Africa-Press – Kenya. RETAILERS have cautioned of a potential shortage of essential commodities and rising prices as enforcement of new waste management rules gathers pace.
They have warned that the supply chain is not ready for full compliance set for end of May.
This is under the Sustainable Waste Management (Extended Producer Responsibility) Regulations, 2024, being implemented by National Environment Management Authority (NEMA).
Under the new rules, producers, importers and other players in the value chain must take responsibility for the entire lifecycle of their products, including post-consumer waste.
However, industry players say low compliance levels, particularly among suppliers, could disrupt supply, especially in plastic-heavy categories such as beverages, personal care and household goods.
“We are seeing supply pressure in plastic-heavy categories such as beverages, personal care, household goods if suppliers are not compliant by the end of the period given by NEMA, end of May,” the Retail Trade Association of Kenya (RETRAK) CEO, Wambui Mbarire, said.
If enforcement outpaces readiness, RETRAK says retailers may be forced to reject goods from non-compliant suppliers, leading to stock gaps and reduced product variety on shelves.
“Retailers are also facing operational strain as they are now required to verify supplier compliance, yet they are not the primary obligated parties under EPR,” Mbarire told the Star.
According to RETRAK, compliance remains at an early stage, with fewer than 15 per cent of suppliers having secured Extended Producer Responsibility (EPR) certification.
While larger manufacturers have made progress, many small and medium enterprises are still catching up, with some only recently becoming aware of the regulations.
This uneven transition risks sidelining SMEs and disrupting supply chains, as a significant number of suppliers remain mid-transition—still registering, affiliating with Producer Responsibility Organisations (PROs), or aligning packaging to meet requirements.
Retailers say the immediate impact is already being felt through delayed restocking and emerging cost pressures from compliant suppliers, who are passing on the additional cost of meeting regulatory requirements.
The broader private sector, including the Kenya Private Sector Alliance, Association of Kenya Suppliers and the Shippers Council of Eastern Africa, had earlier warned that the cumulative cost of compliance will inevitably be transferred to consumers.
Among the most affected items are expected to be diapers, sanitary towels and detergents, with price increases projected at between nine and 24 per cent.
For instance, a jumbo pack of 60 diapers is expected to increase from Sh2,000 to Sh2,553. A baby typically requires approximately 2,520 diapers annually, which will cost families an additional Sh23,000 per year.
A 14-pack of sanitary pads, on the other hand, is expected to go up by at least 20 per cent from an average Sh218 to Sh261.60, a burden that disproportionately affects school-going girls and low-income women, risking increased absenteeism, reduced academic performance and potential health issues from unsafe alternatives.
Consumer goods like bread, alcohol, cosmetics and all packaged commodities are also expected to go up as players in the supply chain pass on additional costs to consumers.
Industry concerns centre on the cost structure of compliance, including a Sh150 levy per imported item, registration fees, annual licensing charges and additional permit requirements.
Businesses have questioned the basis of the flat levy, arguing it does not consider factors such as weight, recyclability or environmental risk.
In addition, importers must obtain an import permit for each shipment, which carries further financial implications.
Producers are also mandated to register individually with NEMA, paying a one-off registration fee of Sh5,000 or Sh10,000 under the collective action scheme (Producer Responsibility Organisation – PRO) and an annual renewable license fee of Sh50,000 for individuals or Sh100,000 for schemes.
“The cumulative impact of these costs will directly increase the cost of importation and manufacturing. Inevitably, these additional operational expenses will be passed on to consumers, leading to higher retail prices for essential products such as diapers, sanitary towels, detergents and fabric softeners,” private sector groups say in a joint memorandum seen by the Star.
There are also fears of duplication, as firms already pay fees to PROs and county governments, raising the risk of double charges.
Logistics players warn the rules could further complicate import processes, potentially causing delays at the port and increasing the cost of doing business.
“We support sustainable environmental practices, but the current framework is punitive and unclear in its implementation,” Shippers Council of Eastern Africa CEO, Agayo Ogambi said.
“If systems are not fully ready, we risk delays in cargo clearance, higher production costs and reduced competitiveness.”
