'Kenya is capable of meeting local demand for diapers,' MP Kimani defends Eco Levy

National Assembly Finance and Planning Chairperson Kuria Kimani has dismissed claims that Kenya is incapable of manufacturing its own diapers and sanitary towels saying the Eco Levy imposed on the two in the Finance Bill 2024 was meant to protect local manufacturers.

Kuria who spoke on Citizen TV’s The Explainer Show on Tuesday defended the move by the government to impose Eco Levy on the two essential household commodities pointing out that it was meant to cushion local manufacturers from cheap imports.

Contrary to government critics who alleged that the commodities are all imported from other nations, MP Kimani said the country can produce enough diapers and sanitary towels for its population.

He revealed that there are five major manufacturers who have the capacity to produce 1.5 billion pieces of diapers annually, to be used against 800 million needs within the same period.

“The thinking that we don’t have the capacity to manufacture sanitary towels and diapers in this country is so far fetched and there is empirical data to stop that,” he said.

“I want to tell Kenyans, please let us not hate ourselves that much to think we can't manufacture sanitary towels and diapers in the country.  We can locally produce 1.5 billion pieces of diapers a year. Our total consumption of diapers  in the country is only 800 million pieces a year.”

According to the MP, currently, the existing manufacturers can only produce 700 million pieces, which can be stepped up through government-initiated incentives.

He goes on to argue that the proposed Eco Levy on these commodities would be instrumental in ensuring imports are controlled so that they do not supersede local production.

The lawmaker underscores that prior to the proposal cheaper imports such as those from China and India had infiltrated the market deeming the Kenyan products redundant, thus the introduction of the levy to prevent a looming collapse of local industries.

“The ultimate production now without incentives is about 700 million pieces…Our products are competing with products from China and India and every time we buy a finished product, we are doing two things; we are exporting that job outside this country and we are risking our foreign exchange,” Kuria noted.

The Eco Levy, a proposal under the Miscellaneous Fees and Levies Act (MFLA) aims at charging manufacturers and importers whose goods affect the environment.

The select goods are specified in the proposed Fourth Schedule of the Bill.

For diapers, local manufacturers would need to remit 30% to the Eco Levy. This now means that one diaper piece will cost Ksh.25.53 up from Ksh.20 (1kg has 33 pieces).