KENYA – Environment Cabinet Secretary Aden Duale has proposed an eco-tax on imported finished products to address the financial burden of environmental pollution and the country’s inadequate waste management systems.
If enacted, this eco-tax aims to fund comprehensive post-consumption waste management efforts, including recycling and incineration, which still leave residual waste requiring sustainable disposal.
The proposed tax would apply to any individual or business introducing goods, products, or packaging materials into Kenya, obligating them to pay a fee covering the entire waste management cycle.
This would extend beyond the current Extended Producer Responsibility (EPR) obligations, which require producers to mitigate their products’ environmental impacts but do not account for the full scope of post-consumption waste.
Duale emphasized the need for a more holistic approach, noting that EPR alone does not address all the environmental challenges that waste poses.
“Currently, EPR focuses on reducing pollution and mitigating the negative impacts of products, but it does not cater to all post-consumption aspects of waste management,” he stated.
The revenue collected through the eco-tax would be channelled to the National Environment Restoration Fund, established under Section 25 of the Environmental Management and Coordination Act (Cap. 387).
According to Duale, these funds will be vital for combating biodiversity loss, mitigating climate change, and supporting key environmental initiatives.
The tax revenue will specifically finance the development of waste management infrastructure, ecosystem restoration programs, and research-driven innovations to enhance Kenya’s environmental sustainability.
“This eco-tax is designed as a strategic tool to target products that contribute significantly to waste,” Duale explained.
“It will encourage adopting sustainable practices, fund essential waste management programs, and promote environmental stewardship throughout the country.”
Public engagement is a key aspect of the proposal. Duale has invited input from citizens and stakeholders, encouraging them to submit their views or memoranda regarding the eco-tax.
This collaborative approach underscores the government’s commitment to involving the public in environmental policy decisions.
This is not Kenya’s first attempt to introduce an eco-tax. Earlier in 2024, the government included a similar proposal in the Finance Bill, which aimed to impose taxes on environmentally harmful products, such as technological and telecommunication devices, diapers, rubber tires, and plastic packaging materials.
While this earlier proposal focused on reducing the environmental impact of specific items, the new eco-tax bill seeks a broader application to ensure comprehensive waste management solutions for a wide range of imported goods.
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