Pollution Control of Small-scale Metal Industries in ...

Pollution Control of Small-scale Metal Industries in Nairobi

Pollution Control of Small-scale Metal Industries in Nairobi Final report of the project ‘Small-scale Industries and Environmental Pollution in Kenya’

Jos Frijns, Institute for Housing and Urban Development Studies Paul Kirai, Environment Management Services Joyce Malombe, Housing and Building Research Institute Bas van Vliet, Wageningen Agricultural University August 1997 Centre for the Urban Environment, Rotterdam/Wageningen, The Netherlands Housing and Building Research Institute, Nairobi, Kenya

CIP-DATA KONINKLIJKE BIBLIOTHEEK, DEN HAAG Jos Frijns, Paul Kirai, Joyce Malombe and Bas van Vliet Pollution Control of Small-scale Metal Industries in Nairobi / Frijns, J., Kirai, P., Malombe J. and B. van Vliet - Wageningen: Department of Sociology WAU With ref. ISBN 90-6754-500-7 Subject headings: Environment / Kenya / Small-scale Industry Copyright 1997 Department of Sociology WAU and Centre for the Urban Environment No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission of the copyright owners. Cover by Daniël Loos, Wageningen Printed by GSC Van Gils BV, Wageningen

“And in the Industrial Area, could the bonemeal company Gadhome Ltd do something about that stinking white effluent, and could the tanners Aziz Din Nabibux reduce the pong at their place, perhaps by sealing their giant garbage bin?” Watchman, Daily Nation, 23 June, 1997

Preface This is the final report for the research project ‘Small-scale Industries and Environmental Pollution in Kenya’, conducted by the Centre for the Urban Environment (CUE, a collaboration of the Institute for Housing and Urban Development Studies, IHS, and Wageningen Agricultural University, WAU), the Housing and Building Research Institute (HABRI), and Environment Management Services (EMS). The research was conducted between 1995-1997 and consisted of two phases. In the first phase, environmental problems and options for cleaner production were assessed at three small metal working enterprises in Nairobi. In the second phase, strategies were developed to assist the enterprises in restructuring their production processes to be more environmentally sound. The project was sponsored by the Ministry of Foreign Affairs of The Netherlands, through the SAIL Foundation. For their contribution to the project we would like to thank the employees of the enterprises studied, the representatives of the organisations interviewed, Okang’a Ooko of Undugu Society for information on Kamukunji, and our colleagues at HABRI and EMS. Special thanks are owed to the members of the advisory board, David Edelman and Ed Frank of IHS (Urban Environmental Management Department), and Joost van Buuren and Tuur Mol of WAU (Department of Environmental Technology and Department of Sociology, respectively), who have critically discussed the project activities and this final report. We thank Emma Doyle for the English editing. Finally, we offer our particular thanks to the owners of the studied enterprises in Nairobi, whose co-operation was central to the success of the project.

Contents List of Tables, Figures and Appendices

v

Abbreviations

vii

Summary

vii

Chapter 1 Introduction 1.1 Introduction 1.2 Problem Statement 1.3 Research Objectives 1.4 Research Activities 1.5 Structure of the Report

1 1 2 3 4

Chapter 2 Methodology: In-depth Case Studies and Social Networks 2.1 Introduction 2.2 Case Study Research 2.3 The Selection of Case Studies 2.4 Profiles and Networks 2.4.1 Enterprise profiles 2.4.2 The analysis of networks 2.5 Formulating Supportive Strategies

5 5 6 7 7 8 12

Chapter 3: Theoretical Framework: Small-scale Enterprises and Pollution Abatement 3.1 Introduction 3.2 Small-scale Industries and Economic development 3.2.1 Informality and the small-scale sector 3.2.2 Expectations of economic potential 3.2.3 Supportive policies for small enterprise development 3.3 Industrial Pollution and Environmental Management in Developing Countries 3.3.1 Environmental impacts of small-scale production 3.3.2 Urban environmental management 3.3.3 Pollution control principles and policy instruments 3.4 Small-scale Industries and Pollution Abatement Strategies 3.4.1 Cleaner production

13 13 13 16 20 21 21 22 24 26 27

3.4.2 Industrial parks 3.4.3 Taking the industrial network into account 3.5 Hypotheses for Further Study

31 34 36

Chapter 4 Kenyan Context: Industrial and Environmental Policies Affecting Small-scale Industries 4.1 Introduction 4.2 Kenya’s Industrial Structure 4.2.1 Small-scale enterprises 4.2.2 Labour absorption in small-scale enterprises 4.2.3 Contribution of small-scale enterprises to the national economy 4.3 Industrial Policy in Kenya 4.3.1 Industrial policy towards the year 2020 4.3.2 Support for small-scale industries from 1972 to date 4.3.3 Problems and prospects in small-scale industry support 4.4 Urban Environmental Pollution Problems 4.4.1 Industrial pollution 4.4.2 Small-scale industries and environmental pollution 4.5 Environmental Policy in Kenya 4.5.1 Integration of environmental policies 4.5.2 Environmental regulations affecting industries 4.6 Role of Different Actors in Policy, Industrial and Societal Networks 4.6.1 Actors in the Field of Policy 4.6.2 Societal actors 4.6.3 Actors within the Industrial Sector 4.7 Conclusions

37 37 38 40 42 42 44 44 47 48 49 49 50 52 52 54 55 55 56 56

Chapter 5 Case Studies: Practices of Metal Working in Nairobi 5.1 Introduction 5.2 The Small-scale Metal Working Sector in Nairobi 5.2.1 Metal work in Nairobi 5.2.2 Problems and prospects 5.2.3 Environmental aspects 5.3 Electroplating Enterprise, Industrial Area 5.3.1 Locational profile 5.3.2 Socio-economic profile 5.3.3 Environmental profile 5.3.4 Environmental improvements 5.3.5 Networks relevant to the enterprise 5.3.6 Conclusions 5.4 Foundry and Metal Engineering Enterprise, Buru Buru 5.4.1 Locational profile 5.4.2 Socio-economic profile

57 57 58 59 60 61 61 63 64 74 80 83 83 83 85

5.4.3 Environmental profile 5.4.4 Environmental improvements 5.4.5 Networks relevant to the enterprise 5.4.6 Conclusions 5.5 Sheet Metal Fabrication, Kamukunji 5.5.1 Locational profile 5.5.2 Socio-economic profile 5.5.3 Environmental profile 5.5.4 Environmental improvements 5.5.5 Networks relevant to the enterprise 5.5.6 Conclusions

86 92 94 96 97 97 99 102 107 109 112

Chapter 6 Discussion: Comparative Enterprise Analysis and Strategies to Support Pollution Control 6.1 Introduction 6.2 Enterprise Characteristics 6.2.1 Locational characteristics 6.2.2 Socio-economic characteristics 6.3 The Environmental Profile 6.3.1 Environmental impacts of small-scale metal enterprises 6.3.2 Cleaner production options 6.3.3 Constraints on the implementation of cleaner production 6.4 Evaluating the Institutional Environment 6.4.1 Industrial network 6.4.2 Policy network 6.4.3 Societal network 6.5 Directions for Pollution Control by Small-scale Industry in Kenya 6.5.1 Raising awareness and providing training 6.5.2 Providing financial and technical incentives 6.5.3 Organising small-scale enterprises into policy-making bodies 6.5.4 Co-ordinating environmental policy incentives and small-scale industry support programmes 6.6 Conclusions and Recommendations 6.6.1 Conclusions 6.6.2 Recommendations 6.6.3 The way forward

113 113 113 114 115 115 119 119 122 122 123 124 124 125 127 128 129 130 130 131 131

Chapter 7 Epilogue 7.1 Evaluation of the Research Methodology 7.1.1 Rationale for the study 7.1.2 Case studies 7.1.3 Network studies 7.2 Recommendations for Further Research

133 133 134 135 135

References

137

Appendices

145

List of Tables, Figures and Appendices Tables 4.1 4.2 4.3 5.1 5.2

Enterprise size breakdown in Kenya Number of expanding enterprises by initial and current size Some basic figures on Kenyan employment and the small-scale sector Bath operating conditions for nickel plating Environmental pollution related to the main waste streams of electroplating enterprise 5.3 Cleaner production options at the electroplating enterprise 5.4 Inputs and outputs of materials used in the melting process at the foundry 5.5 Environmental pollution related to the main waste streams of the foundry and metal engineering 5.6 Cleaner production options at the foundry and metal engineering enterprise 5.7 Environmental pollution related to the main waste streams of the sheet metal fabrication workshop 5.8 Cleaner production options at the sheet metal fabrication workshop 6.1 Socio-economic characteristics of the enterprises 6.2 The main waste types and occupational health hazards at the enterprises 6.3 Comparison of the main cleaner production options for the enterprises 6.4 Constraints on the implementation of cleaner production measures identified in Kenya

38 40 41 71 73 75 90 91 93 106 109 115 117 118 121

Figures 4.1 Networks encompassing the small-scale sector in Nairobi 5.1 Process steps at the electroplating enterprise 5.2 Nickel plating of scoops and the associated waste streams 5.3 Networks relevant to the electroplating enterprise 5.4 Process steps and the main waste streams of the foundry and metal engineering enterprise 5.5 Networks relevant to the foundry and metal engineering enterprise 5.6 Process steps and the main waste streams of sheet metal fabrication 5.7 Production of a bicycle carrier and the associated waste streams 5.8 Networks relevant to the sheet metal fabrication workshop

Appendices

54 66 70 81 89 95 103 105 109

1 Relevant Actors for Supportive Strategies Aimed at Small-scale Industries 2 Monitoring of Nickel Plating of Balance Scale Scoops 3 Monitoring Inputs and Outputs of the Foundry 4 Soil Pollution by Metals at Kamukunji.

145 155 157 160

Abbreviations BOD COD CUE DESIRE DND EIA EMS FIT FKE HABRI IHS ILO IMCE ITDG KAM KBS KENGO KIE KIRDI KNFJKA K-MAP KOSME K-REP MRTT&T MTTAT MEDP NCC NCCK NEAP NEMA NES NGO PRISMA SEDA SEFCO SEPSO SME SNV SSE SSI UNCHS UNDP

Biochemical Oxygen Demand Chemical Oxygen Demand Centre for the Urban Environment Demonstration in Small Industries for Reducing Waste Detoxification - Neutralisation - Dewatering Environmental Impact Assessment Environment Management Services Farmers Implements and Tools Federation of Kenyan Employers Housing and Building Research Institute Institute for Housing and Urban Development Studies International Labour Organisation Inter-Ministerial Committee on the Environment Intermediate Technology Development Group Kenya Association of Manufacturers Kenya Bureau of Standards Kenya Energy and Environment Organizations Kenya Industrial Estates Kenya Industrial Research and Development Institute Kenya National Federation of Jua Kali Associations Kenya Management Assistance Programme Kenya Organisation of Small and Medium Enterprises Kenya Rural Enterprise Programme Ministry of Research, Technical Training and Technology Ministry of Technical Training and Applied Technology Micro Enterprise Development Programme Nairobi City Council National Council of Churches of Kenya National Environmental Action Plan National Environment Management Authority National Environment Secretariat Non-Governmental Organisation Project Industrial Successes with Waste Prevention Small Enterprise Development Association Small Enterprise Finance Company Small Enterprise Professional Service Organisation Small and Medium Enterprises Stichting Nederlandse Vrijwilligers Small-scale Enterprise Small-scale Industry United Nations Centre for Human Settlements United Nations Development Programme

UNEP/IEO UNIDO UPAP WAU WHO

United Nations Environment Programme / Industry and Environment Office United Nations Industrial Development Organization Urban Poverty Alleviation Programme Wageningen Agricultural University World Health Organization

Summary Industrial development in many developing countries is accompanied by an increase in urban environmental pollution. The contribution of small-scale industry to pollution problems has to date been paid little attention. As a partial remedy to this situation, a research project was proposed to investigate the environmental impact of small-scale industrial enterprises in Nairobi, Kenya. Small-scale industries were defined as both micro-enterprises (1-9 employees) and small enterprises (10-50 employees), characterised by relatively simple manufacturing methods. For the purpose of this research, the focus was on manufacturing enterprises with an intermediate size of 5-20 employees. The resulting project was titled ‘Small-scale Industries and Environmental Pollution in Kenya’ and had three key objectives: • To review the critical constraints in the design and implementation of environmental measures in small-scale industry; • To analyse the existing and most appropriate alternative environmental policies, management strategies and technologies; and • To develop operational strategies and programmes for building commitment and capacity at the local level for environmental management. 1. Critical constraints in the design and implementation of environmental measures in small-scale industry A case study approach was used to access critical constraints at three small-scale metal working enterprises in Nairobi. The three enterprises differed according to size, location, the formality of organisation, their technological resource base and processes of production. At the first enterprise, electroplating formed the main production process. The enterprise is located in a relatively well-served industrial area. It produces a variety of plated metal objects and half-fabricates for various clients in the industrial and commercial sector. The electroplating process is highly polluting, particularly due to spills and the release of electroplating solutions to the drain. Waste water from the electroplating enterprise contains metals, cyanides and acids. The sewer treatment system in Nairobi is not designed to deal with such pollution streams, and the toxic chemicals eventually pollute the Nairobi and Athi rivers. From a health and safety perspective, workers are regularly exposed to toxic fumes and solutions. Although the entrepreneur is very much aware of these pollution problems, little has been done so far in the way of pollution control. The implementation of pollution control measures is constrained by a lack of incentives from government, the lack of technologies adapted to the scale of production and the absence of qualified personnel. The second enterprise studied was a metal foundry, located in a commercial estate which was provided to small enterprises by a national NGO. The products of the foundry include various aluminium and brass objects ranging from kitchen utensils to

x

Polution Control of Small-scale Metal Industries in Nairobi

spare parts for motor vehicles. These are produced from scrap metal, which is melted in a crucible and shaped (cast) in sand moulds. Most concerning from an environmental point of view are the use of kerosene, smoke produced by the foundry, and the dumping of metal slag and sand. Cleaner production could be accomplished by monitoring the production process in order to optimise the use of kerosene per kilogram of melted metal, by using better quality scrap to reduce air pollution, and by re-using of sand. The main constraints on the implementation of these measures are lack of time, space and technology as well as a lack of capital and poor access to appropriate credit facilities. The enterprise’s dependency on a small number of clients makes the entrepreneur risk adverse and therefore hesitant to change production processes or products in any way. The third enterprise studied was a sheet metal working enterprise, located amidst hundreds of other metal working enterprises. It is the smallest and most informal enterprise of the three under study. Facilities are poor and there is not even a proper roof to cover the workplace, which is crowded with people, tools and products. However, it is one of the few enterprises in the area to have access to electrical power. The enterprise produces various metal products, including bicycle carriers, metal brackets and door bolts. Environmental problems arise from the pollution of soil by metal particles, oil chemicals and some paint spills. There are considerable occupational health hazards from the high noise levels and the risk of injury from cuts. There is a general lack of awareness of the health impacts of working methods such as welding without masks. This makes the introduction of cleaner and safer working methods difficult, and suggests that the most significant contributor to change may be raising awareness and providing training programmes on these issues for the entrepreneurs and employees in the area. 2. Existing and most appropriate alternative environmental policies, management strategies and technologies Existing industrial and environmental policy in Kenya was analysed and - at the level of enterprises - possible improved production methods were researched. A promising concept for pollution control at small-scale enterprises is that of cleaner production. It is based on the ‘pollution prevention pays’ principle. Production processes which are more energy efficient, use fewer resources, and re-use waste materials not only reduce the environmental impact but may also save money. An assessment of the production processes at the enterprises and their waste streams highlighted several options for cleaner production and better housekeeping. At the electroplating enterprise the rinsing methods in particular could be improved to prevent the loss of considerable amounts of solution. Some of the toxic plating solutions could also be replaced by less toxic ones. For the foundry, a monitoring system was proposed and tested to assess the amount of kerosene used per kilogram of metal to be melted. This will improve the energy efficiency of the enterprise. At the sheet metal enterprise, it was found that most problems were linked to working conditions. Some simple protective measures were proposed. Industrial policy in Kenya has been enhanced by a growing focus on the small-scale sector during the last decade. Small-scale sector policy aims at creating an enabling

Summary

xi

environment for small businesses to operate and grow by taking away existing barriers and providing opportunities for training, by making credit more easily available and by developing industrial sites. This policy, however, has as yet not been very effective, as local authorities do not always operate in line with central government policy. Moreover, in the implementation phase, industrial policy fails to bridge the gap between the mostly informal small-scale sector and the formal large-scale industrial sector. Industrial pollution problems are covered within several environmental policy guidelines and regulations, but enforcement is not sufficient, especially concerning the small-scale industries. In Kenya, there is as yet no mutual co-operation between government and small-scale industry on pollution control. 3. Operational strategies and programmes for building commitment and capacity at the local level for environmental management A ‘network’ study was executed to reveal the actors and their mutual interactions within the institutional environment of small-scale enterprises in Nairobi. The networks which were studied were distinguished as the industrial, societal and policy networks. The research started with the perspective of the entrepreneurs and the interactions they have with the outside world. Interviews were then conducted with actors representing relevant NGOs, public authorities and industrial organisations. The outcome was that although there are many programmes and policy initiatives focused on the small-scale sector, there are gaps in the total effort to support smallscale industry and a lack of co-ordination between organisations serving the sector. The network study also revealed that there are possibilities to incorporate environmental issues into existing programmes dealing with the small-scale sector. An example of this would be the inclusion of environmentally sound production into training courses for small-scale entrepreneurs. Conclusions and recommendations The research confirmed the relevance of small-scale industry to urban environmental pollution problems. Small-scale industries were found to contribute to a wide range of environmental problems, including particularly serious pollution by toxic substances. The causes of pollution were found to be inefficient processes of production and the inability of small-scale industry to adopt treatment methods. The research indicated that some simple organisational or technical measures could be implemented at enterprise level, based on principles of cleaner production, to improve the environmental performance of small-scale industry. These measures could generate promising results in reducing pollution levels at low or negligible costs. However, the small-scale industries are constrained in implementing cleaner production by various attitudinal, organisational, technical and economic barriers. In order to support small-scale industry in environmental pollution abatement, it is important to understand their social and institutional contexts. Many barriers in implementing cleaner production options are derived from, and can only be dealt within, the networks encompassing the enterprises.

xii

Polution Control of Small-scale Metal Industries in Nairobi

Some of the key elements of a supportive strategy for encouraging improved environmental performance by small-scale industry were discussed at a seminar by the main actors in the field of industry and environment. These elements were: • Raising the awareness of entrepreneurs about environmental and safety issues, and educating employees and officials dealing with the small-scale sector; • Providing technical and financial incentives for cleaner production by small-scale industry; • Better representation and organisation of small-scale entrepreneurs in decision making bodies; and • Co-ordination of policy efforts and NGO programmes on small-scale industries and environmental issues. It is suggested that a group of key actors from government, relevant NGOs and industry who are involved in small-scale industry development and the environment design and implement a supportive strategy containing the above mentioned elements. The consensus expressed among these actors on the relevance of environmental pollution caused by small-scale industries in Nairobi can be considered as a starting point to initiate such a supportive strategy.

