New push to formalise garbage collection SMEs

 A waste collector rummages through the dumpsite encroaching on homes and businesses along Kangundo Road, on June 27, 2025. [Nanjinia Wamuswa, Standard]

Waste and garbage collection is a viable enterprise that can not only provide livelihoods for thousands of Kenyans but also contribute to Kenya’s economic development.

Collecting and recycling garbage daily from homes, markets, and businesses is one of the most effective ways to protect and conserve the environment. 

When waste is properly collected, sorted, and recycled, it reduces the amount of garbage that ends up in landfills, rivers, and open spaces, thereby preventing environmental pollution, including contamination of soil, water, and air. 

It also reduces the spread of diseases caused by poor sanitation and accumulated waste, such as cholera, typhoid, and malaria, which are often linked to breeding grounds for disease-carrying pests like flies and mosquitoes.

Yet, waste collection and recycling have long been viewed as dirty, low-status work in Kenya. Many people in the industry continue to face stigma, limited support, inadequate equipment, and unstable incomes. 

It’s for these reasons that Hivos, in partnership with Kenya Private Sector Alliance (Kepsa), KCB Foundation, Somo, and USIU-Africa, has launched the European Union (EU) SWITCH Kenya Green Programme - Tujenge Pamoja (Let’s Build Together) - funded by the EU. 

Circular economy

It is designed to support Kenya’s transition from a linear ‘take–make–dispose’ model to a circular economy centred on repair, reuse, and recycling. 

The launch is welcome news to Philomena Mwangi, founder of the Roysambu Garbage Handlers and Aggregators Association. 

In Roysambu Sub-County, her group collects waste from households and businesses, consolidates it at designated collection points, and sorts recyclable materials such as plastics, polypropylene bags, and electronic waste from non-recyclable waste. 

“Our work comes with many challenges. First is the perception that we are dirty, low-status, and uneducated, and that collecting garbage is the only work we can do,” she says.

Since the group was formed in 2007, waste collection has been its main source of income, helping many households pay for food, clothing, rent, and school fees for their children.

“We started by collecting waste mainly from households. Over time, we have grown and now serve several large businesses,” she says.

Access to finance has remained her biggest challenge, compounded by some homeowners refusing to pay for waste collection services.

The launch presented Philomena with an opportunity to learn, network, and explore solutions to the challenges that continue to affect waste collectors and aggregators. 

Dr Jackson Koimbori says the approximately €5.4 million, four-year initiative focuses on implementing circular economy solutions across the plastic, organic waste, and textile value chains.

The programme aims to directly support more than 800 SMEs, indirectly impact over 2,400 businesses and individuals, and create more than 560 jobs within the circular economy sector. 

Informal sector

He says the programme will begin by identifying and mapping businesses before training them to become market-ready. 

After the training phase, 150 selected businesses will receive catalytic grants ranging from €20,000 to €60,000 to help them expand and scale their operations. The grants will not require repayment. 

To qualify for the funding, businesses must meet certain formal requirements. Those operating in the informal sector must provide proof of registration or evidence of operating legally, such as county payment receipts. 

“The businesses that will receive this funding must demonstrate strong potential for growth and scalability to qualify. However, they must first undergo training to help them package their proposals effectively,” says Dr Koimbori. 

The project targets eight counties, including Nairobi, Nakuru, Machakos, Makueni, Mombasa, Kiambu, Kilifi, and Kwale, which were selected due to significant waste management challenges, particularly in plastics, textiles, and organic waste. 

Ndinda Maithya, from Hivos, and the Programme Manager at UE Switch Kenya Green, Tujange Pamoja, says the programme focuses on supporting MSMEs and enterprises operating within Kenya’s circular economy sector.

She explains that the purpose of the launch event was to bring together all key stakeholders involved in waste management and sustainability initiatives. “We are launching this program by bringing together all stakeholders, including the national government, county governments, waste collectors, civil society organisations, the private sector, and communities, to discuss how we can collectively achieve the programme’s overall impact,” she says. 

Maithya adds that the programme will fund and support MSMEs, with a significant share of the project funding going directly to businesses through seed grants and business support initiatives. 

“Around 80 to 90 per cent of the funding will go to MSMEs. Some businesses will apply for resources after training so they can scale up their operations and innovate,” she says. 

She reveals that beneficiaries will first undergo mapping, training, mentorship, and exposure programs before receiving grants. “We want to prepare them before they receive resources. If someone receives money before they are ready, it can create problems instead of solutions.” She describes waste as not only a Kenyan challenge but a global crisis, particularly plastic pollution.

“Waste is a huge problem, not only in Kenya but globally. Just look at the floods happening in Nairobi. Immediately after the floods, what do we see? A lot of plastic and waste,” she says.  In addition to supporting MSMEs, the programme will also focus on advocacy and public awareness campaigns. “We will target the entire population through advocacy and awareness creation. When you have waste, how do you dispose of it properly? After segregation, what happens next?” she poses. Maithya explains that waste can become part of a value chain, organic waste can be used as animal feed, plastic waste can be collected by waste pickers and sold to aggregators, and aggregators can then supply recycling factories. 

James Odongo, CEO of Kenya Extended Producer Responsibility Organisation (Kepro), says one of the greatest challenges facing the circular economy sector is the difficulty of channelling financing into what is still considered a semi-formal industry. 

Bankable project

He explains that waste management businesses require patient capital because returns often take time to materialise.

“Traditional investors are usually hesitant to invest in sectors perceived as risky or poorly structured. The launch allows us to redefine what a bankable project looks like within the waste ecosystem,” he says.

Odongo discloses that since its establishment, KEPRO has invested more than Sh300 million in interventions across the circular economy sector. Support has included grants for recyclers, provision of protective equipment, training, awareness campaigns, and capacity building for waste pickers and aggregators. Odongo describes Kenya’s circular economy as a largely untapped opportunity estimated to be worth as much as 54 billion dollars (Sh6 trillion).

However, he acknowledges that the country is still in the early stages of transitioning from a linear economy to a circular one. He explains,

“We grew up in a culture of take, use, and dispose, but consumers are slowly beginning to understand their responsibility in environmental stewardship.”

The organisation has launched a nationwide awareness campaign under the slogan ‘My Waste, My Responsibility,’ aimed at promoting proper disposal, segregation at source, recycling, and responsible consumption habits.

One of the biggest obstacles, Odongo says, is the lack of reliable markets for recycled materials. Waste collectors may gather recyclable products, but unstable pricing and unreliable buyers often make the business unpredictable.

Even so, he believes the sector holds enormous promise for job creation and economic growth. “We are seeing more green jobs emerging every year, and the sector is already contributing more than two percent to Kenya’s GDP.”

Mombasa is among the counties set to benefit from the project. Swabrina Yusuf says the partnership will help strengthen the county’s recycling initiatives and address plastic pollution. “Mombasa does not have enough space for waste disposal, so partnerships like this are critical in helping us manage waste more effectively,” says Swabrina, Director in charge of Youth Affairs at the county.

Philomena says her current priority is acquiring a baling machine for recyclable materials such as sacks and plastics. “Baling makes storage easier, improves cleanliness, and saves space. Recycling companies also prefer materials delivered in compressed bale form,” she says.

She also lacks a truck for transport and currently spends at least Sh13,000 per trip on hired trucks, a cost that significantly cuts into their profits. Others include additional personal protective equipment (PPE) such as gloves, reflective jackets, and gumboots for workers, most of whom are women and youth.

Philomena, who works with at least six people daily, cites competition from other enterprises that have since emerged.