Kakamega County Agricultural Produce Cess Act, 2019 (No. 4 of 2019)

NATIONAL COUNCIL 1.01.< LAW REPORTING LIBRARY SPECIAL ISSUE Kenya Gazette Supplement No.6 (Kakamega County Acts No. 4) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT KAKAMEGA COUNTY ACTS, 2019 NAIROBI, 4th May, 2019 CONTENT Act— PAGE The Kakamega County Agricultural Produce Cess Act, 2019 1 NATIONAL COUNCIL FOR LAW REPORTINGi 7- 4 Elk, D 0 & DEC 2019 P Of..) 10443 - Orl 110 NAIROBI, KENYA TEL: 2119231 FAX: 2712594 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI THE KAKAMEGA COUNTY AGRICULTURAL PRODUCE CESS ACT No. 4 of 2019 Date of Assent: 21st December, 2018 Date of Commencement: See Section 1 ARRANGEMENT OF SECTIONS Section PART I —PRELIMINARY 1—Short title and commencement 2—Interpretation. 3—Object and Purpose of the Act. PART II — AGRICULTURAL PRODUCE CESSES 4—Agricultural produce cess. 5—Declaration of scheduled produce. PART III — PAYMENT OF CESS 6—Payment of cess. 7—Obligation to keep records. 8—Payment of cess on agricultural produce on transit. 9—Agreement in relation to revenue collection. 10—Offences by an authorized officer. 11—Variation of cess. 12—Regulations. 13—Personal liability. 14—Saving clause. 15—Saving of rules and Orders under the by-laws. 16—Prosecution of matters under this Act. SCHEDULES First Schedule — Scheduled Produce. Second Schedule — Scheduled Agricultural Produce Cesses. 2 No. 4 Kakamega County Agricultural Produce Cess 2019 THE KAKAMEGA COUNTY AGRICULTURAL PRODUCE CESS ACT, 2019 AN ACT of the County Assembly of Kakamega County to provide for the imposition of Cess on agricultural produce within the County and for connected purposes. ENACTED by the County Assembly of Kakamega County as follows— PART I —PRELIMINARY 1. This Act may be cited as the Kakamega County Agricultural Produce Cess Act, 2019 and shall come into operation upon publication. 2. In this Act, unless the context otherwise requires Interpretation "Agricultural producer!" means a producer of agricultural produce and includes any marketing organization acting on behalf of producers; "Authorized officer" means any person prescribed and authorized in writing by the Executive Committee Member to act as an authorised officer under this Act; "County Government" means the County Government of Kakamega; "Executive Committee Member" means the Executive Committee Member responsible for agriculture; "Processing plant" means premises where agricultural produce is processed mainly by machines; "Produce cess" means charges imposed under this Act and payable to the county government; "Scheduled produce" means any produce for the time being specified in the First Schedule; 3. The object and purpose of this Act is to impose Object of the Act. charges on agricultural produce grown in the county pursuant to the provisions of Article 209 (3) of the Constitution of Kenya, 2010. PART II—AGRICULTURAL PRODUCE CESSES agricultural produce within the County in accordance with 4. (1) The County Government shall collect cess on produce cesses Agricultural the Second Schedule of this Act. Short title and commencement 3 2019 Kakamega County Agricultural Produce Cess (2) The Executive Committee Member may impose cess on any other agricultural produce not already provided for under the Second Schedule of this Act by Regulations, and may make such incidental provisions as are necessary or expedient for the collection of the cess by the receiver of revenue. (3) The proceeds of the cess collected will be used for infrastructural development of the area collected. 5. The Executive Committee Member may, by notice in the Gazette, declare any agricultural produce to be a scheduled produce for purposes of this Act. PART III— PAYMENT OF CESS 6. The cess imposed under this Act shall be payable by the agricultural producer to the county government through the processing plant at the time when the plant takes delivery of the produce or product of the produce. (2) Any person whether within or outside the county who buys or markets on behalf of an agricultural producer, agricultural produce on which cess is payable and on which no cess has been paid shall deduct from the money payable to the agricultural producer an amount equal to the cess payable on the produce and remit the amount to the county government. (3) The processing plant shall ensure that all the amounts deducted as cess are remitted to the County Government by the 20th day of the next month. (4) The County Government may deploy inspectors to processing plants and barriers to ensure compliance with provisions of this Act. (5) In any proceedings it shall be presumed, where agricultural produce on which cess is brought in regard to failure to pay or remit cess, that no cess has been paid on that produce until the contrary is proved. (6) Any processing plant which fails to comply with the provisions of sub-section (3) commits an offence and shall be liable on conviction to a fine not exceeding one million shillings. (7) Notwithstanding the provisions of sub-section (6) the County Government may impose a penalty for late remittance of the cess due and owing. No. 4 Declaration of scheduled produce Payment of cess 4 No. 4 Kakamega County Agricultural Produce Cess (8) The County government shall recover cess remittable by the plant whether or not the plant collected the cess from the agricultural producer and the cess owing shall be a civil debt recoverable summarily. 