1 Introduction 1.1 Introduction This is the final report of the research project ‘Small-scale Industries and Environmental Pollution in Kenya’. It addresses the increasing impact on the urban environment of uncontrolled waste emissions by small-scale industry, and the resulting pollution and health problems. The combined environmental impact of many small-scale industries can be substantial as small-scale industries tend to have only limited possibilities for pollution control. The mere enforcement of environmental standards would threaten the economic development of small-scale industry and undermine much needed employment growth. This underlies the need to develop methods of pollution control for small-scale industry which nonetheless recognise economic conditions. As small-scale industries often lack the technological and financial capacity for environmental improvement without external assistance, there is a need for supportive strategies to assist small-scale industry in adopting cleaner production measures. A study of small-scale metal industries in Nairobi was carried out to investigate the main pollution problems, the options for pollution control and the required strategies to support more environmentally sound production. The findings of the project are presented in this report. In this chapter, the problem statement, research objectives and research activities are described. The final section provides an outline of the report.

1.2 Problem Statement Industrial pollution in many cities of developing countries is increasing rapidly. It affects existing natural resources such as rivers, land and air, and poses health risks to city inhabitants. To alleviate these risks, and in the interest of continued industrial and economic development, a solution must be found to the problem of industrial pollution. In most developing countries, large industries are responsible for much of the industrial pollution which occurs. But as small-scale industries grow in importance, their contribution to pollution cannot be ignored. Combined, the large number of small-scale industries have a substantial environmental impact. As most small-scale industries are situated in close proximity to residential areas, their impact on the living environment is all the worse. They cause local pollution and nuisance from the release of smoke, foul smells, and toxic contaminants to the air, soil, surface and groundwater.

2


Further, poor working conditions in the small-scale sector are a cause of occupational health hazards. Environmental policy targeting pollution caused by large industry exist in many countries. Generally lacking, however, is any coherent environmental policy, management strategy or legislation specifically focused on controlling pollution by small-scale industry. Scant attention has been given to the special needs of small-scale industry for innovative approaches to pollution control, particularly those which do not compromise the economic feasibility of industry or affect their ability to survive. This research project reflects the need to support small-scale industries to improve environmental standards and at the same time preserve small enterprises as an important source of employment. It requires simple, low-cost interventions and participation of the workers and employers. In particular, support is needed for small-scale industry to adopt cleaner production processes which are both economically feasible and environmentally efficient. The development of supportive strategies for pollution control by small-scale industries requires a detailed study of specific enterprises in their institutional setting. Nairobi, a city with many small-scale industries that are an important source of employment and causing considerable pollution, provides the opportunity for such a study.

1.3 Research Objectives The overall objective of the project was to contribute to the development of strategies that will simultaneously address the issues of environmental management, employment and growth within the context of small-scale industrial development in Kenya. To achieve this, the research project focused on the following goals: • Reviewing critical constraints in the design and implementation of environmental measures in small-scale industry. • Analysing the existing and most appropriate alternative environmental policies, management strategies and technologies. • Developing operational strategies and programmes for building commitment and capacity at the local level for environmental management. The outcome was intended to contribute to a further appreciation of the development of the small-scale industry sector, and an understanding of the possible impacts of introducing environmental measures on employment and the urban economy.

1.4 Research Activities

Introduction

3

The research project started in May 1995 with a literature review on small-scale industry and environmental pollution in developing countries. This resulted in a position paper (van Vliet and Frijns, 1995) outlining the project approach and methodology to be discussed among board members and counterparts of the project. In reviewing critical constraints in the design and implementation of environmental measures in small-scale industry, it was decided to conduct some in-depth studies of small-scale enterprises at different locations in Nairobi. Only after an extensive study of production processes, waste streams and of the socio-economic performance of the enterprises, could the constraints be understood. After an initial inventory of small enterprises at different industrial sites in Nairobi, the final selection of three case study enterprises was made in November 1995 and the first analyses and interviews were done. The three industries are working in the metal sector but differ in many other features such as their size, location, formality of organisation and production processes. Regular visits were made to the enterprises to discuss environmental options with entrepreneurs and to interview employees. Measurement programmes were set up at the studied enterprises with the objective of monitoring energy use and waste streams. These programmes continued over the following months. Interviews with government representatives and NGOs were conducted to analyse the existing and most appropriate alternative environmental policies and management strategies. From October 1996 on, the greatest emphasis was placed on developing operational strategies and programmes for building commitment and capacity for environmental management. Key actors in the fields of small-scale enterprise development and environmental policy were interviewed and ideas for strategies to support environmental management in the small-scale industrial sector were discussed. The project outcome was presented at a seminar in February 1997, not only to discuss the findings (Frijns et al, 1997), but also to get input from the seminar participants on the formulation of supportive strategies to assist the development of the small-scale industry sector while at the same time promoting more efficient, cleaner production. International experiences were compared to that of Kenya and possibilities to incorporate environmental considerations in existing small-scale sector projects and programmes were discussed. The parallel discussion sessions lead to the formulation of the main elements for supportive strategies. The seminar proceedings are presented in a separate document (Frijns and Malombe, 1997), of which the main findings are incorporated in this final report.

1.5 Structure of the Report The methodology of the study is described extensively in chapter 2. In an innovative approach, information on environmental problems and solutions of the small-scale industry sector are assessed using a case study approach.

4


Chapter 3 presents the theoretical framework of the study. It elaborates the socioscientific concepts on informality, small-scale enterprise development and environmental pollution related to the scale of production. Some promising strategies for pollution abatement by small-scale industry are discussed, from which hypotheses for further study are derived. Chapter 4 gives an overview of the institutional environment of Kenya. It presents the findings of the study of Kenyan industrial structure and environmental problems as well as related policy efforts that have been undertaken during the last decades. This is followed in chapter 5 by the findings of the case studies at the three selected enterprises. This chapter contains the main body of empirical data, encompassing the environmental, locational and socio-economic profiles of the studied enterprises, the options identified to control pollution, as well as the findings of the study of the social and institutional networks in which they participate. Chapter 6 presents the discussion of findings and the conclusion of the case studies. It discusses ways to overcome constraints in the implementation of cleaner production measures in the studied enterprises. The findings of the case studies are generalised for the small-scale industry sector in Kenya and overall conclusions and recommendations are presented. The recommendations are structured along the line of ‘supportive strategies towards environmental pollution control in small-scale industry’ which were partly derived from the concluding seminar in Nairobi . And finally, in chapter 7 the research methodology is evaluated and recommendations for further research are presented.

2 Methodology: In-depth Case Studies and Social Networks 2.1 Introduction As a methodology for the study on small-scale industries and environmental pollution, a qualitative case-study approach was conceived as most appropriate. A short description of the approach and its rationale is given in section 2.2. In the following sections, the criteria for selection of case studies (2.3), methods of data collection (2.4) and the derivation of supportive strategies are discussed (2.5).

2.2 Case study research Socio-scientific research on small-scale industries and environmental pollution can be done in several ways. On the one hand is quantitative research, where it is possible to take a representative sample of small enterprises, interview their managers and draw conclusions that are potentially valid for all other small enterprises in Nairobi or Kenya. However, only very general features, found at many small enterprises within the sample will turn out to be significant. Specific problems in dealing with environmental matters, due to, for instance, the unique location of an enterprise, cannot be dealt with. On the other hand is qualitative research via the in-depth study of a small number of enterprises to reveal their specific situation in dealing with environmental issues. Generalisation of findings to the sector as a whole, however, is difficult to make from such qualitative research.. Yin (1984, in Mol, 1995: 86), further explains the usefulness of case study research: “case study research is especially relevant if a `how’ or `why’ question is being asked about a contemporary set of events, over which the investigator has little or no control. Case study research is an empirical methodology to investigate events with unclear boundaries between the event and the context and for which several information sources are used”. Reviewing the research objectives of this project, as stated in the introductory chapter, qualitative case study research is most appropriate. The most relevant questions in this research are `how’ or `why’ questions such as how do entrepreneurs deal with environmental issues, how do they interact with other entrepreneurs and representatives of government, why do these enterprises utilise this kind of technology and why are they located in this area?. Yin’s remarks on unclear boundaries between the events to be analysed and the context where these events emerge, are valid in the case of small-scale

6


industry in Kenya. Besides the emphasis on the actual operation of selected enterprises, the focus is on how this operation is determined by the enterprises’ socio-economic context and vice versa. The actual operation of the case study enterprises is presented along the lines of three different ‘profiles’: an environmental, a locational and a socio-economic profile. The interactions between entrepreneurs and others within their socio-economic and policy environment are analysed within ‘network studies’. It is possible to distinguish different industrial, policy and societal networks for each of the enterprises. The research data for the case studies has been obtained through on-site surveys, interviews with entrepreneurs and employees and with representatives of Non Governmental Organisations (NGOs), governmental and other institutions.

2.3 The selection of the case studies In this study, small-scale industries include both micro-enterprises (1-9 employees) and small enterprises (10-50 employees), either operating in the informal or formal sector, and characterised by relatively simple manufacturing methods. Among these enterprises, the research focuses on manufacturing enterprises employing between 5 and 20 people. Although micro-enterprises with only 1 or 2 workers dominate industry in Kenya, these do not fall within the scope of this study. Most of these micro-enterprises operate in the commerce and trade sector and introduction of environmental programs in these very small enterprises requires a different approach. Very small home-based and self-employed enterprises, are considered less relevant and less accessible for environmental programs. It is the larger urban manufacturing enterprises of about 5-20 employees for which the development of environmental programmes is most relevant for Kenya, both in terms of pollution problems and options for improvement The selection of case studies has been made according the following criteria: • The size of the enterprise must be between 5 to 20 employees; • The operation of the enterprise should include some kind of manufacturing, with considerable environmental pollution or occupational health or safety risks; • There should be sufficient difference between the sample of case studies to make comparisons possible. Factors for differentiation may include the size, location, manufacturing process, and whether or not the enterprises operate within formal or informal economic contexts; • Last but not least, a pragmatic criterion requiring willingness on the part of the entrepreneur to co-operate in this study. After distributing information leaflets on the project, visits were made to several areas in Nairobi where small-scale enterprises are located. Finally, three enterprises were selected which met the criteria. All three enterprises operate within the metal sector, ranging in size from 5 to 14 employees. The processes, however, differ: one enterprise is specialised in electroplating, the second is a foundry and the third works in sheet metal fabrication.

Methodology

7

Environmental problems range from highly polluted waste water draining to open sewers and the emission of smoke and dust, to occupational health and safety problems. The enterprises are located in three different locations and are generally representative for the Kenyan urban areas. One enterprise is located in an area assigned to formal industry, the second operates in an commercial estate, and the last one is located in an informal area with hundreds of micro-enterprises. The economic context in which their businesses operate can be ranged from formal to informal.

2.4 Profiles and networks 2.4.1 Enterprise profiles The case studies involved data collection on environmental, geographical and socioeconomic aspects of the selected enterprises, for the purposes of producing environmental, locational and socio-economic profiles. Information was gathered during interviews with the entrepreneurs and employees and from visits to the enterprises. During the course of the research, the dynamics of business strategies, labour force and scales of production were also covered. Environmental profile An environmental profile aims to bring about understanding of the different production steps and their consequences for the environment and for the health and safety of the workers. The profile can be divided into a descriptive analysis of the production processes, its waste streams, environmental impacts and health and safety implications. During the formulation of each environmental profile the entrepreneur explained the production process and indicated where possible environmental problems emerged. Onsite surveys and measurements of production processes and waste streams by the researchers added to the information given by the entrepreneur or the employees. International literature on small-scale production and improved environmental management was also referenced. After the assessment of the production processes and relevant waste streams, several options for improvement were discussed with the entrepreneur. From the resulting list of possible improvements, some of the improvements were made immediately as they were simple to implement and instantly cost effective. Other options had a longer lead time before implementation while specific benefits and constraints were assessed. Apart from direct measures, the usefulness of programmes for monitoring were tested. Some environmental measures at industrial enterprises can be easily implemented if the economic benefits or costs are known to the entrepreneur. For this reason, the use of energy per amount of metal to be melted in the foundry and the drag-out quantity of electrolytic solution in the electroplating enterprise were measured. The results of this monitoring are presented in chapter 5.

8


Locational profile The objective of this profile is to grasp the geographical setting of the selected enterprises. From geographical data, options for implementing environmentally sound measures and constraints on these could be assessed. The data set includes the natural and socioeconomic characteristics of the areas and an assessment of the infrastructure and services available, including the reliability of provision of services. This information was obtained from interviews with the entrepreneur, from observations and from municipal maps. Socio-economic profile This data includes the history of the enterprise, information on the number of employees or workers, it has the kinds of employment it provides, the entrepreneur’s business strategy and marketing activities. This information is needed to grasp the economic potential of the enterprise, its potential flexibility in adopting new strategies, and the constraints that are faced in the actual operation of the enterprises. In considering opportunities for a more environmentally sound production , a good overview of the historical and current operation of the enterprises is needed. The data were obtained from semi-structured interviews with the entrepreneurs and updated during several visits thereafter. Structured interviews were also conducted with most of the current and former employees of each enterprise.

2.4.2 The analysis of networks Apart from the profiles derived from research at the enterprise level, this study is also concerned with the ‘embeddedness’ of small-scale industries. ‘Embeddedness’ refers to the fact that all economic actions and their outcomes are affected by actors’ relations with other actors and the structure of the overall network of relations which is continuously reconstructed during interaction. Analysing the embeddedness of small-scale enterprises begins with distinguishing different actor-networks, relevant for the objectives of this study. The work of Mol (1995) provides a methodology to analyse changing interactions within the institutional environment of an industrial sector as environmental consciousness emerges in industrial countries. This so-called ‘triad-network’ approach encompasses a study of the policy networks, industrial networks and societal networks. In order to have a full understanding of the ‘embeddedness’ of an industrial sector, it is necessary to comprehend the three interrelated networks. While their boundaries are quite fuzzy, they are analytically definable and provide us with a methodological perspective to analyse the continuities and transformations in the institutional environment of industrial firms. Industrial networks Mapping the industrial network requires that consideration be given to the inter-firm relationships and to relationships between firms and intermediate organisations such as

Methodology

9

branch associations and trade unions. These interactions can emerge from either a sectoral point of view and a regional one and sometimes from both. From a sectoral point of view, the analysis of inter-firm relations within one sector of industry is of main interest. Take for example the relationships between small-scale textile manufacturing firms and large-scale textile industries. In this analysis it is not so much important where the firms are located, but the sectoral inter-relationships could extend from the local level to the global level of the world market in textile industry. From a regional point of view, it is not the sector but the location of the industries that is the key to the analysis of interactions. A regional industrial network analysis indicates multidimensional inter-firm co-operation in industrial districts. A Sectoral Approach Inter-firm relationships can exist along horizontal and vertical lines. The vertical line is most important as it includes the line from raw materials, via production steps to products and consumption. Theoretically, these production stages could be handled by separate firms, with firms that have agreements or contracts with each other or with one large integrated firm. Each of these implies some ' vertical integration' , which means the ownership by one firm of sub-processing units, the exercising of influence by one firm over other firms in a vertical line or subcontracting practices (see Mol, 1995). The ‘strong’ vertical integration of firms ' was successful when the pace of technology change was relatively slow and production processes were well understood and standardised and production runs turned out large numbers of similar goods' (Powell, 1990 in Grabher, 1993: 16). Today, large scale vertical integration has serious weaknesses. These include an inability to respond quickly to competitive changes, resistance to process innovations that alter the relations between different stages of the production process, and the relative lack of willingness to introduce new products (Mariotti and Cainarca, 1986 in Grabher, 1993: 16). These weaknesses cause firms to rely increasingly on external contractors. This network of subcontractors can be imagined as a pyramid of first-tier suppliers at the top and a large bottom of small enterprises. These sub-subcontractors are ready to submit to outside pressures and accept long-term risks and cutbacks to achieve existing goals. ' Their ' passive pliability' is very different from the ' active versatility'for which small firms are commonly celebrated'(Grabher, 1993: 18). The industrial network also consists of horizontal integration in two ways: interaction between competing firms in the same (sub-)sector and interaction via branch organisations (Mol, 1995:76). Between competing firms, integration and interaction can consist of take-overs and joint-ventures, but also research and development pacts, joint marketing and licensing agreements. Branch associations could be considered as ' relative autonomous co-ordinating institutions (with distinct rules and resources), next to international markets, regulatory agencies and multinational companies'(Mol, 1995: 78). They have a task in shaping the industrial structure, regulating the labour market, co-ordinating chains of

10


production, regulating quality and health standards and negotiating with key state organisations. Branch associations thus form a bridge between individual firms and the policy network. Interactions with financiers, insurance companies and autonomous research institutes fall neither in the vertical nor horizontal line, but are also part of the industrial network. A Regional Approach In many developing countries, it can be of less relevance to focus on sectoral lines of production, for there may be a dual industrial structure where interaction between small-scale industrial enterprises and modern large-scale enterprises hardly exists. It is then more relevant to consider not the sector, but the ' place as the foundation for efficient and effective production apparatuses'(Storper and Scott, in Grabher, 1993: 20). Here the interactions between firms within one industrial district are considered. These interactions could be part of, and benefit from, the above mentioned horizontal integration, if the firms are producing the same goods or services. But it is also possible that small firms of different sectors could benefit from each other by operating in the same industrial area. By-products from one manufacturing firm could become a resource for operation of another. Infrastructure, such as treatment facilities could be shared by different firms in close proximity to each other. Many industrial districts in the cities of developing countries do not demonstrate so much a sectoral homogeneity as homogeneity in enterprise size. The size of the enterprise can be as relevant a binding element in inter-firm relations as the products firms produce. Thus an industrial network analysis must incorporate both sectoral and regional approaches. The policy network Policy networks concern the relationships between industrial sectors and government institutions. All policy incentives in supporting or regulating industrial sectors are part of the rules and resources which are structured and negotiated within this network. It is therefore important to identify the relevant actors and institutions which determine the industrial policy, their positions and interactions. Government-industry relationships can take many more different forms than interfirm relationships. The particular form depends on the economic and political importance of the industrial sector, the industry policy of a country, the existence of informal or patronage relationships between government officials and topentrepreneurs, etc. The societal network This network consists of the small-scale enterprises and their representative institutions from the industrial network on the one hand, and non- governmental organisations dealing with different features of small-scale production and consumption on the other.

