The Agricultural Development Fund Act

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CHAPTER 199
THE AGRICULTURAL DEVELOPMENT FUND ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Interpretation.
part ii
THE AGRICULTURAL DEVELOPMENT FUND
3. Establishment of Fund.
4. Purpose of Fund.
5. Resources of Fund.
6. Management of Fund.
7. Accounts and audit.
8. Power of Minister to reallocate moneys in Fund.
9. Application.

urpose of Fund.
5. Resources of Fund.
6. Management of Fund.
7. Accounts and audit.
8. Power of Minister to reallocate moneys in Fund.
9. Application.

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PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Agricultural Development Fund
Act. 2. In this Act, unless the context otherwise requires-
“Co-operative and Rural Development Bank” means the
Bank established under the Co-operative and Rural
Development Bank (Repeal and Transitional Provisions)
Act;
“co-operative society” means a co-operative society
registered under the Co-operative Societies Act;
“District Development Corporation” means a District
Development Corporation established under the District
Development Corporations Act;
“foreign Government” includes any agency of that
Government;
“Fund” means the Agricultural Development Fund
established under section 3;
“international organisation” includes specialised agencies of
the United Nations, aid foundations, or other multilateral
aid institutions;
“Minister” means the Minister responsible for finance. Short title
Interpretation
Cap. 88
Cap. 211
Cap.

tions, or other multilateral
aid institutions;
“Minister” means the Minister responsible for finance. Short title
Interpretation
Cap. 88
Cap. 211
Cap.

382
CHAPTER 199
THE AGRICULTURAL DEVELOPMENT FUND ACT
An Act to provide for the establishment of the Agricultural Development
Fund and for the management of that Fund. [1st July, 1984]
[s. 1]
Act. No. 12 of 1984

to provide for the establishment of the Agricultural Development
Fund and for the management of that Fund. [1st July, 1984]
[s. 1]
Act. No. 12 of 1984

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THE AGRICULTURAL DEVELOPMENT FUND ACT [CAP. 199 R.E. 2023]
PART II
THE AGRICULTURAL DEVELOPMENT FUND
3. There is hereby established a fund to be known as the
Agricultural Development Fund. 4.

P. 199 R.E. 2023]
PART II
THE AGRICULTURAL DEVELOPMENT FUND
3. There is hereby established a fund to be known as the
Agricultural Development Fund. 4.

The purposes for which the Fund is established are-
(a) financing by way of loan or equity of fixed investment
by parastatal organisations, District Development
Corporations, co-operative societies or villages
engaged in the production processing or marketing of
food products;
(b) financing by way of loan or grant-
(i) the procurement or purchase of agricultural input
by organisations engaged in the production,
processing or marketing of food produce and
other related products;
(ii) the procurement or purchase of equipment or
the training of the citizens of the United Republic
by or for the benefit of organisations or other
public authorities engaged in the prevention or
carrying out of irrigation schemes and projects for
agricultural development;
(iii) research of study by or for the benefit or
organisations engaged in the production,
processing or marketing of food produce and
other related products;
(iv) the training of citizens of the United Republic by
or for the benefit of the organisations engaged in
the production, processing or marketing of food
produce and other related products;
(v) any project agreed or approved for implementation
pursuant to any agreement or memorandum of
understanding between the Government of the
United Republic and foreign Government or
international organisation.

nt to any agreement or memorandum of
understanding between the Government of the
United Republic and foreign Government or
international organisation.

Establishment of
Fund
Purpose of Fund

Establishment of
Fund
Purpose of Fund

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THE AGRICULTURAL DEVELOPMENT FUND ACT [CAP. 199 R.E. 2023]
5. The resources of the Fund shall be-
(a) such sums, as shall accrue from the sale of food aid
which may be received by the Government from
foreign Governments and international organisations;
(b) such sums as shall accrue from sales of fertilizer,
pesticides and other agrochemical products received as
aid by the Government from foreign Government and
international organisations;
(c) such sums as may in any manner become payable to or
vested in the Fund either under the provisions of any
written law or incidental to its administration by the
Co-operative and Rural Development Bank. 6.–(1) The Co-operative and Rural Development Bank shall
administer the fund as a Special Fund and, subject to the
provisions of the Act, section 8 of the Co-operative and Rural
Development Bank Act, and other provisions of that Act
regulating Special Funds shall apply to the Fund.

