Alcohol industry pushes back against waste management rules in Kenya

KENYA – The Kenyan alcohol industry has raised concerns over the newly introduced Sustainable Waste Management (Extended Producer Responsibility) Regulations, 2024, by the National Environment Management Authority (NEMA), which imposes hefty fees on packaging materials.

Through the Alcoholic Beverages Association of Kenya (ABAK), industry stakeholders have appealed to the National Assembly’s Committee on Delegated Legislation to review the regulations, citing an anticipated 70 percent increase in production costs for alcoholic beverages.

According to ABAK, the financial burden of the proposed fees is expected to exceed US$250 million, which would ultimately be passed on to consumers. 

Zack Munyi, head of Public Policy at Kenya Breweries Limited (KBL), told the parliamentary committee that the regulations require industry players, including manufacturers, importers, brand owners, and repackagers, to pay Kes150 per unit of packaging for non-hazardous materials such as plastics, aluminium, paper, glass, and cartons.

The same levy applies to packaging for hazardous products such as industrial chemicals, pharmaceuticals, agrochemicals, and cosmetics. 

Munyi emphasized that these provisions significantly increase costs for alcohol manufacturers while disregarding the industry’s economic realities.

“This will lead to a 70 percent rise in production costs for alcohol products,” Munyi stated. 

“This excludes additional levies, such as registration fees for individual and collective Producer Responsibility Organizations (PROs) at Kes5,000, payments to NEMA amounting to 5 percent of what producers pay to PROs for waste collection, and an annual PRO operating license fee of Kes100,000.”

ABAK has also argued that the regulations were amended after the public participation phase, introducing contentious provisions targeting essential packaging materials. 

The association asserts that the fees fail to account for the already strained economic environment, marked by high operational costs, limited consumer disposable income, and increased borrowing by manufacturers to meet tax obligations.

The Sustainable Waste Management Regulations, 2024, were published by the Ministry of Environment, Climate Change and Forestry as part of Kenya’s broader efforts to promote environmental sustainability. 

However, ABAK has described the fees as disproportionate and punitive, urging the government to balance environmental goals with the industry’s financial viability.

The association has called for a review of the regulations to ensure they align with the realities faced by manufacturers while still addressing the need for sustainable waste management practices in Kenya.

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