Methodology

11

Among these organisations are the labour, environmental, consumer and local citizens groups. The involvement of these groups in the network depends on the issues which are at stake at a certain moment. The interactions between industrial organisations and NGOs can be many-faced, ranging from direct collaboration (e.g. on contracts of employment by labour organisations) to indirectly influencing one another’s actions (e.g. by manipulating public opinion via environmental movements). Tools for analysing the networks The gathering of data related to network interactions, for this study started with an interview of the entrepreneur of each enterprise. This provided information on the entrepreneurs’ relations with actors outside the enterprise (e.g. customers, suppliers, colleagues, civil servants and NGO representatives) which in turn provided the starting point for interviewing some of the actors mentioned. For reasons of privacy, no attempt was made to contact direct customers or suppliers. The interviews focused on possibilities for environmental improvements at enterprise level on the one hand, and on policy or NGO level on the other. A key issue in the interviews was the question of how these actors interact with small-scale entrepreneurs, and how they can be of help in supporting these enterprises in improving environmental the management of their businesses. There are many programmes, projects and policy initiatives aimed at supporting smallscale industries in Kenya, and various other programmes aimed at encouraging environmental improvement in urban areas. Key actors implementing these programmes were interviewed on the one hand to complete the analysis of the institutional context, and also to engage them in a supportive strategy for small-scale industries and environmental pollution abatement. Documents relating to industry, the small-scale sector and environmental policy in Kenya were reviewed, both from NGOs and Kenyan government. An extensive literature study was conducted to understand the dynamics of small-scale industries and the informal sector in general, their possible contribution to environmental pollution as well as appropriate solutions for pollution control. This review has been reported separately (van Vliet and Frijns, 1995; van Vliet and Frijns, 1996) and is also summarised in the following chapters of this report.

2.5 Formulating supportive strategies In order to formulate ‘supportive strategies’ for small-scale industries to control pollution and avoid occupational health problems, other international experiences were reviewed. Some promising strategies have been tested in India and other some Newly Industrialising Countries in Southeast Asia. The opportunity to implement these strategies in Kenya was evaluated. A seminar was organised to inform all relevant actors of the results of the study and to formulate and discuss joint strategies for pollution abatement in the small-scale industrial sector in Kenya. A large proportion of the interviewees, including the entrepreneurs, attended the seminar, as well as researchers working in related fields. The audience

12


comprised people who were in one way or the other involved in either small enterprise development or in environmental issues in Kenya. At the seminar, papers from the Kenyan government, NGOs and industrial organisations were presented about options for supporting small-scale industries in environmental pollution abatement strategies. While all relevant actors where gathered together, the issue of establishing a new supportive group of actors to take up the issue of small-scale industries and environmental pollution in Nairobi in the near future was discussed.

3 Small-scale Enterprises and Pollution Abatement: A Theoretical Framework 3.1 Introduction Industrialisation is perceived as the motor for economic growth and development leading to employment creation, expanding markets and the earning of foreign revenue. The contribution of the small-scale sector, though initially ignored, has become a focal point of the development policies of many developing countries. The industrial transformation currently taking place in these countries requires proper control of the environmental problems which result from this transformation. The objectives of economic growth, through small enterprise development, and environmental management are in general conflicting and pose a dilemma to urban authorities. Pollution control efforts need to be incorporated in the general management policy of the urban environment. Acknowledging that small-scale industry contributes to environmental deterioration and that this sector has limited possibilities to combat pollution, specific measures are required to enable small-scale industry to adjust their production processes to be more environmentally sound. This chapter discusses possible measures for pollution control of small-scale industry. A literature review provides the theoretical framework and generates hypotheses for study. An overview is provided of urban environmental management practices, and the contribution of small-scale industry to economic development is discussed. The first question addressed is what is meant by small-scale as compared with large-scale production?

3.2 Small-scale Industries and Economic Development 3.2.1 Informality and the small-scale sector The terms ' small-scale'and ' informal'are both used in the literature to describe the same kind of small business activities or manufacturing enterprises. There now seems to be a preference for the term ' small-scale sector'amongst academics and authors, but ' informal sector'and ' informality'continue to be used. A mission of the International Labour Organisation (ILO) to Kenya in 1972 contributed to the world-wide understanding of the characteristics and relevance of the ’informal sector’. It drew attention to the many methods used by urban dwellers to earn a living through work opportunities outside the modern, industrial framework (ILO, 1972). According to Livingstone (1991: 651-652), the ' important contribution by coining of the term ' informal sector'was in drawing attention to a set of activities which had been

14


neglected in terms of statistical data collection, analytical attention, and positive promotional policies’. But analytically, it is an inconvenient term. Some have suggested that all activities or enterprises which operate impervious to government regulations should be called ' informal' . But most of these firms do pay taxes, like custom duties on imports. It is inaccurate to define ' informal'as ' illegal' , because it will incriminate millions of people making their living out of small businesses. If activities or enterprises lack the recognition of authorities, they are not automatically illegal. Most ' informal'activities are implicitly allowed. Some authors define informality not as a sector but as a social and historical process (see Meagher, 1995). In this approach, the informal forms of production are seen as part of capital' s search for flexibility in the use of labour. Research has been done on the features of differentiation within the sector, the linkages to formal industry and the role of the state towards the informal sector. But this is more of an approach than a definition of the informal sector. In this report, the term ' small-scale industry'(SSI) is used rather than ' informal sector' mainly because of the complications mentioned above in defining the term. The formulation of policies promoting the ' informal sector' , which is undertaken in the following chapters of this report, by definition makes the sector less ' informal' . According to Bartone and Benavides (1993: 1), ' SSIs include traditional (artisan) and informal sector micro-enterprises in addition to formal small-scale enterprises. Typical SSIs are characterised by simple and labour-intensive manufacturing goods' . However, every attempt to define small-scale industry must pay attention to the relative nature of ' small-scale'versus ' large-scale'and to the related question: small in what way? In current literature on small-scale industry, consensus appears to have been reached in answering these questions. The size of industrial enterprises, at least in developing countries, can best be measured by the number of employees. Other criteria, such as economic output or size of capital investment are also important, but they do not lead to analytically satisfactory categories of industry. Among authors on this issue, there is a broad agreement on the number of workers employed in a small enterprise: more than 10 and less than 50 workers (see Anderson, 1982; Uribe-Echevarría, 1991; Bartone and Benavides, 1993; Teszler, 1993; Fafchamps, 1994; Mead, 1994; Parker and Torres, 1994). Enterprises employing less than 10 workers are called micro-enterprises. Whilst not having a defining role, other characteristics of small enterprises may add to a better description of the small-scale sector. Employment and labour conditions Although the number of employees or workers seems to be a ' solid'criterion, in practice it can be difficult to measure. Workers can be classified as anything from full-time, salaried employees to part-time workers, sometimes not even paid for their work, as in the case of family labour. Underpaid and unpaid apprentices are very common in the small-scale sector. Most of the labourers do not have formal education and get their training ' on the job' . The small-scale sector in developing countries has a relatively labour intensive character. This provides policy makers with the justification to address far reaching goals of job creation through this sector. Unfortunately, job creation alone does not lead to an improvement of productivity or sustainable performance. Evidence in Sub-Saharan

Small-scale Enterprises and Pollution Abatement

15

Africa has shown that employment growth does not result from the growth of the existing small enterprises, but from the growth of the number of small enterprises (Fafchamps, 1994). The labour conditions in most small-scale industries are generally poor with long working hours, low remuneration and poor health and safety standards. Workers in smallscale industries usually receive no protection through labour legislation and are not organised into trade unions (see Anderson, 1982; and Stewart et al, 1990). Type of entrepreneurship The types of entrepreneurship within the small-scale sector rank from ' highly mobile survivalist self-employment' , encompassing own-account workers and working proprietors of un-incorporated enterprises (House et al, 1993), to well established specialised entrepreneurs. The former category include the poorest people who are subsisting in urban areas. Their capital resources are limited and the level of investment is low. These enterprises partly fill the gap of an inadequate social security system in most Third World cities, although many remain operating at a survivalist and insecure level. It is, however, the most dynamic sector due to its dependency on economic conditions. In contrast, the well established enterprises are characterised by more stable performance and specialised owners (Teszler, 1993). Technology The types of technology used in small-scale industry range from traditional artisan or ' appropriate'technologies to modern western technologies, as used in large-scale modern industries. Small-scale industry is generally believed to be more innovative in product development and in utilising new technologies. The machinery and tools constructed are sometimes of amazing ingenuity. New technologies appropriate to the scale and labour intensive character of the small-scale sector, however, hardly exist, and down-scaling of ' modern'technologies is often not the answer. At a smaller scale different technological criteria apply and simplicity of construction, use of available fuels and ease of operation become major considerations. However ingenious some of them may be, many small enterprises face difficulties in resolving their technological problems. Adequate technical assistance from outside the enterprise is therefore required. Small-scale entrepreneurs seldom have the formal training or educational background which is needed for the use of those technologies. Surveys of ILO and the World Bank in several countries have shown that apprenticeship experience in large modern enterprises is an important vehicle through which small entrepreneurs can acquire training in technology adaptation and innovation (Bhalla, 1992). Research and Development facilities are unlikely to exist in small-scale industries because of the necessity for economies of scale. Furthermore, changes in production technology are easily copied by other small entrepreneurs, for there is seldom access to patents. Many development projects focus on the development and diffusion of ' appropriate technologies'to the small-scale sector. These technologies are adjusted to the scale of production, and are easy to make and repair at local level, independent of western technology suppliers.

16


Teszler (1993) has proposed a combination of different features of enterprises which make sense for analysing the small-scale sector. In each category there are differences in access to new technologies, level of organisation within the sector, links to formal institutions and interest in (environmental) options to change production: • In the micro-enterprise category (less than 10 people employed) there are: - individual self-employment enterprises; - enterprises consisting of collective or group self-employment; - home-based enterprises. • In the small enterprise category (more than 10 and less than 50 workers) there are: - enterprises using traditional technology, switching over to modern technology; - enterprises using modern technology, increasingly linking up with large-scale industry. In this report, small-scale industries are defined as both micro-enterprises (1-9 employees) and small enterprises (10-50 employees), characterised by relatively simple manufacturing methods. The focus of this study is manufacturing enterprises with an intermediate size of 5-20 employees.

3.2.2 Expectations of economic potential The importance and even the existence of the informal sector in the economic functioning of Third World cities was originally completely ignored. During the last three decades, however, the small-scale sector or informal sector has attracted the attention of several economic schools of thought, and small enterprises have come to be seen as an important tool in the process of economic development in developing countries. UNDP (1988 in Teszler, 1993: 27) generalises the significance of small-scale industry for economic and social development, as follows: • High and middle-income developing countries and newly industrialising countries have a reasonably well-developed industrial structure, in which the small, modern enterprise has an important role to play. There is a tendency for micro-enterprises to disappear. • In low-income countries, effective demand will be insufficient to warrant large-scale manufacturing. Here, small industry, both traditional as well as modern, should form the backbone for structural change. Over time, an impressive list of objectives has driven policy on small-scale industry, including efficient factor utilisation, employment generation, entrepreneurial development, democratisation and environmental soundness. Recently, the emergence of flexible specialisation of production networks in industrial countries has provided new ground for innovative policy orientation. Potentials Uribe-Echevarría (1991) suggests that the expectation of economic potential in smallscale industry stems from three main rationale: the creation of employment; an increase in entrepreneurship; and advantages of flexibility in small-scale industry.


17

Development strategies in the seventies were based on the recognition of the limits of ' modernisation'in achieving social development as well as economic growth. The new paradigm advocated ' balanced development'as opposed to selective modernisation. Small enterprises were seen as most efficient in realising a gradual economic transformation. The adoption of technologies appropriate to the advantages of ' smallness'was supported. It was expected that such a strategy for small enterprises would create more direct employment for a given level of capital investment than large-scale, capital intensive industries. Another view focuses on the role of management skills and entrepreneurship in development processes based on Schumpetarian thinking. This means that small-scale industry is seen as a seed-bed for medium- and large-scale industry. The skills acquired in the small-scale sector were expected to be indispensable for building up modern industry, and the growth of modern, large-scale enterprises out of these small enterprises was expected. The assumed advantages of flexibility in productive organisation is the third rationale. Recent technological and organisational breakthroughs in the industrialised countries have made smaller plants efficient and improved the scope for co-ordination between specialised production units. The saturation of traditional mass consumer markets, the differentiation of demand and the utilisation of the possibilities created by new information technology have given rise to more flexible forms of industrial organisation (Uribe-Echevarría, 1991). This is widening the potential for small-scale production systems, at least in industrialised countries, which some policy makers expect will provide a breakthrough on problems brought about by industrialisation in developing counties. There have been reports on the comparative advantage of flexible production in regional clusters of small firms (see Pedersen et al, 1994). Clusters of small enterprises can, through subcontracting, co-operation and technology diffusion, compete with large enterprises because of their flexibility in production. Examples of these clusters can be found in Italy (footwear manufacturing) and the newly industrialising countries of SouthEast Asia. Limitations Whether the three rationale for economic potential are valid for small enterprise development in developing countries is questioned by Uribe-Echevarría (1991). Concerning the first rationale, there is not a great deal of evidence that small-scale industries are more efficiently producers than large-scale industries. Small-scale industries use more labour per unit of product, but they do not always use less capital per unit of product. Claims about the generation of employment by small-scale industries need to be better justified. For a fixed stock of capital, small-scale industries can create more employment as they generally use less capital per job. But indirect job creation by small-scale industries is fairly small compared with the impact of investing in large-scale industries. The quality of employment should also be taken into account as small-scale industries may only remain feasible by using cheap labour and avoiding investment in equipment and protective gear. Anderson (1982) argues that the bias of job-creation programmes towards the small-scale sector is unnecessarily constraining on what the programmes might otherwise accomplish. The productivity and sustainability of the small-scale sector is not improved only by creating more low income jobs More attention should be paid to projects generating a satisfactory return on investment, whether or not

18


an expansion of employment or of fixed assets is involved. Furthermore, the employment issue in the small-scale sector relates not only to the lack of employment but also to poor conditions of employment, such as long working hours, low remuneration and poor health and safety standards. The second rationale, that small-scale industries can act as a seed-bed for modern entrepreneurship, can also be questioned. The majority of small-scale industries are concerned with residual economic activities or survivalist strategies. The entrepreneurs are poor and sometimes not even registered as entrepreneurs. These factors limit the transferability of entrepreneurship and management skills to formal ' modern'industries. Nevertheless, learning by doing and on-the-job-training in the small-scale sector are for many workers their only educational opportunity. This can hardly be considered a seedbed for modern entrepreneurship, although it may improve entrepreneurship in the ’traditional’ small-scale sector itself. A related hypothesis is that of the growth of small enterprises to larger enterprises in a process of economic development. In practice, the large-scale sector often emerges independently of previous existing small- and mediumscale sectors. The main reason for this is that the different types of enterprises operate under different economic conditions. In Sub-Saharan Africa, for example, there is a large gap between the modern large-scale sector and the small-scale sector and this gap is not filled by medium-sized enterprises. This is known in most Sub-Saharan African countries as the ' Missing Middle'(Fafchamps, 1994). The dual industrial structure can be explained by the fact that large African firms receive greater returns from size and government policies in general, while small enterprises take advantage of special market niches, lower labour costs and their ability to bypass certain laws and regulations. Medium-sized firms are typically too small to capture returns on size or to qualify for direct government support, and they are too large to avoid laws and regulations (Fafchamps, 1994: 15-16). So in many cases, not only in Africa but also in Latin America, micro-enterprises have only played a very small role in generating the modern large-scale sector (UribeEchevarría, 1991). Evidence for the third rationale, the ‘collective efficiency’ benefits of spatial proximity of firms, is generated in developed countries and the newly industrialised countries. The capacity to create and develop small and medium scaled production networks independently of large-scale nuclei in less developed countries is still unclear and little is known about the conditions that make them possible (Uribe-Echevarría, 1991). However, recent examples of networks of small firms in African countries such as Burkina Faso, Ghana, Kenya, and Tanzania show that co-operation between small enterprises is becoming an important feature of economic relations in developing countries (see McCormick and Pedersen, 1996; and van Dijk and Rabellotti, 1997). Cooperation and economic interaction is not only confined by spatial networks but exists also through subcontracting, traders and middle-men, branch associations and ethnic relationships. McCormick distinguishes two types of networks: organisational networks in which firms relate to each other as organisations, and entrepreneurial networks that link firm owners with each other. Entrepreneurial networks depend on the business owner and include social and professional contacts, including family, ethnic group, class and neighbours. (McCormick and Pedersen, 1996: 306). Such networks are often based on trust. The importance of networks and trust can particularly be observed in cases of credit and technology diffusion (van Dijk and Rabellotti, 1997: 3). Although the rationale


19

behind the emergence of small enterprise networks differs between industrialised and developing countries, networks of small enterprises have also emerged in the developing countries. There are many more approaches to understanding the nature of small-scale firms. Lyberaki and Smyth (1990) provide a good overview of the different perceptions, viewing the small-scale sector as either autonomous or dependent, marginal or integrated, or modern or traditional. It is from these different perceptions that the confusion over growth and its constraints arises. The generation of employment, alleged flexibility, decentralisation of production, and other often cited potential economic benefits of the small-scale sector are likewise questioned. The issue raised by Lyberaki and Smyth is that an excessive preoccupation with the scale of enterprises and a vague notion of growth potential has prevented a more comprehensive analysis which would take into account both the internal configuration of the enterprise and its economic and social context. Moreover, it is not the scale of production units which determines the industrialisation process of countries. The multiplicity of approaches indicates that smallscale industries cannot be considered as a unified category, and that our expectations of and support policies towards the small-scale sector should vary among the different types, locations and industrial sectors. Support The reasoning which has been behind the policy support given to small-scale industry during the last decades, has thus perhaps not been as realistic as originally thought. In general, one should be very careful about extrapolating expectations of industrial development in developing countries based on experience from western countries. Despite a lack of strong evidence that the economic potential of small-scale industries will be realised, there are several motives for maintaining a supportive policy. Although a contribution to modernisation or an increase in large-scale industries cannot always be expected, small-scale industries in rapidly growing urban centres do absorb many unskilled labourers who would otherwise be unable to find employment. Additionally, in most developing countries markets remain very small for many intermediate goods and services, and small firms do have a role to play in economic development (Fafchamps, 1994). In urban areas, self-employment in (home-based) micro-enterprises and poorly paid wage labour in small enterprises will most likely remain important sources of income. Support for these sectors is still needed, not for goals ' outside'the small-scale sectors (like the idea of being a seed-bed for entrepreneurship) but to improve efficiency, working and environmental conditions, and access to appropriate technology within the sector.

