(4) The Board may form committees to carry out specific functions and without prejudice to its general power to do so, the Board shall form the following committees:

1. Sugar Development Fund committee which shall consist of five members- three grower representatives and two miller representative. The chairman shall be elected by the members.
2. Marketing committee which shall consist of five members- three millers and two growers. The Chairman shall be elected by the members.
3. Sugar cane pricing committee which shall consist of three grower representatives and three miller representatives

2. Section 5(1) of the Bill is amended by-

a) deleting all the words in subsection (a) and substituting therefor the following words ‘ a non-executive chairman appointed by the minister on the recommendation of the members from among the members of the Board representing growers’

b) in subsection (b) by deleting the word ‘Four’ and substituting therefor the word ‘Seven’ and inserting the following words after the word ‘minister’ ‘of whom four shall be from Western Province and three from Nyanza Provinces’

c) deleting subsection (e)

4. deleting subsection (f)
5. renaming subsection (g) subsection (e)

3 The First Schedule is amended-

1. in section 1 the first paragraph of the section by deleting the words ‘ the Chairman or’
2. in section 1 subsection (b) by deleting the word ‘ minister’ and replacing it with the words ‘ annual General Meeting or special general meeting’
3. in section 4 by deleting the word ‘ seven’ and replacing it with the word ‘ eight’

4. The Second Schedule is amended in Part 2 section 3(b) by inserting the words ‘ and co-operatives’ immediately after the word ‘companies’

5. Addition under Role of Kenya Sugar Board (Sec. 3(b))

After outgrowers company insert "and cooperative societies"

2. HEADQUARTERS

The bill is amended by inserting the following new section-

3A The Headquarters of the board shall be in Kisumu.

3.0 SUGAR ARBITRATION TRIBUNAL

1.Section 29 of the Bill is amended

1. in subsection (1) by inserting ‘(a)’ between ‘(1)’ and the word ‘There’ and creating the following new section:

(b) The tribunal with arbitrate on disputes referred to it by Zonal Committees.

2. in subsection (2)(b) by deleting the words ‘ all of who shall be appointed by the minister in consultation with the Attorney-General’ and replacing them with the following words ‘ all of whom shall be appointed by the Minister upon nomination by the Board (1), growers(1) and millers (1).The Board nominated person shall be the chair’ and inserting the words ‘of integrity’ between the words ‘persons’ and ‘with’ in the first line of the first paragraph.

c) in subsection (3) by deleting the words ‘ not exceeding five years’ at the end of the section and replacing it with the words ‘ of three years’

1. by adding the following new subsections-

(6) A member of the tribunal shall not be removed without the approval of the general meeting.

(7) (a) A copy of any determination or order of the tribunal, certified by the chairman of the tribunal or by an officer authorised by him, to be a true copy, may be filed in a court of the first class by any party to the proceedings which gave rise to it, and thereafter, if notice of the filing has been given to the tribunal by the party filing it, the determination or order may be enforced as a decree of the court.

(b) Where a determination or order has been filed and served on a tribunal under subsection (a), the tribunal shall transmit to the court its record of the proceedings, and the record shall be filed by the court with the certified copy of the determination or order.

(8) (a)The Chief justice may make rules prescribing the procedure for enforcing determinations or orders of the tribunal under subsection (7), prescribing the time within which an appeal to the high court may be made and the procedure to be followed and the fees to be paid on such an Appeal.

(b) where jurisdiction or power to deal with any matter is conferred by this Act on the tribunal , no proceedings with respect to that matter shall be taken in any court except by way of appeal under subsection (9)

(9) The decisions of the tribunal on matters of fact shall be final. An Appeal on matters of law may be made in the High Court.

The Bill is amended in the Third Schedule :

1. in subsection 2(1) by deleting the words ‘other than the Chairman’
2. in subsection 2(2) by deleting the word ‘Minister’ and replacing it with the word ‘Board’
3. in subsection 2(3) by deleting the word ‘ Minister’ and replacing it with word ‘Board’
4. in section 3 by deleting the word ‘Minister’ wherever it occurs and inserting the word ‘Board’ between the words ‘the’ and ‘and’ and inserting the words ‘ , Board in consultation with Minister ,’ between the words ‘the’ and ‘may’
5. in section 4 by inserting the words ‘in consultation with the Board’ after the word ‘Minister’
6. in section 5 by deleting the word ‘Minister’ and replacing it with the words ‘ Board in consultation with the Minister,’

4.0 ZONAL COMMITTEES

The Bill is amended by the insertion of the following new provisions-

PART 111A – ESTABLISHMENT, POWERS AND FUNCTIONS OF ZONAL COMMITTEES

1. There is established a zonal committee in each of the factories to be known as Factory Zonal Committee.
2. The zonal committee shall consist of-

1. six grower representatives elected by growers through the facilitation of KESGA
2. six miller representatives elected by millers
3. a representative of the Kenya Sugar Board

1. The object and purpose for which the Factory Zonal Committee is established is to-

1. Provide a forum for regular consultations between the farmers, millers and the Kenya sugar Board
2. Discuss all matters affecting the sugar industry in the zone.
3. Review and monitor operations of the factory
4. Discuss and develop benchmarks for costs of production – farm inputs and transport
5. Resolve conflicts between the parties in the industry
6. Refer disputes which it cannot solve to the Sugar Arbitration Tribunal
7. Subject to the provisions of this act do all things that will promote good management of sugar industry at the zonal level.

1. The Zonal Committee shall meet at least once every month and the quorum in such meetings shall be eight.
2. Save as provided in this Part, the provisions providing for the conduct of the business of the Kenya Sugar Board shall apply mutatis mutandis to the conduct of the business of the Zonal Committee.
3. (a) Not withstanding any other provisions of this Act, the Zonal Committee shall be provided with relevant information upon request by all parties in the Sugar industry.