Act, section 8 of the Co-operative and Rural
Development Bank Act, and other provisions of that Act
regulating Special Funds shall apply to the Fund.

(2) The Co-operative and Rural Development Bank shall
maintain the Fund in a separately designated bank account or
accounts and shall manage the Fund in accordance with the
such directions as the Minister may issue:
Provided that, the Co-operative and Rural Development
Bank shall make no payment out of the Fund except with the
consent in writing of the Treasury Registrar in accordance
with the agreed annual expenditure programme. (3) Notwithstanding the foregoing provisions, the
Co-operative and Rural Development Bank may, where
circumstances so require, administer part of the Fund and
maintain accounts for such part of the Fund jointly with a
foreign Government or an international organisation. (4) Where any payment out of the Fund is made for the
purchase of any equity investment, such equity investment
shall be held by-
(a) the Co-operative and Rural Development Bank;
(b) any parastatal organisation;
Resources of
Fund
Management of
Fund
Act No. 7 of 1971

l be held by-
(a) the Co-operative and Rural Development Bank;
(b) any parastatal organisation;
Resources of
Fund
Management of
Fund
Act No. 7 of 1971

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THE AGRICULTURAL DEVELOPMENT FUND ACT [CAP. 199 R.E. 2023]
(c) any district development corporation;
(d) any co-operative society; or
(e) the Treasury Registrar,
as the Treasury Registrar may direct, and any such bank,
Parastatal organisation, district development corporation or
co-operative society holding any equity investment shall, at
any time, on the direction of the Treasury Registrar, transfer
the equity investment to any other organisation specified by
the Treasury Registrar or to the Treasury Registrar. (5) The Minister may, by regulations, regulate the
administration of the Fund. (6) A person who authorises any payment out of the Fund
in contravention of any provision of this Act or any direction
given or of regulations made under this section commits an
offence and on conviction, shall be liable to a fine not exceeding
fifty thousand shillings or to imprisonment for a term not
exceeding five years or to both. (7) The Bank may deduct from the Fund a service charge to
be determined by the Minister.

imprisonment for a term not
exceeding five years or to both. (7) The Bank may deduct from the Fund a service charge to
be determined by the Minister.

7.–(1) The Co-operative and Rural Development Bank shall
cause to be provided and kept proper books of account of the
payments made into and out of the Fund. (2) The accounts of the Fund shall be audited annually by
the Controller and Auditor-General and the audited accounts
of the Fund shall be published at the same time as the audited
accounts of the Co-operative and Rural Development Bank are
published. 8.–(1) Where the Minister is satisfied that at the close of any
financial year there are in the Fund moneys which are not
immediately required for the purpose of the Fund (which
moneys are in this section referred to as a “surplus”), he may
if in his opinion financial exigencies or the public interest so
require, and notwithstanding any provision to the contrary
contained in this Act or in any other written law, authorized
Accounts and
audit
Power of Minister
to reallocate
moneys in Fund

vision to the contrary
contained in this Act or in any other written law, authorized
Accounts and
audit
Power of Minister
to reallocate
moneys in Fund

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THE AGRICULTURAL DEVELOPMENT FUND ACT [CAP. 199 R.E. 2023]
application of the whole or any part of the surplus for or towards
defraying the development expenditure of any Ministry or
Department of the Government in any financial year.
(2) Every authorisation for the application of any surplus
made under this section shall be sufficient authority, without
further appropriation, to issue from the Fund the sum required
for the purposes specified by the Minister.
(3) Where the Minister proposes to authorise application
of any surplus for a purpose other than that agreed to between
the Government and a foreign Government or international
organisation, he shall first obtain the concurrence of the
foreign government or the international organisation, as the
case may be.
10. The provisions of this Act shall apply notwithstanding the
provisions of the Public Finance Act or any other written law
and any allocation of public revenue to the Fund shall be made
without further appropriation.
Application
Cap. 348