Environment Principal Secretary Festus Ng'eno on Tuesday, June 11, justified why the government had opted to introduce the Eco Levy in the Finance Bill 2024.
Appearing before the Finance Committee, Ng'eno explained that the levy was introduced to address concerns about waste management in the country.
He added that the money collected from the manufacturers and importers would be used in environmental conservation initiatives.
The levy, therefore, targets products such as plastic packaging, smartphones and diapers.
Consequently, owing to the inclusion of packaging, manufacturers warned that bread and cooking oil prices would increase by Ksh9 and Ksh16 respectively.
“The revenue generated from the levy is earmarked for such initiatives as putting up enhanced waste management systems, creating public awareness and education through nationwide campaigns, to support innovation and enhanced research and development in green technologies," He stated.
Additionally, initiatives such as tree planting and nationwide environmental campaigns will be implemented with the money collected from the imposition of the levy.
Further, the PS noted that the levy was not new and had been adopted by other countries such as Germany, Estonia, Ireland, Jamaica, Guyana and Ghana.
According to the PS, the government will collect over Ksh50 billion through the imposition of the levy.
However, Members of Parliament poked holes into the programme with a section of the Finance Committee questioning what the levy was not proposed to be ringfenced as the Housing Levy.
“When this levy is collected alongside other revenue, how will you determine what goes to the initiatives you have highlighted if it is not ringfenced ?”Kituri Rural MP David Mboni posed.
The Eco Levy was introduced in the Finance Bill 2024 and targets items considered harmful to the environment.
Nonetheless, despite the move, manufacturers have warned of an increase in consumer goods should the MPs pass the Finance Bill as is.
