Q&A: Tax non-compliant firms share waste burden with consumers

From the newsletter

Joyce Gachugi, CEO of the Packaging Producer Responsibility Organisation (PAKPRO), says Kenya’s waste crisis can’t be solved without shared responsibility and strict enforcement. She calls for penalties on non-compliant companies and consumers, arguing that EPR will only work if everyone is held accountable for their waste footprint.

• Ms. Gachugi’s push to tax non-compliant firms reflects a shift from voluntary participation to fiscal accountability, aligning Kenya with global EPR norms and creating a stronger deterrent against neglecting waste management obligations.

• By advocating consumer penalties under “distributive shared responsibility,” the environmental scientist aims to break the cycle of littering by making individuals bear consequences, thus incentivising better packaging design and responsible disposal practices.

More details

How would you describe PAKPRO’s role within Kenya’s circular economy value chain? 

Joyce Gachugi: PAKPRO acts as a facilitator and linker within the circular economy value chain. What this means is that we work to bring different parts of the value chain together, serving as a go-between for manufacturers, brand owners and other actors—including consumers. 

What specific steps is PAKPRO taking to support Kenyan SMEs in meeting Extended Producer Responsibility (EPR) obligations under the Sustainable Waste Management Act?

Joyce Gachugi: We have created a platform specifically for SMEs. We've noticed many SMEs are actively seeking more recyclable and environmentally conscious packaging and a lot are already making that shift. Our goal is to help harness this momentum and support their compliance efforts. For example, we offer lower membership fees for SMEs compared to larger brands. 

We also hold group meetings like town hall sessions just for them, where we educate them on the legal requirements. Many SMEs are unaware of what is expected of them, the costs involved and how to make payments. To ease this, we have a standardised payment approach that allows them to spread their costs over time rather than absorbing everything upfront. This helps them manage compliance without hindering the growth of their business. 

What have been the main challenges in encouraging compliance with EPR regulations in Kenya?

Joyce Gachugi: Implementing and encouraging compliance with EPR regulations hasn’t been easy. We work closely with our partners, especially since we’ve been involved in developing the Sustainable Waste Management Act and the initial draft of the Extended Producer Responsibility Regulations. The main challenge right now is enforcement, ensuring companies actually comply. We can only do so much by informing and educating. Because we didn’t draft the regulation ourselves, enforcement isn’t within our authority—it's the government’s responsibility and that is the case with EPR. Another major hurdle is educating both consumers and businesses about what is expected of them, what will change and the country’s overall vision for waste management. 

You mentioned ‘Distributive Shared Responsibility’ during your talk at the Propak East Africa 2025 Conference. Can you explain what that means and why it matters in the context of EPR?

Joyce Gachugi: Distributive Shared Responsibility means that both consumers and producers share accountability for the environmental impact of products. Right now, under EPR, brand owners and manufacturers are expected to bear 100% of the responsibility. For example, if you find packaging polluting a river, the blame often falls on the brand owner, but it’s actually the consumer who littered it. This creates a culture where individuals feel they can act without consequence—and that shouldn’t be the case.

By distributive responsibility, I mean that penalties for consumers should be high enough to discourage careless behavior. At the same time, manufacturers need to consider whether they are providing packaging that is responsible and sustainable. Ultimately, everyone should bear the consequences of their actions.

What’s your perspective on penalising or taxing companies — including SMEs — that fail to comply with EPR regulations?

Joyce Gachugi: I completely agree—this applies to all companies, not just SMEs. If you’re non-compliant, you need to be taxed and pay the penalty. That’s why we set targets: to encourage compliance. EPR is a collective approach to managing waste. Everyone needs to be part of it. If you’re not compliant, then you must face the consequences and pay the penalties. 

You mentioned challenges in aligning Kenya’s recycling standards with global frameworks, especially around definitions and material classifications. Could you elaborate on how these gaps affect local innovation and recognition?

Joyce Gachugi : Today, there are many different definitions in use. For example, one of the presenters at the conference mentioned that in Europe, the garbage bags we use here are classified as non-recyclable. Yet in Kenya, we recycle 100% of those bags. In fact, our new garbage bags are made from recycled materials—the very same recycled materials. This shows that definitions aren’t uniform globally, which can lead to misunderstandings or skewed perceptions. Sometimes, people may dismiss data or performance from other regions because, in their context, it doesn’t apply or work.

Another interesting example is recycled PET. In Europe and Asia, recycled PET used in new bottles is more expensive than virgin PET. But here in Africa, recycled PET is actually cheaper—so again a quite different reality. 

Looking ahead over the next five years, what are PAKPRO’s key strategic priorities—especially in supporting SMEs and advancing circularity in Kenya?

Joyce Gachugi : Our main focus over the next five years is on collection and recycling. We’re investing a lot of effort into advocacy and knowledge creation because many people don’t participate simply because they don’t see the need—that’s a key barrier. Raising awareness for both consumers and businesses, including SMEs, is also a top priority. Consumer education, in particular, is very important to us. These priorities shape our recycling initiatives and educational programs. Additionally, we ensure that the funds we raise from our members are reinvested back into the value chain to support these efforts. 

What’s the one thing, if addressed, that would make your work as a PRO significantly easier?

Joyce Gachugi: Just give us good regulation—that’s the biggest challenge. Honestly, my work right now and that of any PRO, can’t move forward without one. No company will comply; they ask, “Who are you? Who says this is mandatory?” Without regulation, enforcement is impossible. Even the government struggles to ensure compliance. It’s tough. 

Any final thoughts or reflections you’d like to share?

Joyce Gachugi : Africa can achieve far more than we’ve been led to believe. With advancements in technology and the strong commitment of our young population—especially Gen Z, who are the most environmentally conscious—we have real potential. Honestly, compared to them and even our ancestors, the rest of us can seem a bit chaotic.