3.2.3 Supportive policies for small enterprise development A supportive policy for the small-scale sector could best focus on direct support by creating favourable conditions on the supply-side or on the demand-side of the market for small-scale industry products. Traditional policies have focused on the supply-side and on the provision of training, credit facilities and infrastructure.

20


Supply-side policies Supply-side policies focus on factor markets (labour, capital, and technology input) rather than product markets. This is an institutional approach to small enterprise development through which a wide range of facilities and services is provided to the average smallscale firm. But the limits set by budget ceilings and the availability of extension staff are such that only a small number of small-scale industries can be reached effectively (Teszler, 1993). Supply-side policies are mainly implemented in a project context, with the advantage that specific objectives for selected firms can be achieved. Demand-side policies The demand-side of the market is addressed by Teszler (1993: 31): “Not least because of disappointing results achieved by attempting direct assistance to small-scale enterprises and because of the scarcity of public-sector means imposed by structural adjustment programmes, increasing confidence is being placed in policies aimed at improving the economic and social environment in which such firms operate: in other words policies increasing effective demands”. Teszler suggests that policies aimed at increasing effective demand for small-scale enterprise products and the broad development of small-scale industries should focus on: • Stimulating income increases (in rural areas, through the development of agriculture); • Eliminating the bias of existing institutions against smaller economic units; and • Improving physical and social infrastructure, which benefits the entire economy. These measures offer better coverage than could be achieved by any institution with a project-based approach towards a division of the small-scale sector, and these measures do not discriminate against any enterprise. They also leave the self-esteem of the entrepreneur intact. In practice there is only limited room for manoeuvring to change either supply or demand conditions. For instance, a call for income redistribution is a demand-side policy goal which could increase the markets for small-scale industries products but it often implies a totally different national development strategy.

3.3 Industrial Pollution and Environmental Management in Developing Countries 3.3.1 Environmental impacts of small-scale production Industrial pollution in many cities of developing countries is increasing rapidly. It affects existing natural resources such as rivers, land and air, and poses health risks to city inhabitants. To alleviate these risks, and in the interest of continued industrial and economic development, a solution must be found to the problem of industrial pollution. The situation calls for innovative, environmentally sound technology, policy and management strategies.


21

In general, large industries are responsible for much of the pollution observed. In terms of pollution load, many of the small-scale industries are not major producers of hazardous waste, as compared to the large-scale industries. However, some are almost certainly contributing to environmental pollution and serious exposure to occupational health risks. But small-scale industries are gaining importance and their contribution to pollution problems cannot be ignored. Small-scale industries contribute to water and land pollution through their liquid effluents and solid wastes, and many small enterprises, such as mills and smelters, contribute to air pollution (Kent, 1991). Combined, the large number of small-scale industries have a substantial environmental impact. As most smallscale industries are situated in close proximity to residential areas, their impact on the living environment is all the worse. They cause local pollution and nuisance from the release of smoke, foul smells, and toxic contaminants to the air, soil, surface and groundwater, such as chrome from tanneries and oil from car garages. Further, poor working conditions in the small-scale sector are a cause of occupational health hazards. Labour conditions are also affected by working with hazardous materials. Little is known about the scale of production and level of formality of enterprises in relation to their environmental impact and the consequences for pollution abatement. Some general remarks about small-scale industry as opposed to large-scale industry can be derived from an Urban Management Program survey on small-scale and cottage industries in India, Mexico, Peru and Zimbabwe (Bartone and Benavides, 1993): • Small-scale industries are generally not the major polluters in their respective industrial sector, due to their small percentage of total output; • Small-scale industries pollute more per unit of output due to their inefficient production, inferior equipment, poor housekeeping and inability to adopt treatment technologies (due to lack of finances, space, experience and qualified operators); • Small-scale industries are not responsible for the bulk of organic water pollution and air pollution. The problem is toxic waste from specific enterprises; and • Small-scale industries cause local nuisance (including occupational health problems) due to their dispersed and residential location. Their location makes monitoring and finding common solutions difficult. Small-scale industries face several constraints in controlling pollution. Some of these constraints derive from the inappropriateness of some environmental measures for the small-scale sector, others derive from problems of implementation. Management of environmental problems is hindered by a lack of skill and knowledge about pollution problems within the small-scale industry sector. Small-scale entrepreneurs generally lack access to environmentally sound technologies which are compatible to the scale of the enterprise. The achievement of pollution control is hampered by the lack of effective monitoring, which fails not only in the detection of small polluters, but also in insuring that abatement measures are working properly. In addition, small-scale industries typically have limited space for the installation of treatment systems and economic problems can prevent the installation and operation of pollution control facilities.

3.3.2 Urban environmental management

22


Pollution by small-scale industry is only one of the sources of urban environmental deterioration, and its abatement must be incorporated in wider urban environmental management efforts. Increased urbanisation and industrialisation have resulted in serious city-wide environmental problems. The most critical and immediate problems facing urban areas are the health impacts of pollution that derive from unsafe and inadequate water supplies, the inadequate provision of sanitation, drainage and solid waste services, poor urban and industrial waste management, hazardous working conditions, and the ineffective control of air and water pollution. The current poor state of the urban environment has, according to Hardoy et al (1992), to do with government failures to control industrial pollution and to ensure that citydwellers have the basic infrastructure and services essential for health and a decent living environment. Local governments are typically poorly equipped to operate infrastructure systems and manage environmental problems. Local government officials are ill prepared to confront these responsibilities due to a lack of resources, institutional constraints and insufficient capacity. Decentralisation and partnerships In addressing urban environmental degradation it is necessary for local governments to be strengthened and for them to enter into partnerships with other actors. Partnerships between municipal authorities, local NGOs and community organisations have often proven more cost-effective than conventional approaches. Bartone et al (1994) listed four principal action areas: • Strengthening governance by mobilising public support and participation to create a constituency for sustained environmental improvement, improving institutional capacity for identifying and addressing environmental problems, and establishing clearly defined institutional arrangements for urban environmental management; • Improving policies via more comprehensive, efficient and effective regulatory, economic and environmental health interventions; • Improving urban operations by upgrading the management and delivery of urban environmental services and infrastructure, emphasising strategic investments and financing, and establishing public-private partnerships; and • Improving information and understanding through the collection of environmental data and use of analytical frameworks to understand problems, prioritise them, and design environmental programmes to resolve them. Thus, capacity building at the urban level, for both the public and private sector and NGOs, is considered to be critical to manage the urban environment. A recent research project aimed at capacity building for urban environmental management in Bolivia, India, Peru and Senegal (Edelman and Mengers, 1997) revealed that complex environmental problems cannot be addressed adequately without decentralisation of government to the municipal level and the proper functioning of the democratic process for decision-making involving the relevant stakeholders. Decentralisation and democratic decision-making need to be backed by a legal framework within which the mandates and responsibilities of stakeholders are clarified. Equally important is the availability of financial resources for planning and implementation, and willingness and political and administrative


23

commitment by all stakeholders to work in partnerships is required. In the control of environmental pollution, the commitment and capacity of local governments and other environmental agencies seems more important than a well defined legal framework. It is within the context of the challenges faced by the cities of developing countries that industrial pollution control must be developed. A decentralised and participatory approach will be required for this specific urban environmental problem. Environment versus employment The increase in industrial pollution urgently calls for enforcement of emission standards. However, these environmental measures and their subsequent enforcement can only be effective for those industries which are in a position to adapt their production processes, and which have access to the required capital and expertise. Urban environmental management needs to seek a balance between concern for the environment and employment. The need for environmental improvements versus the imperative of rapid economic growth is an important dilemma which decision-makers face when trying to solve pollution problems. The provision of jobs is critical to the survival of many governments, and cost-generating environmental protection requirements are seen as endangering them. This means that controlling wastewater disposal and hazardous wastes, for example, whatever their perceived benefits to the population, are given a low priority indeed. However, there are several examples were measures designed to protect the environment have a positive effect on employment, for example in water and sewage works, recycling and waste management, pollution abatement, administration, training, and research and development (Teerlink and Frank, 1993). In particular, the collection and recycling of materials such as paper, glass and metal by the urban informal sector positively contributes to the environment, employment and the saving of resources (Sethuraman, 1992). In the case of industrial pollution, environmental management can be interpreted as a modernisation of the production process and thus of industrial development. It results in securing employment for a longer life-time, especially if this employment meets higher standards in terms of healthy working conditions. It is now more widely accepted that pollution prevention and economic development do not have to be contradictory but can be mutually supportive. At present, many industries have serious problems with waste disposal and continue to release untreated waste into municipal sewers and rivers. Improved production is a necessity for many industries but unfortunately small enterprises often lack the technological and financial capacity to do so without external assistance.

3.3.3 Pollution control principles and policy instruments Efficient and effective environmental management calls for a mix of policy instruments, including regulatory, economic and voluntary instruments. Initially in Western countries, environmental protection strategies were of a command-and-control nature using regulatory instruments and economic incentives based on the polluter pays principle. Industries tended to comply with the government environmental standards through the use of add-on technologies. This is still the dominant approach, but both government and industry have realised that control and enforcement can be difficult, and that compliance

24


can conflict with economic interests. A complementary approach occurred based on government-industry interaction and aimed at self-regulation of industry. Some experience has been achieved with the use of covenants, environmental auditing, product certification, environmental co-makership, etc. (see Fischer and Schot, 1993). From the mid-1980s onwards, industry in the Netherlands has signed over 100 covenants on environmental and energy issues, covering 80-90% of industrial emissions (Mol, 1995: 363). Government policy formulation has been geared towards providing conducive conditions which enable industries to better take into account environmental considerations. Industries are in the process of modernising from conventional ' end-ofpipe'technologies to cleaner production aimed at pollution prevention. Industry and government are moving beyond the prevention of pollution at source to incorporate environmental concerns throughout the life cycle of a product, from raw material extraction to waste disposal. By considering the entire product life cycle, the producer’s responsibility is extended beyond product manufacture to product caring. It is not only government regulations but also influence and pressure from the market, either by industrial customers or final consumers, that drives industrial producers to produce cleaner products. Enterprises in the industrialised countries increasingly are adopting strategies aimed at a more ecological, rational and efficient (re)use of materials, energy and natural resources. Examples of industrial restructuring strategies include environmental management systems (Welford, 1996), integrated chain management, and industrial complexing aimed at waste exchange (Nemerow, 1995). It has even been suggested that industries be regarded as ecosystems (Allenby and Richards, 1994) or a metabolism (Ayres and Simonis, 1994). All such initiatives can be brought under the wider concept of ' ecological modernisation'(see Spaargaren and Mol, 1992; Weale, 1992; and Mol, 1995). Ecological modernisation can be interpreted as the ecological restructuring of processes of production and consumption. It advocates that decisions on investment, R&D, product innovation or other business strategies should be made not only from an economic perspective but also from an ecological one. The ecological switch of the industrialisation process will be encouraged by the development of new technologies that benefit the environment, by placing an economic value on nature and environmental resources, and by a political modernisation of regulatory and executive bodies of the government. For the latter this includes a switch from command-and-control regulation towards more negotiative, enabling and facilitating strategies of governance. The process of ecological modernisation is already taking place to some extent in the industrialised countries. There remains, however, the question as to whether the concept of ecological modernisation is of any use in developing countries. Mol (1995: 55) stated that: “the ecological modernisation theory is based on certain presumptions which do not always apply to these developing regions, e.g., the existence of a welfare state, advanced technological development in a highly industrialised society, a state regulated market economy (...) and relatively profound and widespread environmental consciousness.” Some of the Newly Industrialising Countries in South-East Asia are rapidly catching up with practices of industrial pollution control in Western countries (see O' Connor,


25

1994). And of course their rapid industrialisation makes this also necessary. However, in other developing countries there is hardly any movement towards more ecologically rational production. Often a command-and-control approach is applied in industrial pollution control. For example, in Beijing, China, in order to control pollution by electroplating enterprises, the Beijing Municipal Government has declared two regulations to limit industrial construction and expansion, and to require that permits be held by electroplating factories. Those that produce heavy pollution and use obsolete technologies and equipment are to be shut down or moved. The regulations appear to be effective from an environmental point of view as the number of electroplating plants has been reduced from 700 to about 200, and wastewater treatment facilities have been built in all remaining plants (Suzhen, 1995). In India, courts in Delhi and Gujarat are issuing orders for the closure of hundreds of polluting units (Chakraborty, 1995). Although environmental regulations to stop pollution are to be welcomed they should not jeopardise industrial development at all costs. It is doubtful whether such an approach will be successful in the small-scale sector. Not only are the widely dispersed small enterprises difficult to control, but their ability to abate pollution is limited so that strict enforcement of environmental regulations could result in the closure of small-scale industries. Marginally operating enterprises in particular would be forced to close down as a result of new environmental policies.

3.4 Small-scale Industries and Pollution Abatement Strategies Many countries have only policies and strategies targeting pollution caused by the large industries, but hardly any has a coherent strategy or legislation targeting the special needs of small-scale industry. The approaches recommended by Kent (1991) for reducing the environmental impact of small-scale industry can in fact be considered general requirements for pollution control by all industry, both small and large: • A policy approach, emphasising regulations and fiscal measures to mitigate pollution; and • A technical assistance approach, emphasising training, technical transfer, and technology development. Innovative approaches to control pollution are needed that address the needs of smallscale industries without comprising their ability to survive. In the next paragraphs, some approaches to industrial pollution control that are particularly of interest to the smallscale sector are discussed.

3.4.1 Cleaner production A promising concept for pollution control at small-scale enterprises is that of cleaner production. It is based on the ‘pollution prevention pays’ principle, that acquaints enterprises with the notion that it can be economically attractive to control pollution

26


(Huisingh and Bailey, 1982). Pollution can be considered an indicator of inefficiency. Inefficient production methods lead to wastage of resources, economic losses, poor working conditions and environmental pollution. On the other hand, production processes which are more energy efficient, use fewer resources, and re-use waste materials not only reduce environmental impacts but may also reduce costs. Although most cleaner production programmes have some economic benefit, they do not always provide the required pay-back on investment. However, pollution prevention can be a more attractive approach for industries than treatment of waste by end-of-pipe measures that add on costs. Enterprises already pay a great deal of money to discharge waste and sewage. The required waste treatment facilities will be a heavy burden on industry. The prevention of pollution is becoming more and more important for a viable enterprise. Generally, pollution prevention can be achieved relatively easily with only minor adjustments. The following types of cleaner production measures can be distinguished: • Input material changes, i.e., the use of less polluting raw materials; • Technology changes, i.e., adapting production processes to use equipment more efficiently and introducing clean technologies; • Improved operating practices through ‘good housekeeping’, i.e., maintenance of (leaking) taps, reduced spillage, etc., and better process control through monitoring and record keeping; and • Recycling of waste streams, either on-site or as a useful by-product. Substantial environmental progress can be achieved by such measures. Cleaner production also translates to improved working conditions for the labourers. Provision of protective gear and equipment, education on health and safety and generally improved housekeeping conditions all reduce occupational health hazards. Healthy and satisfied workers are expected to be better motivated to do a good job. It is thus believed that through the improvement of production processes industries can improve their economic and environmental condition. Cleaner production, or waste minimisation, has to some extent become a regular practice in business operations in Western countries. Step-by-step cleaner production audit methodologies have been developed, normally consisting of source identification, cause assessment and option generation (see de Hoo et al, 1991; UNEP/IEO, 1991; Modak et al, 1995; and van Berkel, 1996-a&b). Specific waste reduction audits exist for different industrial sectors, for example, audits for the electroplating industry are described by PRC Environmental Management (1989). Cleaner production is gaining importance in the rapidly industrialising countries of Asia (see Sakurai, 1995) and the African region has some ongoing activities in cleaner production, through institutionalised programmes such as the National Cleaner Production Centres (e.g., in Dar-es-Salaam, Harare, Tunis), donor funded demonstration projects and private sector initiated activities (Migiro, 1996). Experiences with cleaner production in both small and large industries, various industrial sectors, and both developed and developing countries, are described below. The Dutch project PRISMA (‘project industrial successes with waste prevention’) conducted a survey in ten medium-sized companies from five industrial sectors on the possibilities for prevention of waste and emissions. The project concluded that a


