 161 of theSenateStanding Orders.

Speakerof theSenate