Kenya’s alcohol industry, represented by the Alcoholic Beverages Association of Kenya (ABAK), has expressed concerns over the newly introduced Sustainable Waste Management (Extended Producer Responsibility) Regulations, 2024. These regulations, introduced by the National Environment Management Authority (NEMA), impose high fees on packaging materials, leading to a projected 70 percent rise in production costs for alcoholic beverages. Industry stakeholders argue that the financial burden, estimated at over US$250 million, will be passed on to consumers, further straining the economic environment.
Under the regulations, manufacturers, importers, and brand owners must pay Kes150 per unit of packaging for materials such as plastics, aluminum, and glass, with additional levies including registration and licensing fees for Producer Responsibility Organizations (PROs). ABAK has criticized the amendments made after public participation, calling the provisions punitive and disproportionate to the economic realities faced by the industry. They assert that these regulations ignore rising operational costs, reduced consumer disposable income, and increased borrowing by manufacturers to meet tax obligations.
While the regulations aim to promote sustainable waste management, ABAK has urged the government to reconsider the financial impact on businesses. They advocate for a balanced approach that aligns environmental goals with the industry’s economic viability. The association continues to push for revisions through the National Assembly’s Committee on Delegated Legislation to ensure a practical and equitable implementation of waste management practices in Kenya.
