Manufacturer demands Ksh.2B compensation over plastic ban

Manufacturer demands Ksh.2B compensation over plastic ban

A plastic bags manufacturer is now seeking a total of Ksh.2 billion as compensation from the Ministry of Environment and Natural Resources for losses incurred after the plastic bags ban took effect.

Hi-Plast Limited moved to the High Court seeking court intervention lamenting that the ban caused serious losses since the ban took effect.

In the affidavits filed before court through lawyer Eddy Orinda, the company says it would have been prudent if the government allowed it to at least engage in measures to mitigate its loses.

“The petitioner’s loans were to be repaid solely based on sales projection that were hinged on month output and sales of its products which are now deemed illegal,” Orinda says in documents filed in court.

An affidavit sworn by the company’s director Mr. Mahesh Dodhia states that the ban seems to have been effected to benefit businesses of friendly manufacturers citing this as discriminatory and malicious.

Mr. Dodhia explains that it could have been easier for NEMA to do a factory by factory audit to determine the amount of stock being held by each stakeholder and determine how long it would have taken to dispose off the stock without unduly ambushing the manufacturer.

The petitioner says by the time the Gazette Notice was published in March, 2017; “they were in the process of shipping raw materials and had they to be involved, they would have made plans to mitigate losses or refrained from making bulk raw material orders.

The company says it invested millions of shillings both in machinery and raw materials which had been sourced prior to the ban and which had been projected to last for more than eight months.

The company has listed Director General NEMA and AG as respondents in the matter.

Tags:

NEMA KAM plastic bags compensation importation plastic ban Gazette Notice AG Director General NEMA Ksh.2B losses incurred manufacture Manufacturer

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