1. Without prejudice to the generality of subsection(a) such information shall include:

the costs of cane production charged by the out-growers to growers, minutes of pricing committee meetings, annual reports and accounts of KSB/ Sugar Development Fund and Annual reports and accounts of Kenya Sugar Research Foundation.

2. Any person who refuses or neglects to provide information within a reasonable time upon request by the Zonal committee commits an offence.

1. There is established a Factory Board in each non-privatised factory
2. The Factory Board shall consist of:

1. two growers elected by farmers
2. a person nominated by Kenya Sugar Board
3. Three persons appointed by the minister
4. Two persons with managerial expertise appointed by the Kenya Association of Manufacturers
5. The Managing Director of the Factory who shall be an ex-official member and the secretary to the Board.

1. The Factory Board shall-

1. be responsible for policy formulation for the factory
2. ensure the factory carries out its roles set out in the second schedule section 6
3. Hire, remove and discipline the Chief Executive of the factory.

1. (1) The conduct and regulation of the affairs of the Factory Board shall be as provided in the Fifth schedule.

(2) Except as provided for in the Fifth Schedule, the Factory Board shall regulate its procedure and the procedure of its committees.

2. The Factory Board may appoint such officers and other staff as are necessary for the proper discharge of its functions under this Act, upon such terms and conditions of service as the Factory Board may determine
3. No matter or thing done by a member of the Factory Board, or any officer, employee or agent thereof shall, if done bona fide for executing the functions, powers or duties of the Factory Board render the member , officer, employee or agent personally liable to any action , claim or demand whatsoever.

7 the Factory board shall meet at least once in an every two months and the quorum for Factory Board meetings shall be five which shall include at least one member from the different parties represented in the Factory Board.

8. Save as otherwise provided , the provisions providing for the conduct of the business of the Kenya Sugar Board shall apply mutatis Mutandis to the conduct of the business of the Factory board

1. in subsection 4 by deleting the word ‘ Board’ and replacing it with the words ‘ Sugar Development Fund which shall be maintained and managed by the Sugar Development Fund Committee’
2. in subsection 6 by deleting the word ‘ Board’ at the beginning of the subsection and replacing it with the words ‘ the Sugar Development Committee’ and deleting the words ‘ the furtherance of the objects of the Board’ and replacing them with the words ‘ – Cane development, Factory rehabilitation, Research, Development of irrigation infrastructure, Administrative costs of the Kenya sugar Board, Road development, and to provide credit to transporters’.

0. KENYA SUGAR RESEARCH FOUNDATION

The bill is amended in Section 6 by adding a new subsection which reads as follows:

‘(j) direct the Kenya Sugar Research Foundation operations on matters affecting the industry.

8.0 ANNUAL GENERAL MEETING

Section 24 of the Bill is amended :

1. in subsection (1) by renaming it ‘ (a)’ and introducing the following new provisions immediately after it- ‘ (b) The Annual General meeting shall consist of:

(i) fifteen grower representatives from each zone elected by farmers

(ii) Six miller representatives from each factory

(iii) The Kenya Sugar Board

(c)The quorum of the Annual General Meeting shall be half of the growers and half of the millers. The chairperson of the annual general meeting shall be elected by the meeting at the beginning of the meeting through the facilitation of the Kenya Sugar Board.

(d) in any general meeting where quorum is not achieved ,the meeting shall be adjourned for thirty days and if quorum is not achieved in the reconvened meeting ,the meeting shall proceed and quorum shall be deemed to be constituted by those present.

(e) without prejudice to the generality of subsection (1) (a) , the annual general meeting shall have powers to :

(i) adopt or amend the rules made by the Board under section 24 (3)

(ii) receive reports of the Kenya Sugar Arbitration Tribunal and authorise the removal of members of the Tribunal when the need arises on the recommendations of the Board

(iii) remove members of the Board when the need arises within the provisions of this Act and in accordance with the First schedule.

(iv) to appoint an independent auditor to investigate and report on the accounts of the Kenya Sugar Development Fund , the Kenya Sugar Research Foundation and the Kenya Sugar Board.

2. in subsection (2) by inserting the following proviso after the subsection:

Provide always that members of the Board (both growers and millers ) making up to twenty- five percentage thereof may in writing request the Board to convene a special general meeting and the Board shall within thirty days convene the said meeting.

9.0 CANE PRICING POLICY

The second schedule is amended in part 3 section 8 by-

1. inserting ‘(a) immediately after ‘8(1)’ and introducing the following new subsection :

8(1) (b) the Board shall ensure the Sugar Pricing Committee meets regularly at intervals of not more than four months.

2. deleting subsections 2, 3, 4 and 5 and replacing them with the following new provisions –

8(2) The price of cane shall be based on weight and the bye- products of cane processing shall be factored into the price.

8(3) transporters of cane shall ensure there is not spillage during transporting of cane by using proper vehicles and properly securing the cane. Where spillage occurs the farmer shall be compensated for the same and the Zonal Committee may determine the level or amount of compensation.

10.0 DEBIT BALANCE

The Second Schedule is amended in Part 5 section 13 by deleting subsection (h) (iv).

11. BAD CANE VARIETY

The Second Schedule is amended in Part 5 section 12 by inserting the following proviso to subsection (a) –

provided that the grower shall be compensated for all losses incurred due to poor cane variety by the supplier of the variety.

12 MARKETING

Section 26 is amended by introducing the following new subsection

(3) The Marketing Committee of the Kenya Sugar Board shall :

1. be responsible for formulating Sugar importation policies
2. Advise the Government on international tariffs and levies
3. Manage the exportation of sugar under international agreements
4. Coordinate the sugar contracts and assign the returns to the beneficiaries