Demystifying the proposed DAIRY INDUSTRY (REGISTRATION AND LICENCING) REGULATIONS, 2018

The new dairy regulations have brought quite a buzz in social media; in this article we shall spell out how these new regulations look like and what they probably imply for a dairy farmer.

First, the proposed law requires that anybody who intends to operate a dairy produce plant, machinery or equipment or use any premises, facility or structure for purposes of producing, processing, packaging, storing, distributing or selling there any dairy produce or carrying there any activity connected to all this, shall register such plant, machinery, equipment, premises, facility or structure and obtain a certificate of registration thereof from the Board as is specified under these regulations.

According to this definition, all players in the dairy value chain starting from the farmer to the consumer are bound by this regulation. Primary producers are defined as a person who produces milk for sale.

Registration charges are as follows and shall be payable to the Kenya dairy board:

• Application for registration ………………………Kshs 1,000
• Producer registration fee ………………………….Kshs 1,000
• Milk bar registration fee ………………………….Kshs 1,500
• Cottage industry registration fee……………Kshs 2,000
• Mini Dairy registration fee…………………Kshs 2,000
• Processor registration ……………………………..Kshs 5,000
• Cooling plant registration fee (below 5,000 litres)………………………….Kshs 1,000
• Cooling plant registration fee (Above 5,000 litres)………………………. Kshs.2,000
• Distributors of Dairy Produce……………….Kshs 5,000
• Dairy Equipment, Materials and Additives …Kshs 5,000
• Exporter and Importers of Dairy Supplies…..Kshs 5,000

For primary producers to be registered, they must fulfill the following laboratory requirements; Have procedures for the collection and handling of samples, the selection and preparation of apparatus and instrumental analytical equipment, media and reagents and the analytical procedures, incubation, readings, recording and reporting of results shall be in accordance with the methods provided in the relevant Kenya standards.

Failure to register shall attract a fine of Ksh 20,000 or one month imprisonment.

An operation license shall also be required for;

• Every person registered under the Regulation for purposes of engaging in dairy business and every other dairy produce dealer or operator shall apply for and obtain a licence from the Board before engaging in any dairy produce business or operation.
• No licence shall be issued without a valid registration from the Board.
• Exporters, importers and dairy equipment suppliers shall apply for and obtain licence from the Board before engaging in business or operation
• Every milk producer, milk trader, milk transporter, milk collection center operator, milk processor is required to have a licence before operating.
• The licence shall be issued by the Board or its authorized agent and shall be renewed after every twelve months from the date of last issue and subject to valid registration by the Board.

Any person who operates without a license commits an offence and is liable to fine of not more thanKsh 500,000 or an imprisonment of twelve months or to both.

All dairy managers shall be licensed by the board. Therefore, it will be illegal to employ an unregistered person to handle dairy related tasks.

What are your thoughts about this proposed regulation? The board is seeking stakeholder´s feedback on this regulations through the form here.