7. (1) The processing plant shall make and keep such up to datebooks, accounts and records as are reasonably necessary to determine the mass of agricultural produce supplied to it and cess deductions made thereof for a period of at least seven years after the completion of the transactions to which they relate. (2) The County Government may by notice in writing given to the processing plant, direct the plant as to the books, accounts and records the processing plant is required to make and keep. (3) An authorized officer shall be allowed access, within working hours to the records referred to in subsection (1). (4) Any processing plant which fails to comply with the requirements of this section commits an offence and shall on conviction be liable to a fine not exceeding Three million shillings. 8. The authorized officer shall ensure that cess on agricultural produce from the county on transit to other counties is collected at barriers set up at the points of entry as per Regulations made by the Executive Committee Member and shall ensure that all the amounts collected are accounted for and remitted to the County government. PART IV— MISCELLANEOUS 9. The County government may enter into an agreement authorizing a person or entity to collect cess payable to the county government on such terms and conditions as are specified in the agreement. 10. An authorized officer having a duty to perform under this Act and who— (a) interferes with any process or person under this Act, so as to defeat the provisions, requirements or purposes of this Act; (b) where required under this Act to do anything, or to give effect to the provisions of this Act, fails to do such thing; 2019 Obligation to keep records Payment of cess on agricultural produce on transit Agreement in relation to revenue collection Offences by an authorized officer. 5 2019 Kakamega County Agricultural Produce Cess (c) without reasonable cause omits to do something in breach of his or her duty under this Act; (d) willfully contravenes the provisions of this Act to give undue advantage or favor to another person; (e) fails to prevent or report to the County Government or any other relevant authority, the commission of an offence committed under this Act, commits an offence and shall be liable on conviction, to a fine not exceeding two hundred thousand shillings or to imprisonment for a term not exceeding one year, or both. 11. (1) The Executive Committee Member may from time to time vary cess payable under this Act. (2) The variation of cess shall be in writing and published in the Gazette. 12. The Executive Committee Member may make Regulations for the better carrying out of the purposes and provisions of this Act. 13. Neither the Executive Committee Member nor any other person shall be personally liable to any action or proceedings for or in respect of any act or thing done or omitted to be done in good faith in the performance or exercise or intended performance or exercise of any duty or power imposed or conferred by or under this Act. 14. Nothing contained in this Act or any rules or regulations made pursuant thereto shall prejudice or affect collection of cess under the previous by-laws of the defunct local authority of the county, and where anything in this Act or any rule is inconsistent with any such provision of the by-law, the provisions of this Act shall prevail. 15. All directions, resolutions, orders and authorizations given by laws made and licences, receipts or permits issued by local authorities for payment of cess within the county under the Local Governments Act (now repealed) and subsisting or valid immediately before the commencement of this Act shall be deemed to have been given, issued or made under this Act. 16. The county government shall liaise with the Director of Public Prosecutions for the appointment of a special prosecutor for purposes of offences committed under this Act. No. 4 Variation of cess Regulations Personal liability Saving Clause Saving of rules and orders under the bylaws. Prosecution of matters under this Act. 6 No. 4 Kakamega County Agricultural Produce Cess 2019 SCHEDULES FIRST SCHEDULE (Section 2) SCHEDULED PRODUCE 1. Bananas 2. Sugarcane 3. Beans 4. Carrots 5. Cassava 6. Coffee 7. Tomatoes 8. Cucumber 9. Egg plants 10. Water melon 11. Avocado 12. Oranges 13. Passion fruits 14. Pumpkin 15. Lemons 16. Ground nuts 17. Maize 18. Mangoes 19. Milk 20. Onions 21. Pawpaw 22. Peas 23. Potatoes 24. Processed fresh milk 7 2019 Kakamega County Agricultural Produce Cess No. 4 25. Sugar cane 26. Sweet potatoes 27. Tea leaves 28. Eggs 29. Fish 30. Soya beans 31. Trees and tree products 32. Sorghum 33. Vegetables including cucumber, capsicum and amaranths species 34. Animals and animal products SECOND SCHEDULE (Section 4 (1)) SCHEDULED AGRICULTURAL PRODUCE CESSES ITEMS WITHIN KAKAMEGA Coffee Cess in percentage of market price: 1% Tea Cess in percentage of market Price: 1% Maize Cess in percentage of market price: 1% Milk Cess in percentage of market price: 1% Fish cess in percentage of a market price: 1% Sugarcane cess in percentage of a market price: 1%