27

substantial part of pollution caused by industry (estimated at 30% up to 80% in special cases) can be reduced by the prevention of waste and emissions whilst still keeping within business economic conditions and using existing management techniques and current technology (Dieleman et al, 1991; de Hoo and Dieleman, 1992). The experience of PRISMA was followed by demonstration projects in cleaner production in India and China. Initial results suggest that the cleaner production concept offers industries equal opportunities for improved efficiency and at the same time significantly reduces waste and emissions (van Berkel et al, 1994). In China, a World Bank funded China Cleaner Production project of the National Environmental Protection Authority, aims to have 3000 companies working with cleaner production principles within a 5 year time frame. Initial results from demonstration projects in seven medium- and large-scale plants in the chemical, metal and food processing industry show that waste prevention techniques, and in particular good housekeeping, are feasible on a short term for environmental improvement in Chinese industry (van Berkel, 1996-b). From further pilot projects it appears that cleaner production measures are five times as effective in reducing pollution as end-of-pipe controls (Xie, 1996). Every year China publishes a list of best practical techniques for cleaner production and takes administrative and economic measures to urge enterprises to apply them and transform them into productivity. In India, the DESIRE project (‘demonstration in small industries for reducing waste’), sponsored by UNIDO and conducted by the National Productivity Council in 1993-94, demonstrated the potential of waste minimisation in small-scale industry. Technical assistance was provided to several small-scale pulp and paper producers, pesticide manufacturers, and textile processors (albeit, the textile printing and dyeing firms fell outside the small-scale category, having up to 250 workers). Numerous waste minimisation opportunities were identified, many of which can be implemented with little cost and result in significant economic savings as well as in remarkable environmental improvements (Chandak, 1994). Van Berkel (1996-a) summarises the potential of cleaner production in the above projects for providing significant improvement in manufacturing industries with respect to: • Environmental burden: the greatest improvement is in the reduction of waste and emissions (usually by between 20% and 40%), and - to a lesser extent - in the reduction in the volume of natural resources consumed (often in the range of a 5% to 40% reduction); and • Economic performance: significant economic savings can be achieved, with the overall pay back time being on average less than 1 year for all prevention measures adopted by the company. However, several barriers were encountered in the implementation of cleaner production programmes, including economic, technical, institutional and attitudinal barriers, both within and external to enterprises. One can think of insufficient involvement of employees, limited access to information and technology, policy aimed at financial support for end-of-pipe measures, hesitancy to take risks, and a lack of environmental policy and/or enforcement (Dieleman et al, 1991; Chandak, 1994). Although cleaner

28


production offers opportunities for win-win solutions, where environmental improvement goes hand-in-hand with economic benefits, its implementation remains difficult and will not happen overnight. This requires enabling measures, i.e., a supportive strategy. For example, there is a need for small businesses to be given incentives to undertake environmental change. Some of these incentives are provided by the environmental legislative framework. Other incentives relate to production costs, market forces, and occupational health and safety issues. But there is still a need to convince entrepreneurs that environmental improvements can reduce costs in the long run and this could be achieved by demonstrating best practices. There is a clear role here for governments in supporting innovative developments and providing a forum where information can be exchanged (O’Laoire & Welford, 1996). In the case of Hong Kong where there are over 35.000 small industries, many of them operating in multi-storey factory buildings, the enterprises simply lack the space to install pollution control equipment. The prevention of waste emissions is therefore a very attractive alternative for these enterprises. Cleaner production methods that reduce pollution control costs and at the same time reduce manufacturing costs come to the fore in this situation. However, because small factories are more vulnerable to risk, many are reluctant to adopt cleaner production methods. The dissemination of information about cleaner production then becomes a requirement (Lin, 1994). Comparing cleaner production options in small and large firms In comparing small-scale industries with larger ones on the potential and suitability to incorporate environmental measures, the former category initially seems to have a comparative advantage. Creating awareness of the win-win opportunities of the incorporation of environmental measures into production can be easier in smaller than in the larger ones. A change towards cleaner production requires the commitment of senior managers, effective leadership and teamwork. This last facet is expected to be easier to achieve in small firms (Welford and Gouldson, 1993: 180). In small-scale industry it can also be easier to involve the workforce who typically interact directly along nonhierarchical lines and know each other’s production activities better than in large-scale industries. There often exists a good overview of the complete production line within the enterprise by both the management and the employees. Participatory arrangements help to improve productivity and commitment which are central to the needs of cleaner production. However, small-scale industries are also confronted with a number of disadvantages in introducing environmental measures. They often lack the resources, and sometimes the know-how and awareness to introduce such measures. This seems especially relevant in those situations which lack a win-win opportunity, or in which the economic and environmental gains will follow only some time after investment. Furthermore, the infrastructure for proper handling and recycling of waste is usually inappropriate or even lacking, and some enterprises are short of space which limits the scope for more environmentally sound adaptations. Finally, economic problems can prevent the installation and operation of pollution control facilities. As small-scale producers seek to minimise production and labour costs, pollution problems are not their main concern. Often small-scale industries operate in highly competitive markets and are only marginally profitable, so environmental regulations that add even modestly to their costs


29

may threaten their viability. Hamza (1987) argues that rational pollution control of smalland medium-sized industries in Western Asia can be achieved only through realistic regulations and standards. Environmental standards should be less strict for small-scale industries and then gradually tightened. Another important internal factor determining the success of an environmental management system is the ability of the company to measure and assess its environmental performance. Continual monitoring at all stages of the production process, clear communication flows, environmental reviews, and environmental audits are required. Small enterprises are less likely to have the expertise to undertake these on their own or to have the finances to bring in a team of consultants (Welford and Gouldson, 1993). Considering the lack of technical expertise and finance in the small-scale sector, local authorities might step in to support the development of regional or industrial groupings, to encourage co-operation and networking, and to create links between small firms, between small and large firms, and between firms and institutions. However, the large number of these enterprises makes them difficult to reach. Any incentives for cleaner production measures from the external environment (such as the government, research and development institutions, training and education organisations) are usually absent for the majority of the small enterprises. Only a very small part of small-scale industry is in reach of NGOs, credit facilities, training and education institutions and government policies. The formation of associations that link policy institutions to the individual enterprises is essential. While associations are easily formed for large-scale industries, those that represent the interests of small-scale industries towards the policy community appear to be difficult to establish. Here a distinction must be made between those small enterprises which can be found in the formal sector, and those definitely to be conceived as the informal sector. The former have usually easier access to governmental organisations and credit facilities, but are confronted with relatively (as compared to both large-scale industries and those in the informal sector) high costs for licenses, taxes, etc., making the scope for them to introduce environmental measures limited. They miss the advantages of ‘economies of scale’ for introducing environmental measures, and common facilities for comparable enterprises are absent due to, among others, conflicting interests and a lack of industry associations. Although the size of an enterprise in itself has implications for the introduction of cleaner production measures, it is certainly not the only and decisive factor. Conditions like proper environmental awareness and environmental policy determine the level of industrial pollution control in small-scale industries just as much as they do for largescale industries.

3.4.2 Industrial parks An often mentioned and interesting approach to pollution control of small enterprises is their relocation to industrial areas near the edge of cities, of which many examples already exist (see Bartone and Benavides, 1993; and O’Connor, 1994). There are a number of environmental reasons for relocation. The most obvious is the simultaneous relocation of environmental problems, often away from residential areas. This way, the

30


stench, risk of explosions and pollution with toxic chemicals, to name a few, cause less nuisance, danger and exposure to city residents. The main rationale for relocation is that the concentration of polluting industries provides the opportunity for a common reaction to the challenge to environmental problems, by sharing costs and developing an efficient organisational structure for environmental management. As most small enterprises have insufficient funds, knowledge and space to treat their waste stream, a common treatment facility for several small enterprises would be more feasible. The concentration of industries with similar waste streams in the same geographical area would eliminate the logistical problems and associated costs of collecting waste from scattered sites for common treatment. Collective waste treatment has economies-of-scale advantages as well as the advantage that less monitoring and fewer trained personnel are required. For example, in Cairo, Egypt, small enterprises have been relocated to an industrial area outside the city which is equipped with a common disposal facility for chemical waste (Hamza, 1991). Hundreds of small metal-finishing enterprises in Tsubame, Japan, caused severe water pollution in the 1960s. Many of the enterprises were home-based and because of limited space it was difficult to install adequate treatment facilities. The municipal government provided an industrial area with common waste disposal plants and about 200 factories were relocated to the industrial park. The wastewater treatment plant is under the control of an industrial co-operative association. Further pollution reduction has been achieved by waste minimisation measures in the factories (Okazaki, 1987). A recent development is the clustering of specific kinds of industries in close physical proximity aimed at the exchange of waste. Based on the concept of zero emission or industrial ecosystem (Nemerow, 1995), the waste of one enterprise is perceived as a resource for another. Although this could provide promising opportunities to reduce waste, it can be difficult to organise and manage such a system. From the perspective of environmental management, a cluster of enterprises can be easier to reach with environmental information. A policy of positive incentives and participation of concerned industries often works better than just enforcing laws and regulations. Control and monitoring is far easier than with enterprises in widely dispersed locations. However, there is a danger that the industrial district be considered so important to the local economy that the authorities will not dare to intervene in its operation. Relocation and concentration can be economically favourable for the industries as well. Industrial parks, due to their geographical clustering, offer the possibility for sectoral specialisation of a large number of small enterprises. These clusters provide for economies-of-scale and collective efficiency, among others through networking and subcontracting of parts of production. Co-operating and networking entails creating links between small firms and between firms and institutions, such as local universities. Geographical links can be established in business parks. The physical proximity of enterprises can contribute to the exchange of ideas and the spread of technology. Innovative activities and healthy competition are to be expected in such an environment (van Dijk, 1993). Next to opportunities for economic improvement for firms in business parks, there is the opportunity to adopt an environmental management system across the industrial park and share costs. Moreover, industrial park companies are encouraged to innovate and be actively engaged in the transfer of environmental technology and


31

business skills to the other firms on site (Welford and Gouldson, 1993). In western India, enterprises in industrial clusters are organised into voluntary forums called ‘waste minimisation circles’ to collectively identify waste minimisation opportunities (Nyati, 1995). Risks The relocation of small enterprises, however, is not a panacea for pollution control. There are several environmental and economic arguments which dispute alleged advantages of relocation. For example, the relocation of environmental risks away from residential areas could be a temporary result as new residents, employees, customers and new entrepreneurs will settle, either legally or illegally, near the industrial area. It is also difficult to stop old and new businesses operating at the former location, as the demand market rarely shifts away from its original source. Common treatment of waste streams also requires some reconsideration. In wastewater treatment this makes sense only if it is applied to similar kinds of wastewater. Mixing biologically treatable wastewater with wastewater comprised of toxic chemicals would not be acceptable. Enterprises with organic wastewater, like the food industry, can best release their wastewater to the city sewers, but only in limited amounts and with a properly functioning urban sewage treatment system. The issue of combining waste streams is more relevant for enterprises with non-organic waste, such as the textile, electroplating and paint sectors. But even for them common treatment may not be the best solution. Common treatment carries the risk of becoming an activity at the ‘far end of the pipe’, so that incentives for reduction and/or reuse of waste streams could disappear. There are also economic risks involved with the relocation of enterprises. The costs of relocation often exceed the initial investment costs, and small enterprises will only move if adequate facilities, such as water and electricity are supplied, and financial support, through subsidies or loans, is offered. Concentration is easier to accomplish in the case of new investments, where firms starting up can be directed to industrial estates with common treatment facilities. The government of Sri Lanka adopted a policy in 1994 requiring that all new industries classified as medium and highly polluting be located in industrial estates. This policy is intended to ensure that polluting industries have appropriate environmental controls and are located in areas most suitable with respect to environmental attributes (Bhuvendralingam, 1996). Indonesia is likewise attempting to channel new industrial investments into estates equipped with common treatment facilities. At an estate in Surabaya, firms are charged for their wastewater stream and the revenues collected are used for operating a treatment plant. The estate specifies minimum wastewater treatment standards for each firm, and those exceeding the standards must invest in pre-treatment facilities (O’Connor, 1994). This is a good example of delegated authority and cost-effective waste treatment. Centralised waste treatment, however, does not necessarily require the central location of firms. In Bangkok, a central hazardous-waste treatment facility takes care of the waste from up to 200 small and medium-sized factories, primarily in the electroplating and electronics sectors. The costs of the plant, equipment and the land for the disposal site are borne by the government. It is, however, managed by a private contractor, who is responsible for the collection, transport, treatment and disposal of the waste. The contractor recovers the operating costs by levying a waste-treatment fee. Hence, the

32


electroplating workshops have a financial incentive to generate less waste by applying pollution control measures such as a simple rinsing technique (Phantumvanit and Sathirathai, 1986; and O’Connor, 1994). In Metro Cebu, the Philippines, a common treatment facility is planned with a capacity of treating the wastewater from 15 to 20 electroplating shops. The treatment facility is a batch operated detoxification system dealing separately with the different waste streams. Collection of contaminated process electrolytes and concentrates from static rinses and other effluents is done in colourcoded containers and transported by truck to the common treatment facility. It is estimated that the major cost factor is not the investment but the operating costs due to chemicals and labour (Canisguin, 1995). Although the relocation of small firms initially appears a good way to control pollution, several problems can occur when actually implementing such a planning policy. This is in part due to the narrow focus with emphasis on an environmental approach based on pollutant characteristics and common treatment with end-of-pipe systems, and an economic approach based on economies-of-scale. The main criticism of this strategy is that it fails to match with the daily reality of small industry in the cities of developing countries. Relocation and/or concentration would automatically result in a formalisation of the enterprises, while small firms tend to prefer to remain small and informal. It also ignores the reason why small enterprises are located where they are. Relationships with customers and other enterprises are important locational factors. Sometimes this in itself results in the physical concentration of small industries of the same sector, for reasons of a common market, resource delivery or co-operation.

3.4.3 Taking the industrial network into account Enterprises, particularly the smaller ones, increasingly operate in conjunction with other enterprises. Typically, most small enterprises will be involved in some business-tobusiness activity. Through competition ànd co-operation an improvement of the quality of goods and services is pursued. Inter-firm relationships and relationships between firms and intermediate organisations are part of a modern business strategy, including the issue for more environmentally sound production. In the current mode of industrial selfregulation for pollution control, at least in industrial countries, branch associations and supply chains play an increasing important role. Role of branch associations In the industrialised countries, branch associations incidentally exert pressure on their members to improve their environmental performance. Industry has come to realise that it is judged by the worst polluting enterprises in its particular sector. Codes of conduct and statements of principle, such as on process safety and pollution prevention, are used to provide a framework for the transfer of technology and know-how to pull up standards. A good example of this is the chemical industry’s ‘Responsible Care’ initiative which originated in Canada in the mid 1980s and requires that companies make a formal commitment to continuous improvement in performance as a condition of membership. Binding codes of conducts and annual self-evaluation reports both pressure and assist chemical companies performing below acceptable environmental standards (Robins and


33

Trisoglio, 1995). Such programmes mark a new stage in voluntary agreements by industry, and the new role of branch associations in environmental management. Governmental agencies increasingly acknowledge branch associations as a favourable ‘entering port’ for environmental policy interventions and try to supply them with tasks related to the provision of environmental services (Mol, 1995). To some extent, branch associations play a role in pollution control in developing countries as well. In Thailand, the Federation of Thai Industries has been empowered by the national government to ensure that its member industries comply with environmental standards and regulations (O’Connor, 1994). However, in the case of micro and small enterprises the entrepreneurs tend to avoid associations, as the perceived benefits are outweighed by the limited time the entrepreneur has available to participate in activities and meetings of the associations (McCormick and Pedersen, 1996). Pressure along supply chains In the industrialised countries, modern small firms need to be more flexible, and at the same time more specialised, producing high-quality goods. Quality standards are being forced along supply chains. In countries like the Netherlands and Japan, large enterprises have increasingly applied stringent standards to their suppliers. This has affected the organisation of quality care systems in the medium- and small-scale enterprises. Increased demands on stringent environmental standards could, and to some extent already do, result in the incorporation of environmental concern in the quality care systems of medium- and small-scale enterprises. For example, in the Netherlands, some environmental transformations in the paint and plastic sectors originated from the production-consumption chain (Mol, 1995). Corporate strategies are currently also driven by the environmental concerns of stakeholders and the belief that being environmentally sound pays through cost reduction and an increased market entry. These new demands actually make the integration of environmental strategies easier. Many small firms find increased pressure being applied to them as environmental management strategies are pushed along the supply chain. Such firms have to adapt if they are not to lose markets. Small and medium-sized enterprises will therefore find themselves part of increasingly complex supply chains which will be driven by quality standards, environmental demands and a need to be flexible. Co-operation and networking of small enterprises at the local level might serve to distribute costs of environmental management whilst sharing solutions and perhaps even environmental technology. Trade associations can, and do, provide information for their members on environmental issues and encourage co-operation between companies (Welford and Gouldson, 1993). In Surat, India, over 250 textile dyeing and printing enterprises together with their local suppliers co-operate in a waste minimisation group, sharing experiences and fostering innovations in cleaner production. This co-operation has resulted in the development of energy and water efficient process equipment among other innovations (van Berkel, 1996-b). An Austrian study indicates that the implementation of preventive environmental measures in small and medium sized enterprises is dictated to a large extent by market mechanisms and market-driven factors (suppliers, customers, competitors, disposal companies). Laws and regulations were found to have varying effects, mainly resulting in add-on measures and not in process-integrated or preventive measures. The capital market and insurance companies did in this case not appear to exert any influence.

34


Personal commitment and motivation of operators and managers, on the other hand, were vital to a successful innovative approach to the environment (Hahn et al, 1996). One should not, however, be over-optimistic about the achievements of selfregulation. A survey of 102 small and medium-sized manufacturing businesses in West Yorkshire, UK, indeed revealed that environmental performance is pushed along the supply chain. A small number of firms (8%) had begun specifying some environmental requirements from their own suppliers. However, most of the pressure seemed to be coming from the regulatory agencies rather than directly from customers. Moreover, most are ‘burying their heads in the sand’, not recognising the environmental challenge which faces industry (Welford, 1994). In any case, it is recommended that the industrial networks and institutional framework of small enterprises be taken into account in the search for appropriate environmental measures. Cleaner production measures at enterprise level are well worth exploring, but the main constraints in implementing them, as well as their main facilitating factors, are derived firstly from the interactions with other firms and customers, followed by intermediate organisations and governmental agencies. Every environmental strategy should take these into account in order to predict wider consequences and to benefit from existing associations.

3.5 Hypotheses for Further Study The theoretical framework and literature review presented in this chapter highlights some interesting questions for research and hypotheses for the study. What can be concluded is that pollution control efforts of the small-scale industries should not be undertaken in isolation. A contextual approach is required that takes into account the operating and economic conditions of small enterprises, their location and relationship with other organisations, and the institutional framework of the small-scale industries. Three hypotheses can be put forward that capture the main issues in pollution control of small-scale industries: • Small-scale industries do contribute to environmental pollution. Inefficient production and an inability to adopt treatment methods causes a relatively high pollution load per unit of output. • Several options for cleaner production exist, which can be implemented with relatively little effort and at little costs. However, small-scale industries face some constraints in implementing cleaner production for both internal and external reasons. • Using the institutional framework in which the small-scale industries operate provides a promising approach for giving incentives and support for small-scale industries to change production to be more environmentally sound. In chapters 6, these hypotheses will be evaluated in the context of the research findings on three small-scale metal industries in Nairobi. In particular, the constraints on effective implementation of environmental measures in small-scale industry and the required incentives to overcome these will be discussed, ultimately to develop supportive strategies and policy recommendations on pollution control of small-scale industry. But


35

first, in chapter 4, the Kenyan context and institutional framework in which the smallscale industries operate will be presented.

