POLITICS AND POLICY
US-based environmental scientist Simba Tirima (left) and activist Phyllis Omido test soil samples from Owino Uhuru slums where a nearby metal smelting plant has been cited for lead pollution. PHOTO | FILE
By KIARIE NJOROGE, gnjoroge@ke.nationmedia.com
Industrialists and mining firms will be required to deposit cash with the National Environment Management Authority (Nema) to be used for compensation in case of environmental damage under a proposed new law, adding another layer of regulatory costs for investors.
The businesses will be required to pay the amount as bond after an assessment report, on the location, size and nature of their operations has been done.
For those projects yet to start, the bond will be paid at the point when the environmental impact assessment report is submitted to Nema.
The authority will use the bond to correct damages after firms in breach have failed to restore the environment as directed.
“The authority may in addition cancel any licence issued to the operator under the Act on the advice of the technical advisory committee, where the operator has become a habitual offender,” says the draft report.
Among those who will be expected to pay the bond are industrial plants, transporters of petroleum and hazardous chemicals, all power plants, quarries, pipelines (except for water) and sewer lines.
Others are those who process hazardous waste — incinerators, recycling plants and open dumpsites — refugee camps and companies exploring or extracting oil and minerals both onshore and offshore.
Nema will retain the cash bond for businesses that uphold the environmental protection practices and refund it when a project ends.
This means investors pursuing projects with expiry dates such as quarries and mining works will be liable for refund.
Industries with a perpetual life will only get a refund in the event of closure. The bond will be adjusted every year for inflation and the amount reviewed every three to five years to ensure adequacy.
The bond demand comes in the wake of reports of environmental degradation by manufacturers, with some being accused of dumping toxic materials.
In July, an asphalt plant in Gatuanyaga in Kiambu was shut down over hazardous emissions.
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