The alcoholic beverages industry is calling on Parliament to scrap a new set of waste management regulations, warning that the move could send production costs soaring by a staggering 70 percent.
ABAK argues that the Sustainable Waste Management (Extended Producer Responsibility) Regulations 2024 will burden manufacturers with excessive fees, derail sustainability progress, and render businesses untenable.
The regulations, currently under review by the National Assembly’s Committee on Delegated Legislation, aim to make manufacturers responsible for managing post-consumer waste generated by their packaging materials. However, ABAK says the Ministry of Environment has gone too far.
“While we fully support sustainable waste management, these regulations will impose heavy financial burdens that could cripple the manufacturing sector,” said ABAK Chairman Eric Githua.
Among the contentious proposals is a KES 150 fee per item on imported packaging materials and finished goods. ABAK argues this charge is ambiguous and amounts to double taxation when combined with the fees manufacturers already pay to Producer Responsibility Organisations (PROs) for post-consumer waste management.
“It’s unclear what constitutes ‘an item,’ and this vagueness creates room for abuse. At KES 150 per item, the cost of production in the alcohol industry will skyrocket by 70 percent,” Mr. Githua added.
A 5 percent fee to be withheld by the National Environment Management Authority (NEMA) from registered PROs.
An annual operating license fee of KES 100,000 — 10 times higher than the initial KES 10,000 proposed in the draft regulations.
Producer registration fees that manufacturers claim were increased without prior consultation.
ABAK Secretary Eric Kiniti criticized the lack of public engagement in crafting the rules, calling it a “fatal sin of omission.” He argued that additional provisions, like the ambiguous per-item fee, were never discussed during stakeholder consultations.
“These regulations, if passed, will not only raise production costs but also make alcohol unaffordable to consumers. The Ministry must conduct a thorough impact assessment and engage all stakeholders,” Mr. Kiniti emphasized.
ABAK now urges Parliament to annul the regulations and direct the Ministry of Environment to re-engage stakeholders to develop practical, sustainable solutions that do not stifle the manufacturing sector.
“Achieving 100 percent sustainable waste management requires time, investment, and strong collaboration between the government and industry players,” said Mr. Githua.
The ball now lies in Parliament’s court. Will lawmakers heed the manufacturers’ warning, or will the new regulations shake up Kenya’s beverage industry? The coming weeks will be decisive.