Politics & Policy
MANUFACTURERS’ DILEMMA
On 28th February 2017 the Kenya government issued
a gazette notice on the ban of plastic bags that would
take effect from 28th August 2017. The ban was
targeting carrier plastic bags, plastic bags with handles,
as well as flat bags used by consumers to carry goods
from retailers. This move was to help the Environment
ministry tackle the huge waste in the country that has
become an environmental concern.
By george wainaina
[email protected]
Total ban on plastic bags would affect plastic bag
manufacturers and also manufacturers who use the
bags to package manufactured goods in sectors such as
food, agriculture, tea industry, floriculture, horticulture,
livestock and fisheries among others.
Manufacturers argued that the six month timeline
for compliance was limited and that they required
more time to clear stock and fulfill their contractual
obligations. The high court dealt a blow to players
in the plastic bag industry by declining to suspend
implementation of the ban.
12 | THINK BUSINESS • NOVEMBER 2017
The Kenya Association of Manufacturers argued
that the ban will have serious consequences on the
economy. KAM Chief Executive Phyllis Wakaiga said
that the country would lose KSh 5.2 billion in taxes and
over 600,000 jobs would be affected. Over 179 registered
manufacturers are at risk of losing their business.
According to a report released by KEPSA on the
overview of the economy and sectorial impact of the
prevailing political environment and other factors, the
manufacturing sector recorded a reduced growth. The
manufacturing sector which accounts for 9.2% of the GDP
had a reduced growth rate of 2.3% in quarter 2 of 2017
compared to 5.3% same period of 2016.
Mr. Kibichu is a bussinessman who started his
business hawking plastic bags. In 1999 he opened a shop
in Nairobi where his fellow hawkers would buy and resell
plastic bags to their customers. He operated till 2013
when he became a distributor of polythene products for
various manufacturers in the country. By having a plastic
bag manufacturing plant producing 3 tons of plastic
bags daily, his dream of one day becoming a renowned
industrialist was well on course. The future became bleak
when the gazette notice was issued. “I am staring at
losing an estimated Ksh 200 million which I have strained
so much to build in the last 4 years. I do not know where
to start and what I will do next” he said TB