INAUGURAL SPEECH BY THE AG. CABINET SECRETARY, MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERIES, ADAN A. MOHAMED, EBS DURING THE 1°° SPECIAL FULL BOARD MEETING OF THE AFFA BOARD OF DIRECTORS ON TUESDAY 30™ JUNE 2015 AT KILIMO HOUSE AFFA Board Members; Ladies and Gentlemen; Let me take this opportunity to congratulate you on your appointment and welcome you to the Board of Directors of the Agriculture, Fisheries & Food Authority (AFFA). Following the publication in the Kenya Gazette No. 56 (special issue) of 29" May 2015, and the subsequent handing over by the Interim Management Committee on 25" June, 2015, you now have the mandate to execute your responsibilities as AFFA Board members. Let me at the onset say that you are taking up a very critical responsibility of steering the body that oversees regulation and development and production of the agriculture sector. This is a strategic sector that contributes over 25% to the country’s GDP and is a source of livelihood to millions of Kenyans. As you are aware, 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 that would rationalize multiple legislation governing the sector. Prior to the current reforms, the sector had in excess of 130 laws that made it uncompetitive, inefficient and too bureaucratic for a conducive business environment. It was also envisaged that these reforms would make the 1sector regionally and globally competitive through the overall reduction of cost of production and increased efficiency in service delivery. The merger process commenced with consolidation of the agricultural sector legislations which culminated into the enactment of three key laws namely; i. Agriculture, Fisheries and Food Authority Act, 2013. ii. The Crops Act, 2013. iii. The Kenya Agricultural and Livestock Research Act, 2013 The Crops Act 2013 was gazetted on 1* August, 2014, which repealed the following statutes; i. Agriculture Produce Marketing Act (Cap 320) ii. Canning Crops Act (Cap 328) iii. | Cereals and Sugar Finance Corporation (Cap 329) iv. Coconut Industry Act (Cap 331) v. Cotton Act (Cap 335) vi. Pyrethrum Act (Cap 340) vii. Sisal Industry Act (Cap 341) viii. | Tea Act (Cap 343) ix. Coffee Act (No 9 of 2001) x. Sugar Act (No 10 of 2001) All the institutions earlier established under the repealed laws ceased to exist. These were: i. Kenya Sugar Boardvi. vii. viii. Tea Board of Kenya Coffee Board of Kenya Horticultural Crops Development Authority Pyrethrum Board of Kenya Sisal Board of Kenya Cotton Development Authority Kenya Coconut Development Authority These now operate as the following Directorates under AFFA: i. Coffee Directorate li, Tea Directorate iii. Sugar Directorate iv. Horticulture Crops Directorate v. Fiber Crops Directorate (cotton and sisal) vi. Nuts and oil Crops Directorate (coconut and other oil crops) vii. Pyrethrum and other industrial Crops Directorate viii. Food Crops Directorate ix. Commodities Fund In accordance with the Transitional Provisions of the AFFA Act and Crops Act, all the funds, assets, liabilities and rights which were vested in the former institutions were vested in the Authority. To oversee the smooth transition of the affected institutions into AFFA and prepare ground for commencement of the Crops Act, the Cabinet Secretarygazetted an Interim Management Committee (IMC) on 28" of February 2014, which worked towards the realization of this objective. I take note of the milestones achieved by the IMC, particularly with regard to establishing the structure, appointing the interim management, setting in motion. the process of harmonizing the terms and conditions of service and preparing the draft regulations. The task of fully actualizing proposals and recommendations made by IMC on operationalization of AFFA is now your responsibility. You have the immediate task of formalizing the corporate structure, the terms of service and concluding on the regulations to guide the sector. Further, you will be expected to establish elaborate corporate governance structures that will ensure prudence and accountability. This will also call for establishment of a strong institutional work ethic and culture commensurate with expectations for efficient and effective service delivery. As you set out to do this, it is important to recognize the Constitutional provisions as well as expectations for professionalism, ethical conduct and the highest standards of corporate governance. In particular, you must take cognizance of the constitutional frame work within which the agriculture sector is operating. The fact that Agriculture is devolved calls for high level of engagement with the County Governments with a view to seeking common ground on issues that would otherwise be a source of acrimony and stumbling blocks in the pursuit of the sector’s development. 4As you may be aware, the respective sub-sectors are facing various challenges ranging from diminished primary production, high costs of production, poor governance, limited market access, international trade barriers and low uptake of technology, among others. It is incumbent upon the AFFA Board to provide the requisite leadership and guidance with a view to executing immediate and long term interventions. There is need for you to anchor your strategic focus on the agriculture sector policy as well as sub- sector specific policies and interventions. I wish to bring to your notice also the new governance guidelines for State Corporations, dubbed “Mwongozo” which is expected to guide your operations and decision making in the Board. I advise you to read it as you prepare to take up your role, appreciate its importance and in a little while you will sign and adhere to the Code of Ethics in line with the guidelines. With these few remarks it is now my pleasure to formally inaugurate the Board of Agriculture, Fisheries and Food Authority, and wish you success in carrying out your roles, functions and responsibilities. Thank you Sicily K. Kariuki (Mrs.), MBS. Principal Secretary State Department of Agriculture Ministry of Agriculture, Livestock and Fisheries