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NEW REGULATIONS

You require contract to buy or sell raw milk

Defaulters face Sh10,000 fine or two years in jail

In Summary

• In case of a dispute, the parties will be referred to the (Dairy) Board before resorting to other dispute resolution mechanisms.

• The regulations are meant to ensure fair trade and protection of the investment interests of both buyers and sellers.

You will require a contract to buy or sell raw milk, according to the new Dairy Industry Act and Dairy Industry (Raw Milk Sales Contract) regulations.

Failure to comply will cost the culprit Sh10,000 fine or in default two years in jail.

“These regulations shall apply in respect to the sale of raw milk entered into between a buyer and a seller.” 

In case of a dispute, the parties will be referred to the (Dairy) Board before resorting to other dispute resolution mechanisms.

The regulations are intended to ensure fair trade in the sale of raw milk and to protect the investment interests of both buyers and sellers of raw milk.

“A person who contravenes any provisions of these regulations commits an offence and shall be liable on conviction to a fine not exceeding ten thousand shillings or imprisonment for a term not exceeding two years or both,” the law states.

All raw milk sale contracts must have the details of the parties, their duties and responsibilities, price per kilogramme, quantities, oversupply or undersupply terms, quality specifications, testing and rejection terms, transfer of ownership and time of collection or delivery.

Other conditions are the frequency of collection or delivery, contractual period, terms of payment, confidentiality, waivers and amendment terms, terms of termination of contract, indemnification and insurance, sanctions for failure to honour contractual obligations, notices and demands, force majeure and the dispute resolution mechanism.

“The Board may from time to time inspect any contracts made between the supplier and the buyer as regards the sale of dairy produce to ascertain compliance to the requirement of this regulation,” the regulations state.