4 Kenyan Industrial and Environmental Policy Affecting Small-scale Industries 4.1 Introduction Before going into in-depth case-studies (chapter 5), in this chapter the institutional context of small-scale industries is presented, encompassing Kenya' s industrial structure and industrial development policy. Because the concern in this study lies in pollution abatement strategies, the environmental impacts of industry in Kenyan cities, as well as environmental policies need to be known. A nation’s industrial policy is in general closely connected with its current and future environmental pollution levels, for example from the role of industrial planning, in either stimulating or restricting particularly polluting sectors of industry. Both fields of policy are discussed in this chapter. It concludes with a section discussing the role of specific actors concerned with small-scale industry development and/or environmental issues in Nairobi. This can be considered a general assessment of relevant networks for small-scale industries in Nairobi to be followed by an assessment of the specific networks relevant for the enterprises under study in chapter 5.

4.2 Kenya' s Industrial structure Compared to other East African countries, Kenya is recognised to currently be the most industrialised country in the region. Nairobi is the centre of business and industry. Large areas, especially in the Eastern part of the town, have been assigned to industries such as food processing, leather tanning and metal working enterprises. Since the early seventies, Kenya has been well known for its huge informal industrial sector, encompassing the artisans who mainly work with hand tools and produce for internal markets. Until today, most formal industries have centred in Nairobi and in Mombassa, the second city and Kenya' s main seaport. Although industrial siting policies have been used to disperse industrial development over the country, resulting in a more spatially balanced economic growth, the main industries and the greatest industrial growth are still to be found in these cities (Ombura, 1996). The contribution of industry to the country' s economic development has grown to currently 14% of GDP. There are now more than 700 medium and large scale enterprises operating in Kenya. Some 200 of these are foreign multinationals (Percival, 1996). The manufacturing industry accounts for 37% of the labour force in the private employment

38


sector (Odipo, 1995). The share of industry and manufacturing in economic activity is quite small at 20% and 13% of GNP respectively. There has been considerable growth in formal manufacturing compared with other sectors of industry. Manufacturing ranks third overall after the sectors of ' Community, Social and Personal Services'and ' Agriculture and Forestry'(Ombura, 1996). These figures, however, concern formal industrial enterprises only. For a comprehensive overview of manufacturing activity in Kenya the figures are meaningless if the large number of small-scale and micro enterprises in the so-called informal sector is ignored. Instead of only accounting for the formal enterprises, which are mainly medium or large scale, it is necessary to take into account all industrial enterprises and distinguish industrial categories on the basis of size. A classification of micro-enterprises (0-9 employees), small enterprises (10-49 employees), medium enterprises (50-99 employees) and large enterprises (100 or more employees), has been proposed for Kenya by Livingstone (1991), and other authors. In Kenya, micro-enterprises are also referred to as the Jua Kali sector, literally “hot sun”, referring to the fact that many small-scale manufacturing and repair activities are conducted in the open air. The size breakdown of the small-scale sector in Kenya, based on a national baseline survey in 1993, is shown in table 4.1. About 95% of enterprises have 5 or less employees and in manufacturing, 40% are single-worker enterprises, mostly operating in the informal sector (Parker and Torres, 1994). The average number of workers in Kenyan enterprises is 2.3. However, in commercial and industrial sites the average size of the enterprises is somewhat larger at 5.8 workers, and 10% of the total work force is in the 11-50 range (Parker & Torres, 1994: 46). Table 4.1: Enterprise size breakdown in Kenya

1 % of enterprises

47%

Number of enterprises 2 3-5 6-10 28%

20%

49%

11-50

avg = 2.3

1%

Source: Parker and Torres, 1994

4.2.1 Small-scale enterprises As shown in Table 4.1, small enterprises ranging from 11-50 employees are rare in Kenya. There are only a few medium- and large-scale industries, mainly controlled by Asian families. Micro-enterprises however are numerous and comprise about 99% of all enterprises, estimated at nearly one million in number. The percentage of total employment in modern small enterprises in Kenya is 12%. This is only a small percentage compared to other developing countries like Nigeria where employment in small enterprises is 60% and Sierra Leone where it is 50% (Liedholm and Mead, 1986, in King, 1996). The Kenyan government refers to this phenomenon as the ' Missing Middle' in Kenya' s manufacturing and industrial sector. A 1987 World Bank report judges the Missing Middle and paucity of modern, small-scale manufacturing establishments above the micro-enterprise category to be a major weakness of Kenyan industrial development

Industrial and Environmental Policy in Kenya

39

(Livingstone, 1991). Contrary to expectations that small enterprises are a ' seed-bed' of large-scale entrepreneurs, micro enterprises do not grow into modern small enterprises. In an international context, the theory about the ' seed-bed'function for entrepreneurship has been challenged by empirical studies which evidence the willingness of small entrepreneurs to maintain only a small business. It has even been argued that it is quiet irrational for a small, informal enterprise to remain small. Growing larger than a certain size brings the enterprise under formal regulations. A medium-sized enterprise does not necessarily overcome the disadvantage of being relatively small for there are still no economies of scale. This can be added to the disadvantage of producing under formal conditions. Thus, for a variety of reasons, the growth that is assumed ' natural'for small firms simply does not occur (McCormick, 1992, in House et al, 1993). Determinants of the growth of firms are to a large extend comparable in developing and developed countries. These include initial conditions such as size of the firm (small firms grow faster than large firms), firm age, quality of management and main obstacles to growth, such as regulations, market conditions and finance). In addition, small firms in developing countries may not grow because the cost of growth outweighs its benefits, given the transaction costs involved in becoming a formal firm. The six main obstacles mentioned by Kenyan entrepreneurs to firm expansion are a lack of credit; lack of demand; insufficient infrastructure; lack of support services; competition form imports and high utility prices (Biggs and Srivastava, 1996). Livingstone (1991) has rightly argued that in discussing growth of the microenterprise sector a distinction should be made between aggregate employment growth, which may occur through an increase in the number of enterprises, and growth and development of individual enterprises within the sector, reflected in increasing numbers of employees and capital, or development, in technology and the product. In Kenya, there has been a remarkably high rate of growth in aggregate employment, but comparatively little growth in individual enterprises. So the sector generally expands not as a result of establishments hiring more people, but more often as a result of an increase in the number of self-employed people. However, of the individual enterprises which do grow - which is only a very small number - these mostly started growing from a single worker enterprise. Table 4.2 presents a sample of enterprises which indeed have expanded over the years and have grown from smaller sized enterprises. In this case it appears that single-worker enterprises are the seed-bed for 3-5 worker and even some 11-50 worker enterprises, providing half or more of all enterprises in those categories with their start.

40


Table 4.2: Number of expanding enterprises by initial and current size Error! Bookmark not defined.Current enterprise size (in workers)

Initial enterprise size (in workers)

1

2

3-5

6-10

11-50

2 workers

100,845

-

-

-

-

3-5 workers

70,810

35,433

6,669

-

-

6-10 workers

8,740

5,323

8,475

1,309

-

11-50 workers

5,836

69

3,016

1,398

438

186,258

40,825

18,160

2,707

438

Total enterprises

Source: (Parker and Torres, 1994: 29) Another survey done in Kenya (RPED Surveys, 1993, in Biggs and Srivastava, 1996), using a much smaller sample of manufacturing firms, revealed that enterprises with 1-9 workers have the fasted rate of growth, while large firms grow more slowly. In Kenya, employment growth within the size class of 1-9 workers was 83% between 1986 and 1992, while the rate for large firms (>100 workers) was only 13%. However, if we look at the share of each size class in total jobs created, large firms still emerge as the dominant source of employment in manufacturing. The share of overall manufacturing in employment growth between 1986 and 1992 was 55% for the large firms and only 5 % for the small firms (Briggs and Srivastava, 1996). These observations help explain the ‘missing middle’ in Kenyan industrial structure. Micro-enterprises generally do not easily grow into large firms and sometimes do not even intend to do so. This is not to say that the micro enterprise sector has failed to grow over the years, but that growth has mainly been in the number of new establishments instead of the evolution of individual small firms into larger firms.

4.2.2 Labour absorption in small-scale enterprises In Kenya as elsewhere, the formal sector is not able to provide enough employment for the growing urban labour force. Moreover, the jobs created in this sector cater mainly to skilled labour, ignoring the untrained workers from the urban low-income groups. As Table 4.3 shows, the small-scale sector is expected to play a significant role in job creation and consequently in alleviating urban poverty. There are more than 2 million people (16% of the total labour force) employed in more than 900,000 micro and small enterprises in Kenya. More than 60% of micro and small enterprises are in commerce and trade, about 13% in services and 27% in manufacturing (Parker and Torres, 1994).


41

Table 4.3: Some basic figures on Kenyan employment and the small-scale sector Error! Bookmark not defined.Population in Kenya Population Nairobi

23 million (1988); 35 million in 20001 2.5 million

Population growth

3.5 % (1980-1985), urban: 7.3 %2 2.7 % (1988-1993), urban: 5.9 %2

Labour force

6.9 million (1986) up to 14 million in 20001

Unemployment

13% overall and 25% in urban centres2

Amount of SSEs

700,000 - 900,000 (1993) 3-4 of which 22% is located in urban centres

Contribution of SSEs to GDP

12-14%3

Employment in SSEs

1.2 million3 - 2 million4, 6.9 million in 20005

Employment growth in SSEs

18.5 % (1993)5

Number of SSEs in manufacturing

26.9 % of total SSEs4; 15.5 % of urban SSEs3

Sources: 1 Mwaura, 1986; 2 World Bank, 1995; 3 Daniels et al, 1995; 4 Parker and Torres, 1994; 5 Kenya Government, 1994.

Many micro-enterprises operate from home for example, in Nairobi 56% are home-based (House et al, 1993). Overall, there are an estimated 40,000 home-based and microenterprises in Nairobi, most of them located in informal settlements. The educational level of the employees of the small-scale sector is low, which makes it difficult for them to get jobs in the formal sector. A study showed that of the artisans, 4% were illiterate, 64% had a primary school education and 32% a secondary school education (Ondiege and Aleke-Donde, 1991). In Jua Kali businesses, however, they can earn comparative incomes to employees in the formal sector. Many self-employed workers and their employees earn well above formal sector wages (House et al, 1993). In Nairobi, most depend entirely on the incomes received in the informal sector, and have no rural land to go back to. A 1977 survey of Nairobi’s informal sector characterised the employers as urban residents of long standing, and the employees as younger and more recent immigrants. Of the 543 employees studied, just over half were employed on a regular basis, 12% were

42


intermittent or casual workers and 34% were apprentices, slightly more than half of whom received a nominal cash wage (House, 1984). Indeed, apprenticeship is very common in the industrial sector of Kenya. Finally, women constitute about 46% of entrepreneurs and 40% of employment in the micro and small enterprise sector, being dominant in commerce and trade, particularly in agricultural-related activities.

4.2.3 Contribution of SSEs to the national economy A generally accepted view is that for most developing countries, small enterprises provide an important source of income and employment, without requiring heavy capital investment or government subsidies. The cost of creating a job in micro and small enterprises is considered to be ten times lower than in the large scale sector. However, in Kenya during the 1980s, only 25% of the total increase in the labour force was absorbed by small enterprises, compared to more than 44% in other sub-Saharan African countries. About 76% of the increase in employment in small enterprises in Kenya was due to new start-ups (Mead, 1994). It is estimated that the informal sector employs 40-60% of the urban labour force and contributes 20-30% of the total urban income (Malombe, 1992). However, House et al (1993) refer to just over one-third of total urban employment in Kenya, including both the self-employed and their employees, as being engaged in informal occupations.

4.3 Industrial Policy in Kenya Shortly after independence, the Kenyan Government established several financial agencies to promote industrial development. Financial participation by the government has been an important feature in the expansion of Kenya' s manufacturing sector. Besides financial support, the Kenyan Government further aided development by the provision of infrastructure, transport, communications and other economic services (Ombura, 1996: 50). The Kenyan government acknowledged the importance of foreign capital and entrepreneurship in the industrial development of the country. To attract foreign industries, land and funds were provided, as well as tax exemptions, freedom of choice of location and technology, and grant-assisted monopolies. The Foreign Investment Protection Act (1969), guarantees foreign investors the repatriation of profits and insures against nationalisation (Ombura, 1996). Despite the attractions for foreign investment, ‘Kenyanisation’ has been one of the major policy objectives in industrial development, next to dispersion of industries over the country. The import substitution adhered to in the 1970s was aimed at providing goods for the domestic market. The government used high tariffs and import licensing to encourage a wave of investment in typical import-substitution industries, such as beverages, textiles, furniture and paper. These industries depended heavily on imported machinery and inputs; and the government lacked the policies and many of the institutions needed to break that dependence (Coughlin, 1991). In fact, the institutional framework enabling the import-substitution strategy is still quiet strong. After achieving some success in import


43

substitution, the government failed to encourage companies to use more locally-produced inputs. Its earlier import substitution policy had nurtured a strong coalition of import dependent industries, merchants, distributors, and politicians who effectively opposed policies to stimulate new industries making intermediate inputs locally (Coughlin, 1991). By 1975 the World Bank had advised Kenya to avoid going into the second stage of import-substitution (protection of intermediate goods), and instead to emphasise productivity and promote export. However, the danger of such a policy is that "by downplaying the significance of further import substitution, the government could fail to adjust policies so as to steer investment into new activities needed by the nation to build an increasingly interdependent manufacturing sector and enhanced technological capabilities" (Coughlin, 1991: 10). The first phase of import-substitution has been quiet successful, but the next step, to steer industrial development into producing intermediate goods, has never been completed. The result is that, at least in the formal sector, besides basic maintenance and repair units, there is little capacity for the local manufacturing of spare parts. There is no efficient machine tool industry, and there is very little engineering innovation. There is currently no scheme to employ science and technology in the economic development of the country. An example of this is the inadequate patent law. The Kenya patent law provides only for registration of United Kingdom patents, and any Kenyan invention must first be patented in the UK. Since local innovations are mainly adaptations of technologies, many of these would not be patentable in the UK, which leaves them unprotected in Kenya. Nevertheless, in the early eighties the Kenyan Government proclaimed a shift in policy in the National Development Plans, concerning structural adjustment of the country' s economy. This was not driven as much by internal forces as it was by external forces, such as the World Bank which pushed strongly to reduce protectionism in Kenyan industry. Import restrictions for raw materials and capital equipment were abolished and exports encouraged (Ombura, 1996). The prospects for export manufacturing, however, are limited by protectionist measures in the industrialised countries, by a weak export basis from where to start and by a high cost structure in manufacturing (Mikkelsen, 1987: 11). The industrial sector has become too inefficient to compete in export markets. The current structural adjustment programme makes reforms aimed at generating export-led economic growth and creating an enabling environment for large-scale production.

4.3.1 Industrial policy towards the year 2020 As outlined in the Sessional Paper No. 2 of 1996 on ‘Industrial Transformation to the Year 2020’, the Government of Kenya is striving to become an industrialised country by the year 2020 (Kenya Government, 1996). The Sessional Paper sets out “national policies and strategies that will lay the foundation for the structural transformation required to enable Kenya join the league of Newly Industrialised Countries”. Policies are stipulated that will stimulate economic growth and employment through the expansion of the industrial sector. The government’s role will be to provide an enabling environment, by investing in human development and basic welfare, providing and maintaining essential infrastructure, and when necessary, guarding against human exploitation and environmental degradation. The co-ordination of government activities and a partnership

44


approach between the government and private sector is considered essential. For this reason a National Industrial Development Council will be established composed of public and private sector representatives. In the industrialisation process, the Kenyan Government emphasises the role of the small-scale and Jua Kali sectors. These must be fostered for continued to growth, as the government expects that more jobs will be created in this sector than in any other nonagricultural sector. The second Sessional Paper also stresses that industrial development must adhere to standards of environmental protection and resource conservation. Industry must strive for more efficient use of energy and resources, the minimisation of waste, and proper waste disposal management. Government organisations involved in implementing environmental policy and enforcement will be strengthened. Polluters will increasingly be confronted with the full cost of their activities under a ‘polluter pays’ approach. The government is also considering the introduction off effluent and emission charges and tax concession for environmentally sound technologies. The promotion of the small-scale and Jua Kali sectors and the promotion of environmental protection deserve attention here. In section 4.4, the latter issue will be discussed. Here, the support to the small-scale and informal sectors in Kenyan industrial policy is presented..

4.3.2 Support for small-scale industries from 1972 to date The National Development Plan 1994-1996 states that: “Much of the employment generated by the private sector will come from small and medium sized firms employing between 5 to 20 employees which is expected to grow at about 11 per cent per year during the Plan Period ”(Kenya Government, 1994: 49). This and other even more ambitious statements on the small-scale enterprises sector by the Kenyan Government are relatively new. Policy that is aimed at supporting Jua Kali and small enterprises has only been issued after a long period of earlier governmental disregard of the role of small-scale enterprises in Kenya' s economy. In the early seventies, the International Labour Organisation published a report which stressed the scale and magnitude of the ' informal sector'in Kenya (ILO, 1972). In fact it was the first time the term ' informal sector'was used and the report drew international attention. Contrary to common perception unemployed Africans, the ILO Mission asserted that most of those outside the modern sector were working. They were working with resources they had saved by themselves, with labour-intensive and adapted technologies and with skills acquired outside the formal system. It also seemed relatively easy to enter this mode of production, even though it was unregulated and highly competitive (ILO, 1972, in King, 1996). Although the importance of the informal sector to the urban economy of Kenya had been clearly stated, it took almost 14 years before the appearance of a policy supporting the sector. One of the reasons is that the ILO report stated that the development of the small-scale sector had taken place despite total neglect of the sector by the government. Consequently, there seemed to be no reason for government intervention.


