Navigating Environmental Policy Change: Lessons from Kenya?s Plastic Bag Ban for a Just Transition of MSMEs
International Labour Organization (ILO)
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Abstract: This policy brief analyzes Kenya?s 2017 nationwide ban on single-use plastic bags as a case study in navigating environmental policy shifts while ensuring a just transition for micro, small, and medium enterprises (MSMEs). Drawing from stakeholder interviews conducted between May and July 2024, the brief explores the ban?s multifaceted impacts?environmental gains, disruptions to MSME operations, job losses, and emerging innovations. It emphasizes the disproportionate vulnerability of informal-sector MSMEs and workers, outlines incentives like tax exemptions for recyclers, and spotlights adaptive responses, such as MSME-led biodegradable packaging ventures. The report advocates for inclusive policymaking, resilient supply chains, financial support for enterprise adaptation, and social protections to enable MSMEs to thrive in a climate-regulated economy.