• Coffee Seedlings at Nursery

  • Sugar Plantation

  • Ripe Coffee

  • Coffee Drying Process

  • Sugar cane Harvest

  • Sugar Bags

Commodities Fund: Background

The Agriculture Sector Reforms began in 2003 with the formulation of the Economic Recovery Strategy for Wealth and Employment Creation (ERS) and the Strategy for Revitalization of Agriculture (SRA).The Sector reforms were aimed at reviewing, updating and harmonizing the legal framework to rationalize multiple legislation and regulations governing the sector.

The review and consolidation of over 130 laws (which existed in the agricultural sector in Kenya, including the Coffee Act, 2001 through which established Coffee Development Fund, and Sugar Act, 2001 that established Kenya Sugar Board, which administered Sugar Development Levy) culminated in the enactment of the Agriculture, Fisheries and Food Authority Act, 2013, the Crops Act 2013, and the Kenya Agricultural and Livestock Research Act, 2013.

The AFFA Act consolidates the laws on the regulation and promotion of Agriculture and makes provision for the respective roles of the national and county governments in agriculture and related matters, in line with the provisions of Part 1 and Part 2 of section 29 of Fourth Schedule to the Constitution of Kenya.

The Act also makes provisions for the establishment of the Agriculture, Fisheries and Food Authority, which is the successor to the following eight institutions earlier established under the laws repealed by the Crops Act, 2013.

i.            Kenya Sugar Board

ii.           Tea Board of Kenya

   iii.          Coffee Board of Kenya

   iv.          Horticultural Crops Development Authority

v.           Pyrethrum Board of Kenya

   vi.          Sisal Board of Kenya

vii.         Cotton Development Authority

viii.        Kenya Coconut Development Authority

Among other mandates of this Authority (AFFA) is to administer Crops Act, 2013, which establishes the Commodities Fund.

Commodities Fund  (CoF)

Commodities Fund (CoF) is a fund established under Crops Act, 2013, article 9 (1) to provide  sustainable and affordable credit and advances to farmers for  farm improvement;  farm inputs; farming operations; price stabilization; and any other lawful purpose approved by the Authority.

The Fund is the successor of Coffee Development Fund and Sugar Development Fund (Which was part of Kenya Sugar Board. Coffee development Fund and Kenya Sugar Board were among other Agriculture Sector regulatory institutions that ceased to be, following coming to effect of Crops Act 2013 on 1st August 2014.