45

In those 14 years, some references were made the informal sector in Development Plans, but no policies were stated. Only in 1985 was a major restructuring of education and training introduced, with a much greater emphasis on vocational, scientific and technological development. At the same time, new macro-economic policies were discussed by the government preparing the first Sessional Paper of 1986, called Economic Management for Renewed Growth (Kenya Government, 1986). This paper addressed the crucial role of the informal sector in generating economic growth. In November 1985, president Moi made a stop at the Kamukunji Jua Kali area and promised to provide sheds for the artisans working under the hot sun. It was the first public recognition of the Jua Kali sector since the ILO mission in 1972 (King, 1996: 13). Not only through the creation of employment, but also through the provision of many cheap services and goods, and the creation of industrial skills at little cost, is there value in the government aiding the informal sector. In 1989, an impressive small enterprise development project was started which involved all relevant ministries, the aid agencies and representatives of industry, commerce and NGOs. A whole set of strategies were put down in three policy documents under the name of Small Enterprise Development (Kenya 1989a,b,c) proposed that would benefit small and micro enterprises, and covered three domains: • Creating an enabling environment for small enterprise development. The role of the government should be changed from interventionist to a more facilitative role encouraging efforts by the private sector itself. The many macro-economic, legal, technological and fiscal obstacles for these efforts should be withdrawn. • Setting up Non-Financial Promotion Programmes to promote entrepreneurial skills, such as training courses in entrepreneurship and incorporating informal sector business issues into existing education programmes. • Establishing new or adjusted credit programmes which could provide small entrepreneurs with easier access to credit facilities. These strategies were included in a Sessional paper, called Small Enterprise and Jua Kali Development in Kenya (Kenya Government, 1992). A wide range of policies and strategies aimed at fostering a more enabling environment for small enterprise development was outlined. Some relevant policies towards small enterprises are: • Providing incentives for investment, e.g., some exemption from import duties on capital machinery; • Infrastructure development, e.g., by providing land and sheds; • Providing information on technology options; • Creating supportive services for market expansion, e.g., by dissemination of market information, export promotion and subcontracting from large to small enterprises; • Encouraging the formation of sectoral small enterprise associations to facilitate the effective use of assistance available; • Easing of some constraining regulations, e.g., relaxing of licensing arrangements; • Providing credit facilities specifically geared towards female entrepreneurs; and • Establishing a special training fund.

46


Since 1986, the Ministry of Research, Technical Training and Technology (MRTT&T), through the Directorate of Applied Technology has been the main agency to put in place support programmes for the enhanced development of the sector. The Ministry provides training facilities, encourages the identification and mobilisation of Jua Kali entrepreneurs, and facilitates the operation of small-scale enterprises by providing plots and sheds, funds for infrastructure and by reviewing Laws and by-Laws which impede the development of Jua Kali enterprises. In annex 1, MRTT&T is presented in more detail. Apart from such a facilitating agency, some financial institutions have been specifically designed for lending to the small and medium-sized enterprises, the most important being Kenya Industrial Estates (KIE) and Small Enterprise Finance Company (SEFCO). To encourage loans from the financial sector, commercial banks are allowed to charge competitive interest rates on small enterprise loans. Some donor funds use credit guarantee schemes to increase the flow of credit to specific target groups including Jua Kali artisans, youths and women. There are also about 40 non-governmental organisations active in credit provision to small-scale enterprises and Jua Kali , such as K-REP, the Kenya Rural Enterprise Programme. In total, there are more than 60 credit institutions operating in Kenya. Unfortunately, the increase in numbers of institutions supporting this sector has not been matched by significant changes in policy although many policy pronouncements have been made (Aleke-Dondo, 1995).

4.3.3 Problems and prospects in small-scale industry support Government policy primarily addresses resource constraints by providing credit, training and infrastructure. Market problems and legal obstacles still remain. In other words, although policy no longer ignores the importance of demand-side improvements, supplyside measures still prevail. In a survey by Parker and Torres (1994) it emerged that the small market is perceived by the entrepreneurs as their major business problem, even above input problems and a shortage of capital. Although the government policy towards production and employment generation by small enterprises is to be welcomed, in practice its implementation is lagging. Regrettably, relatively few of the ambitious policy measures have been effectively implemented to date and most government organisations engaged in small enterprise support are relatively ineffective. Many of the legal requirements, such as those regulating licensing, taxation, and employment, are often not enforced for small enterprises. Although it may appear that some benefit from this, the drawback is the uncertainty and threat of enforcement and closure, because small enterprises are not actually exempt from the legal requirements. A particular problem for the informal sector is the constant threat of police harassment and eviction for those having no trade license legal right to their premises. Frequent reports of this problem suggest a major discrepancy between government policy and local authority activities (House et al, 1993). The discrepancy has only widened since 1990. In November of that year several Jua Kali areas were demolished in Nairobi and a number of other towns, leaving 50.000 people homeless and destitute (Ikiara, 1991, in King, 1996). Since then, small entrepreneurs, although holding a certificate issued by the ' Jua


47

Kali Ministry'the MRTT&T, feel vulnerable to the government, since most of their premises are built on public grounds. According to King (1996), some action has been taken since the issuing of the 1992 Sessional Paper, for example, through the introduction of entrepreneurial education and Small Business Centres in some technical training institutions. But the dynamics of the informal sector have mostly been determined by macro-economic reforms in the of Kenyan economy. These include import liberalisation, relaxation of price controls and the deregulation of interest rates (King, 1996). The conclusion can be drawn that Jua Kali development in Kenya is less a programme than a series of mainly private sector and NGO projects. Jua Kali policy has limited influence because of the absence of complementary industrial policies and relevant trade policies (King, 1996). The conceptual separation of Kenya' s industrial policy from its micro and small-scale policy development is one of the main causes of this phenomenon. Several observers of Kenyan industrial development policy address this lack of an integrated policy, which takes into account the role of small-scale manufacturers in the production of much needed intermediate goods. They state that what is lacking is consensus at the highest level in Kenya about industrialisation policy that will move the country ahead to manufacturing intermediate goods, while at the same time making the micro-enterprise world an integral part of industrialisation project (Coughlin and Ikiara, 1991).

4.4 Urban environmental pollution problems

Apart from the series of environmental problems in the rural areas of Kenya, including land degradation, water pollution, deforestation, and loss of bio-diversity, a whole range of urban environmental problems have arisen in the fast growing cities. Basic services, such as adequate water supply, sanitation, and housing, are poor for the majority of inhabitants of Kenyan cities. Between 40% and 70% of the 2.5 million inhabitants of Nairobi live in informal settlements and slums, often in very poor and unhygienic conditions. The provision of services and infrastructure is also poor outside the slum areas of Nairobi. Garbage collection by the city council is extremely poor, with many areas never being served or only once in several months. As a result, garbage is dumped, and accumulates, everywhere. In 1988, the city of Nairobi generated around 1000 tonnes of waste per day, which is 0.4-0.5 kilograms per person per day. Other estimations are higher, up to 2400 tonnes per day of domestic waste generated and 550 per day of industrial waste, in 1988 (Situma, 1992). Less than 50% ever gets collected and disposed of. In 1988, this figure was only 21.5%. (NCC, 1990 in Otieno, 1992). Inadequate water supply is another of the city' s problems. Some water sources are polluted with domestic and industrial waste. From 1987 figures about 58% of Nairobi’s population is estimated to be connected to the sewer, the rest being served by septic tanks, pit latrines or non sanitation facility. Only part of the waste water is treated (Situma, 1992) and the sewer system discharges into Nairobi River. The river flow is very small and the water mainly consists of sewage during the dry season. Downstream, the biological oxygen demand (an indicator of pollution of organic waste) exceeds 100 micrograms per litre. As a result, dissolved oxygen varies between 0.5 micrograms per litre and zero (Marete, 1987). The WHO stipulates that surface water should have a mean standard value for BOD of 5 micrograms per litre in respect to various beneficial uses.

48


The river, crossing the city from the upper western part to the lower eastern part could well be described as a ' dead river' . There is no fish life due to the amount of pollution and the low oxygen levels. The pollution of the river is a major health hazard to the low income groups. These groups do not have access to clean water and consequently use the river water for their domestic needs (Marete, 1987). Urban service provision in Nairobi continues to deteriorate. Nairobi City Council, (NCC) operates with revenue that does not cover the costs of an adequate system. In accordance with the Water Bill, the NCC charges Ksh10 per household per month for sewerage and refuse collection. It is, however, to be questioned whether an increase in charges would result in an improvement in service provision, as the lack of an overall national environmental policy contributes greatly to the problems and inability of the NCC.

4.4.1 Industrial pollution Nearly every industrial enterprise built along Nairobi River adds to its pollution. This occurs indirectly via discharges to the sewer system, and directly by enterprises discharging all kinds of solid and liquid waste into the river. Independent of the increasing number of vehicles in Nairobi, industries also contribute to air pollution. The Nairobi Industrial Area had a concentration of 252 micrograms per cubic meter of suspended particular matter in 1982. This is far above the mean annual and daily mean WHO guidelines for ambient air quality standards, i.e., 4090 micrograms per cubic meter and 100-230 micrograms per cubic meter, respectively. As industry is dispersed throughout residential areas, particularly in the south-eastern part of the city, air pollution is a difficult problem in terms of control and prevention. It seems that the Nairobi City Council has failed in achieving good town planning and in properly coping with the numerous environmental problems of the fast growing capital (Situma, 1992).

4.4.2 Small-scale industries and environmental pollution Several practices in the Jua Kali and industrial areas deserve attention. In the Gikomba area, heaps of saw dust from the many small-scale carpenters along the river almost block the flow of water in the river and consequently increases the biological oxygen demand to extreme levels. Leather tanneries, food processing industries, textile dyeing industries and printshops, electroplating industries and car-repair workshops are major sources of local pollution and stench in residential and commercial areas. Toxic waste streams containing cyanide (from electroplating), chromium (from leather tanneries) and oil (from car repair workers) accumulate in the soils and cause long term risks for current and future residents. In many cases, oil and industrial waste water are disposed of without treatment. There is no infrastructure for common treatment of industrial waste, nor is there an economic incentive to do so. Many factories discharge waste water to drains and watercourses, and dump residues at the municipal dump sites and randomly throughout


49

the area. The volume and composition of this waste is unknown by the government, and there are no legal requirements for their measurement (Odipo, 1995). Occupational hazards for Jua Kali artisans range from noise to the inhalation of toxic chemicals and physical accidents. The struggle for survival forces many to ignore the dangers in their trades. Chemical hazards are common among the motor vehicle repairers, since they deal with a number of acids. The spray painters are exposed to solvents and paints which may irritate the skin and lungs. There are even paint shops where the different colours are being mixed with bare hands. The welders are exposed to toxic metals and toxic gases which may predispose them to diseases such as metal fume fever. In Jua Kali enterprises, much of the welding is done without any protective eyewear. Physical hazards for workers include noise, heat and cold. Exposure to too much noise can have auditory and physiological effects. Repeated exposure to high noise levels such as those affecting Jua Kali can also be hazardous to hearing. Exposure to heat is common, since these workers operate in outdoor areas, except for a few organised workers who have made temporary sheds. Heat cramps are common, along with headache and dizziness. The use of improvised tools and the incorrect postures adopted during long working hours are common in Jua Kali. People have to be physically fit to do some of the jobs but their continuing fitness is not assured. Ninety per cent of the equipment used in Jua Kali is either improvised or crude. The majority of the workers do not use any protective equipment (Atambo, 1989). Few artisans are aware of work place hazards, and those who are aware seldom practise any safety measures as they view this to be a luxury. Since Jua Kali workers operate at roadsides and on pavements in front of buildings, sanitary facilities do not exist. Quite often workers improvise for sanitary convenience which further contributes to environmental pollution. Washing and drinking facilities can be a real problem. Mosquitoes, flies and stench are normal and a great deal of infection can easily arise in such surroundings. Although it is a requirement under the amendment to the Factories Act that building plans be approved before any building can be constructed, in practice this does not apply to Jua Kali. Buildings go up overnight and the workers are in full swing the next day. Their stores are very tiny and congested. A few workers even sleep on the site, to ensure the safety of their products. The buildings are temporary since these people can decide to move to another area or open space elsewhere at any time.

4.5 Environmental policy in Kenya The first attempts of environmental policy formulation in Kenya took place during the late 70s and early 80s. World wide recognition of the Brundtland report, issuing the concept of sustainable development in 1987, and the preparations for the Earth Summit in Rio in 1992 were, at least for most countries, milestones to which added to speed up the process of environmental policy making. In Kenya, a first milestone was the establishment of the National Environmental Secretariat (NES) in the late 70s. As a part of the Ministry of Environment and Natural Resources, the NES is be the co-ordinator of

50


all environmental issues relating to governmental policy. At the local level, this responsibility lies with Environmental Committees, recently established by the local authorities. In particular, by-laws at local level can have a crucial role in protecting the local environment as they relate to matters such as water pollution and the dumping of waste. The schedule of the role and function of the NES is quite ambitious. One of the 8 divisions of the schedule is called "Industrial Development, Infrastructure and Environmental Impact Assessment" and was assigned to monitor, evaluate and, if needed, to interfere with industry and infrastructure development programmes. It was assigned the tasks of developing and promoting ambient, discharge and technology standards for the minimisation of air, water, biotic and noise pollution, and advising New Projects Committees and Financing Institutes on environmental factors to be taken into account prior to approval (Kenya Government. 1982). The control of industrial pollution had been identified as a priority area in the 1979 National Environmental Management Policy. The National Environmental Secretariat viewed environmental impact assessment (EIA) as a principal tool for achieving its environmental protection objectives, among others, in the approval for new industrial facilities. The actual use of EIA however, has been hampered because NES appeared to be powerless to force compliance. In the early 1980’s, NES began to use the InterMinisterial Committee on the Environment (IMCE) as a forum for promoting its own environmental protection goals. The members of IMCE include most of the major ministries such as Industry and Water Development, as well as academic institutions. NES incorporated these members in its decision-making process regarding environmental management, and in doing so gained their support and co-operation. As a result, NES managed to implement EIA requirements for private projects, such as a proposed large tannery in Thika, due to its ability to use the legislative-based authorities and sanctions of the IMCE members (Hirji & Ortolano, 1991). Although some achievements have been made, the National Environmental Secretariat has never met the requirements stated prior to its establishment. NES has never been fully staffed or equipped, and therefore has not been able to become a powerful actor between the dominant Ministries. In 1993, the National Environmental Action Plan (NEAP) was initiated as a blueprint for integrating environmental management into development planning. A legal framework was to be developed within the National Environmental Action Plan. Among other objectives, NEAP has aims to review relevant laws in order to rationalise the framework and to provide a more effective means of enhancing environmental management, protection, implementation and deterrence. It is hoped that this will set out an environmental strategy, ultimately resulting in the adoption of a comprehensive national environmental policy (Ministry of Environment and Natural Resources, 1994; and Mutiso, 1994). This process is, however, proceeding very slowly. NEAP has been staffed and institutionalised within the Ministry of Environment and Natural Resources. Tasks and responsibilities partly overlap with those of NES within the same Ministry, and until now it is still unclear which of the two will mainly be responsible for co-ordinating environmental policy in Kenya. Currently, policies relating to the environment are sector specific, each being formulated by the Ministry concerned. Although not incorrect as such in its approach, it has resulted in the duplication of efforts and in conflicting objectives. For instance, the


51

Public Health Act and the Water Act both empower their respective Ministries to monitor and control water pollution. Conflicting objectives can be found in the Ministry of Agriculture advocating the clearance of forests to make way for agricultural use, while the Ministry of Environment and Natural Resources advocates their preservation (Kengo and Ministry of Health, 1991).

4.5.1 Integration of environmental policies

Overlaps and gaps within the environmental policy framework have been recognised since the early eighties. In 1980, NES produced a Draft Bill in an attempt to formulate an overall framework for the scattered environmental legislation in Kenya, but it never made it to Parliament (Shah and Awori, 1996). In 1987, the United Nations Environment Programme (UNEP) offered assistance in formulating a new Environment Bill, without visible success. It was in 1994, under guidance of the World Bank that a committee of experts prepared a Draft Bill which was discussed at a National Seminar. The Draft Bill, called the "Environmental Management and Co-ordination Bill 1995" provides a comprehensive institutional framework at national, district and local level, integrating environment-related policies. It announced the establishment of a representative body, the National Environmental Council, representing government institutes, universities, major economic sectors and NGOs, functioning as a supreme body for policy formulation. Execution of these policies is assigned to a new executive body, the National Environment Management Authority (NEMA) at national level. The Draft Bill was expected to have been passed through Parliament by September 1997, but as of early 1997, it still has not been passed.

