New Mandatory Fees for Importers & Manufacturers Take Effect Today

Hello Moneymakers, Kubasu here. In this newsletter, we’re covering NEMA’s new regulations for manufacturers and importers, Youth switch off phones to evade Ksh9.2 billion govt loans, and lower taxes for select companies.

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Companies Risk Being Kicked Out of Kenya

On April 30, the National Environment Management Authority (NEMA) issued a notice requiring all manufacturers, producers, and importers to register with the authority—or risk having their products removed from the local market—effective today, Monday, May 5.

In the notice, NEMA indicated that the registration is part of the newly enacted Sustainable Waste Management (Extended Producer Responsibility) Regulations.

“These regulations aim to promote environmentally sound management of products throughout their life cycle, to obligate producers to take responsibility for the end-of-life (post-consumer) management of their products, and to operationalize the polluter pays principle,” the notice read in part.

Why It Matters: This means that if branded waste is discarded improperly, companies risk facing penalties, even being banished from the Kenyan market.

Applicable Fees: NEMA requires producers and importers to register their compliance schemes and pay the requisite fees. Those intending to import environmentally hazardous goods must obtain Extended Producer Responsibility (EPR) certificates at the point of import and pay corresponding fees for the products they bring in.

“The EPR import fee of Ksh150 per item will apply as follows: for Categories 1, 2, and 5, the fee will be charged on standard packaging; for Categories 3 and 4, it will apply to the product unit.

The standard packaging (secondary/bulk packaging) will be as indicated in the packing list generated at the point of export and may include bales, cases, and pallets,” the notice added.

What NEMA Is Saying: “This deadline was set because the EPR regulation came into force on November 4, 2024, and producers were given six months to comply. Each company must declare its name, the products it introduces into the market, and the volume. Failure to do so constitutes an offence,” said Dr. Ayub Macharia, Director of Environmental Enforcement at NEMA, according to the Daily Nation.

“With EPR, the producer must ensure that once packaging reaches the consumer, it is recovered and recycled. That’s what extended responsibility means.”

Fast Facts: Kenya is in a race to scale down plastic waste after banning the use of plastic bags in 2017. The Ministry of Environment estimates that Kenyans generate 25,000 tonnes of waste daily, classified as 60% organic, 30% recyclable, and 10% other.

Tax Hike on Affordable Housing

President William Ruto’s flagship affordable housing project has been hit by a tax increase under the Finance Bill 2025, Standard media reports.

According to the outlet, the bill proposes the deletion of Paragraph 109 of the First Schedule of the Value-Added Tax (VAT) Act, which currently lists supplies to affordable housing as VAT-exempt.

With this change, the bill effectively introduces a 16 per cent VAT on construction materials supplied to affordable housing projects.

Why This Matters: This marks a shift from the overall tone of the bill, which contains no new tax measures, unlike the 2024 version that sought to raise Ksh300 billion but was ultimately shelved after nationwide protests.

However, the 2025 bill does reduce the Export and Investment Promotion Levy from 17.5 per cent to 5 per cent for some construction materials. Targeted products include semi-finished iron, as well as bars and rods of iron or non-alloy steel.

Youth Switch Off Phones to Evade Ksh9.2 Billion Loan

A majority of Kenyan youth who received part of a Ksh9.2 billion World Bank loan under the KYEOP programme are untraceable—many switched off their phones or refused to cooperate with auditors, according to the Daily Nation. Out of 308 sampled recipients, 217 were either unreachable or uncooperative, raising concerns over “ghost beneficiaries.” Despite funds reaching thousands, the programme's impact remains unclear as youth unemployment persists.

Low Tax for Companies Investing Ksh3 Billion

The National Treasury has proposed a reduced corporate income tax rate for companies operating within Nairobi's financial hub, offering a 15 percent rate for the first 10 years and 20 percent for the following 10 years—significantly lower than the standard 30 percent rate applicable to resident companies in Kenya. To qualify, businesses must inject at least Sh3 billion into the Kenyan economy, a report by Business Daily has shown.

Farmers Pocket Ksh1.9 Billion From Brookside

Business Daily reported that Brookside Dairy disbursed Ksh1.9 billion to farmers in the central and southern Rift Valley regions for milk supplied in 2024—a 29 percent rise compared to 2023, driven by improved weather conditions and enhanced farming practices. Narok County topped the list with payouts totaling Ksh1 billion, up from Ksh680 million last year. In Nakuru, farmers received Ksh854 million, an increase from Ksh794 million, while those in Kericho and Bomet counties collectively earned Ksh69 million, representing a nine percent year-on-year growth.