4.5.2 Environmental regulations affecting industries The Seventh National Development Plan of Kenya contains a section on environment, which states that: “Renewed industrial growth will have to come in terms with new rules and standards for environmental protection, especially with regard to industrial emissions, resource use, waste disposal and conditions in the work place. For sustainable industrial production and economic growth, the industrial sector needs to become more energy efficient, more resource efficient and less waste producing” (Kenya Government, 1994: 173) Kenyan environmental policy concerning industry is currently at the stage of developing laws and by-laws and empowering executive bodies. Basic tools such as environmental impact assessment and environmental quality standards do exist on paper, but appear to be under-utilised. Up to the middle of the 1970s, manufacturing industries were under very limited obligation, legal or otherwise, to control pollution. Environmental care within the factories was dealt with by the Factories Act. This act stipulated the protection of workers against chemical pollutants, noise and physical injuries by moving parts of machinery. Officially, the Factories Act provides for the health and safety of persons employed in factories. The smallest enterprise, while formally not exempted from this law, are usually

52


not forced to comply. Apart from the Factories Act, the Water Act, the Public Health Act and the Penal Code are the other main legislative instruments for pollution control. With regard to emissions to the air, the Penal Code and the Public Health Act provide the key requirements. The Penal Code states that ' any person who voluntary pollutes the atmosphere in any place, so as to make it noxious to the health of persons ... is guilty of misdemeanour' . Nuisances to be dealt with in the Public Health Act are factories giving rise to ' smells or effluvia which are offensive or which are injurious or dangerous to health' , or ' chimneys emitting smoke in such quantity or in such manner as to be offensive or injuries or dangerous to health' . There are, however, no permit requirements regarding emissions to the air nor any national standards for these emissions. The enforcement of the Penal Act and the Public Health Act is mainly in response to a public complaint. In addition, Public Health Inspectors and municipal authorities may carry out inspections and monitoring of air emissions. In the case of discharges to water bodies and sewer systems, there is more legislation available. Key legislation are the Local Authority Act and the Water Act. The main water pollution requirement for industrial operators is that any waste water discharged to the sewer must comply with the Local Authority Act C.265, and discharges to water must comply with the Water Act C.372 quality standards. National standards for waste water discharges into public water courses and sewer have been established by the Ministry of Lands, Reclamation, Regional and Water Development. The standards are not written into the permits but authorities use them for compliance checking and for prosecuting offenders. Any industry requires a general operating permit or occupational certificate as well as specific permits for discharges to the sewer and to water, granted by the local authority. Compliance with national and local discharge limits is enforced by the municipal authority and the Ministry of Water. Local authority officers can enter the premises without prior warning to collect samples for analysis. Local authorities are responsible for industrial waste management. Relevant items of legislation are the Public Health, Water and Local Government Acts. The management of hazardous wastes is covered by the Radiation Protection Act, the Penal Code and Dangerous Drugs Act. Generally accepted as hazardous are flammable substances (solvents, oils) corrosive substances (acids, pickle liquors), reactive substances (cyanide), toxic chemicals (heavy metals) and radioactive substances. All activities involving the storage, transfer and disposal of hazardous waste must be licensed by the local authorities. The Disposal of non-hazardous solid wastes is controlled under the Public Health Act. However, there is no definition or list of non-hazardous solid wastes and Permits for disposal are not required. Chemical storage at industrial locations is legislated by the Pharmacy and Poisons Act, including a list of chemicals that are regulated, and by the Factories Act. The latter requires that a person handling and/or storing chemicals must register the chemicals and activities with the chief inspector of the factory inspectorate. Storage requirements are also listed in the Act. Public Health Department officials within the local authority supervise activities at waste landfills and municipal incinerators in accordance with the requirements of the Public Health Act. Industries can be ordered to improve their performance and given a specific time within which to do so. Fines, the withdrawal permit withdrawal and, ultimately, closure are among the available penalties for non-compliance with orders. The

53


local authority is empowered to check that an industry is complying with the certificate of registration issued by the Ministry of Labour. Despite the legislation and acts covering industrial pollution, compliance with their requirements is rare in Kenyan industry. Small enterprises are at the bottom end of any eventual inspection round of public health officers. Besides, the several environmental requirements, scattered over different Acts, lack an overall legal institutional framework. A report on the institutional framework of environmental management, made back in 1980, stated that: “what is missing is not the laws, but the legal (policy) framework providing a philosophy of environmental management in Kenya” (Kinyanjui & Baker, 1980) As stated earlier, attempts to build such a framework are underway, as in the National Environmental Action Plan and the Draft Environmental Management and Co-ordination Bill 1995. Once fully issued, these can function as a reference point for all environmental laws and instruments in Kenya.

4.6 Role of different actors in Policy, Industrial and Societal Networks The study of small-scale industries encompassed the mapping of different social networks related to industry and environmentally sound production strategies. In order to formulate supportive strategies in these policy fields, an inventory of relevant actors to initiate or implement them is needed. Figure 4.1 below gives a schematic overview of some of the actors actors involved in the small-scale industry and the kind of networks in which they are situated for the purposes of this study.

industrial network K-MAP

KAM

Min. of Commerce and Industry

FKE

SSI sector Jua Kali Ass.

KIE MRTT&T

Kirdi

K-Rep Kengo

societal network

Figure 4.1: Networks encompassing the small-scale industry sector in Nairobi

4.6.1 Actors in the field of policy

P o l i c y n e t w o r k

54


The policy network concerns industry-government relations from a politicaladministrative point of view. Many government institutes are involved in activities supporting towards small-scale enterprise development, the most important one being the Ministry of Research, Technical Training & Technology. Other Ministries which deal with the issue of industrial development are the Ministry of Labour and Manpower Development; the Ministry of Commerce and Industry, which is the overseeing body for industry in Kenya; and the Ministry of Planning and National Development (Ombura, 1996). The latter two have a small enterprise development unit, but these are, like the one at MRTT&T rather weak. Some financial quasi-governmental institutions, such as Kenya Industrial Estates (KIE), have been specifically designed for lending to the small and medium enterprise sector. No less than 28 Ministries in Kenya play a role in environmental protection and natural resource management (Juma & Munro, 1989). Many of these deal with agriculture and land based resources and the like. Relevant for environmental pollution by industries in urban centres are the Ministry of Environment and Natural Resources, Ministry of Energy and the Ministry of Health. In Nairobi, the Nairobi City Council is the main agent to deal with, concerning registration of business, licences, and the like. Some Ministries have their own offices at local level, like the municipal health officers.

4.6.2 Societal actors The group of societal actors consists of industrial representative organisations on the one hand, and civil society organisations dealing with the different external effects of smallscale production on the other. Among these organisations are the labour, environmental, consumer and local citizens groups. In the societal network several NGOs, both national and international, and research groups are active. There are also several programmes for small-scale industries from bi-lateral and multi-lateral development co-operation. there are In total there are over 50 public and private organisations, including NGOs, providing assistance to the informal sector. Kenya has a large and active NGO community with an estimated 11,000 groups engaged in activities related to environmental protection and natural resource management. These range from small, local tree planting groups to large national associations such as the Wildlife Clubs of Kenya (Juma and Munro, 1989) . However, only a few organisations are involved in the field of urban environmental pollution.

4.6.3 Actors within the industrial sector The industrial network is built around firms, their entrepreneurs and intermediate organisations such as branch associations and trade unions. However, these organisations are mainly oriented towards the formal sector. Apart from the entrepreneurs in the smallscale sector, the relevant network here consists of the Jua Kali associations and


55

organisations such as the Federation of Kenyan Employers (FKE), Kenya Association of Manufacturers (KAM) and the Small Enterprise Professional Service Organisation (SEPSO). Other organisations linked with small businesses are mentioned in annex 1. Some of them can also be considered as societal actors.

4.7 Conclusions In Kenya it is increasingly recognised that industrial development and environmental management are closely related. Since the early eighties, efforts have been undertaken to create institutional capacity and a policy framework to deal with issues of (small-scale) industrial development on the one hand and environmental management on the other. However, in the fields of both industrial and environmental policy, there are some severe shortcomings. There is a large gap between policy objectives and the implementation of policy measures and guidelines, either caused by non-realistic goals or by the inappropriate organisation of government effort. The result is that although the main problems are indicated in several policy documents, they remain unsolved. There is no proper planning for the growing numbers of small industries, there is no answer on how to solve the dilemma of the ‘Missing Middle’ in Kenyan industrial structure and there is no indication that the severe urban environmental pollution caused by both large and small-scale industries will get the policy attention it deserves. Given this overall framework of industrial and environmental policy in Kenya, and given the main actors which might be involved in supportive strategies towards the smallscale enterprises under study, the focus is now directed towards some specific small-scale industries in Nairobi’s industrial areas. Chapter 5 presents the case studies of three metal enterprises so as to point out environmental and occupational health problems and the possibilities and constraints on solving them.

5 Case Studies: Practices of Metal Working in Nairobi 5.1 Introduction In order to reveal some specific opportunities and constraints in dealing with environmental issues in small-scale industrial enterprises a case study approach was chosen. The case studies involved three small-scale metal manufacturing enterprises at different industrial sites in Nairobi: an electroplating enterprise, a foundry with a metal engineering section, and a sheet metal fabrication workshop. The studies entailed a survey and mapping of the locational, socio-economic and environmental profiles of the selected enterprise. Options for cleaner production were identified and discussed with the enterprise managers who are also the owners. In order to assess possible external support to realise these cleaner production options, the networks (policy, industrial and social) in which the enterprises operate were analysed. The findings of the case studies are presented in this chapter, starting with a general overview of the sector.

5.2 Small-scale Metal Working Sector in Nairobi It is widely recognised that metal working industries, both in developed and developing countries, play a vital role in the process of industrial development. They perform a special function in inter-industry linkages as suppliers of capital goods to all sectors and as a purchaser from other sectors and sub-contracting firms. Metal working industries contribute possibly more than any other industry to the training of labour in technical and management skills, to the creation of production and design capabilities, and to the improvement of organisational methods (Mikkelsen, 1987). According to Mikkelsen, (1987), the metal working industrial sector in developing countries in general can be divided into three segments: • A modern sector: both large and medium-sized undertakings. The same equipment, materials and procedures are used as in comparable work in industrialised countries; • An intermediate sector; mostly composed of small and medium sized firms, many of which have grown up spontaneously within the country concerned. The products may be copied from those produced in industrialised countries, but are usually produced on older and less specialised machinery, and work methods and organisation have been developed empirically; and • A traditional sector; dominated by small and micro-enterprises. The emphasis is on manual work mainly using hand tools and local materials. Often, the work can be

58


described as subsistence self-employment as compared to entrepreneurial employment for the other two sectors.

5.2.1 Metal work in Nairobi In Kenya, the number of small-scale enterprises in the metal sector is almost 15,000 and these employ nearly 30,000 people. Most of these enterprises (94%) have less than 5 employees (Parker & Torres, 1994). Of all the metal-working activities in Kenya, the most extensive is sheet metal fabrication. This process requires the least technical skill and the fewest resources, and thus has become a subsistence activity for many. The majority of the sheet metal fabrication industry is run on a small-scale and is very informal, using only simple tools and equipment. Hand-operated tools have been developed locally for performing operations such as straightening, bending, stretching, cutting and riveting sheet metal. The range of products is diverse, comprising boxes, tanks, gutters, car bodies, fences, various kitchenware and other simple appliances. In Nairobi, the largest concentration of these workshops is to be found in the eastern suburb of Kamukunji, not far from the city centre. This area is occupied by more than 2000 metal workers. The site is vividly described by Kenneth King in his recent book Jua Kali Kenya: “The heaviest duty of all, quarter of half-inch steel shallow, round plates are the awful products of the very back row of Kamukunji. Here there sit sweating smiths with huge hammers, fashioned roughly out of great lumps of metal. With these, all day they manage with what looks like massive strength to put the shallow depression into the great plates of originally flat steel, and also cut them into rounds, deftly holding the steel against steel wheel rims with their bare feet. The noise is deafening, the scene like some image of an inferno, with sinners being punished for hundreds of years.” (King, 1996: 57). Another metal Jua Kali area is Mathare, which employs several hundred metal workers. Although on average these workshops employ only 1 to 2 workers, some have up to 10 employees, including apprentices. More specialised operations like welding, casting, and electroplating are generally carried out in enterprises with more and highly skilled workers using more specialised, electric machinery such as lathes, mainly purchased second hand. Casting operations involve the melting of scrap metal, usually aluminium or brass, and shaping the melt into the desired object using a mould. Most casting or foundry workshops are also involved in metal engineering using lathes and polishing instruments. Their clients are mainly hotels, institutions and shops. There are quite a few small foundries, mainly melting aluminium, spread all over the city. Some are doing very basic operations, others are specialised foundry sections operating as a department of larger enterprises. Around ten small enterprises have foundry as their core activity, having about 10 employees each. There are only three large foundry mills with between 50-350 employees, all at Industrial Area. The foundries, both small and large, use scrap metal as part of the raw material. Of the many metal operations in Nairobi, electroplating is the most sophisticated process, requiring a significant resource outlay and a high degree of technical capacity. Electroplating involves depositing a thin coat of one metal (in solution) over another

Practices of Metal Working in Nairobi

59

utilising an electric current. Nickel, zinc, chrome, brass and copper are most often used for the process. Only a few electroplating operations exist in Kenya. There are three enterprises in Nairobi with electroplating as their core activity, all operating at Industrial Area. These are small-scale enterprises employing around 15 workers. Several small electroplating units, with 2-3 employees, operate in-house within other small enterprises or within large enterprises such as Kenya Airways and Kenya Rails. In Mombassa, in addition to some small ones, there are two large electroplating operations servicing the shipping industry. There used to be a very large and modern electroplating enterprise in Nakuru, fully automated and with a wastewater treatment facility, but after withdrawal of a multinational order it ceased to exist. Another characteristic of the Kenyan metal sector is that the number of female owners is very low, according to one survey less even than 3% (Ondiege & Aleke-Dondo, 1991). One hardly finds any female employees in this sector either. The nature of work is traditionally male dominated. Only in the collection of scrap metal can some females be found.

5.2.2 Problems and prospects The Government of Kenya views the development of the metal and engineering sub-sector as a pre-requisite for laying the foundation for self-reliant and self-sustaining industrial growth (Ministry of Industry, 1981). Metalwork enterprises belong to the highest valueadded activities in Kenya’s small enterprise economy. It can be argued that the metal artisans enjoyed government support because of their ability to produce such importsubstitution items as cooking stoves, farm equipment, and water containers, thereby saving valuable foreign currency (Macharia, 1992). This is in contrast with the continuing police harassment of other Jua Kali sub-sectors. However, the prospects and problems of the small-scale metal industries basically do not differ from the other small-scale sub-sectors in Nairobi. A 1988 survey (Ondiege & Aleke-Dondo, 1991) of 28 informal micro-enterprises in the metal sector in Nairobi discussed the perceived problems, lack of capital being the most important. Assistance was sought from NGOs and from fellow informal enterprises. However, only a few mentioned government or the formal sector as a possible source of assistance. From a larger survey of 244 small metalwork enterprises in Nairobi in 1988-89 (Ondiege, 1996) appeared as well that lack of capital retards the pace of growth and development of the firms. The entrepreneurs stated that they had limited access to formal sources of credit, but a lack of capital may also be attributed to inadequate revenues due to poor management and/or poor marketing. Inadequate working capital leads to sub-optimal levels of production and employment. Funds for business expansion mainly have to be generated from within. The estimated amount of capital required to create a full-time job in this sector is about $310 (Ksh 15,500). Average monthly sales volume and gross saving are $200 (Ksh 10,250) and $90 (Ksh 4440) respectively. The capital stock, or capital equipment size, varies considerably between workshops. Out of a sample of 68 metal artisans in Kamukunji, two-thirds had less than Ksh 2500 of

60


equipment, and of this group the majority had even less than $20 (Ksh 1000) (King, 1996: 117). This is not surprising considering that the majority of Kamukunji workers are involved in manual operations with only simple hammers and anvils. For them, important considerations are the supply of cheap materials and a modest market for their products. The market for products from the informal metal sector is slowly decreasing. Indeed, the metal products of the informal sector in Nairobi are regarded as of inferior quality and are often less reliable than imported or mass-produced goods (Kabecha & Thomas, 1995). Although it is commonly believed that the small-scale sector produces ‘quality for the poor’, the sector rather seems to represent ‘poor quality’. The artisans have very low levels of capitalisation, little education, no training outside the sector and little knowledge of the products and processes of the formal sector. Thus, few improvements in design or production can be expected, although this will be needed if informal products are to continue selling on domestic markets. Working with scrap metal itself represents a limit to the possibilities for product quality improvement.

5.2.3 Environmental aspects Little is known of the environmental impact of small-scale metal industries in Nairobi. The environmental impact of an individual small metal working enterprise is likely to be relatively limited. However, with thousands of small metal enterprises, their joint contribution to environmental pollution in the city is likely to be substantial. Most of the environmental problems have local impacts and affect the workers. The problems are especially significant because of the residential location of many enterprises. The largest section, sheet metal fabrication, has problems with noise and occupational health hazards, soil contamination with metal parts, metalworking fluids and paints. Foundries consume energy and contribute to air pollution. Although only a few electroplating enterprises exist in Nairobi, their release of very toxic waste streams may cause major environmental deterioration of receiving waters. A special feature of the metal industry is the recycling of scrap metal. The sector thus contributes to waste minimisation. Limited information exists on the socio-economic characteristics of the informal waste collectors in Nairobi. Officially, one needs a government licence to trade in scrap metal. The lengthy licence process (6-12 months), however, discourages many even to apply. A 1988 study among 256 garbage collectors of Nairobi found that scrap metal is a popular item, ranked second after paper (OdegiAwuondo, 1994).

5.3 Electroplating Enterprise, Industrial Area 5.3.1 Locational profile This enterprise is one of the three studied and is situated in Nairobi’s Industrial Area, amongst various large and medium-sized enterprises operating in food processing, leather


61

tanning, textile dyeing, cigarette manufacture and brewing. During the early establishment of industries in Nairobi, the Industrial Area was zoned according to the type of industry. Factories that are generally known to cause pollution or produce toxic wastes such as heavy metals were situated to the eastern most part of the Industrial Area on Lunga Lunga, Mogadishu and Nanyuki Roads. Ironically, the first industries were attracted to this area by the availability of water from the Ngong River that cuts across the industrial area and was used as a receiver of their wastes. The early factories were mainly simple industries such as yellow soap industries and grain milling. With time, the area has grown in terms of the number of industries and their complexity and today it hosts many large multinationals. The selected enterprise for the case study is a small electroplating company. Several electroplating processes are in use, and the enterprise has both a foundry and metal engineering department. The plant is located along the main road. The location of the firm was determined by affordability and the proximity to clients in Industrial Area. No conditions were set by authorities and the enterprise took whatever place was available and suitable. The plot was initially rented. All the current sheds were made by the enterprise, except the building at the front and at the back. The building of sheds has been done incrementally as the business grew. In October 1996 the company bought the land providing opportunities for expansion. Infrastructure The industrial area is relatively well served in terms of infrastructure with roads, water, power and sewerage provided although there are occasional failures and a lack of maintenance. Often the enterprise does not have water during the day and the water is collected at night in a tank. Sometimes water is taken from another enterprise which has a water basin. Water consumption amounts to 850 litres per day. Water is inexpensive, about Ksh 10 per cubic meter. Sewer lines are provided to within 200 feet of most industries to facilitate them to connect after pre-treatment, where necessary. Every industry within this distance of a sewer line must connect by law provided they meet the municipal effluent standards. However, many industries still use storm-water drains to discharge to rivers or connect to sewers without meeting the stipulated pre-treatment standards. This is mainly attributed to a lack of enforcement of existing laws by the government and municipal departments that deal with pollution control, and lack of co-operation by the industrial sector. The sewerage charge is low (less than Ksh 1000 per month). The sewer is shared with the other industries and runs to one of two treatment facilities in Nairobi, after which the effluent is released to a stream. Occasionally the sewer becomes blocked and multicoloured industrial waste water is flushed onto the street. Storm-water and open drains flow into the Ngong River to the north. Unfortunately, the Ngong River continues to be a recipient of all kinds of industrial waste as is clearly evidenced by its visibly polluted state. Fish and other aquatic organisms have long since disappeared and this is an indication of gross pollution. Normally, electricity is provided from 6 am to 6 p.m. but blackouts occur frequently, and this causes production losses especially in the electroplating process. In the beginning of 1996, this happened several times a week, but the situation improved in the course of

62


the year. Electricity costs are high, and have gone up with 50-60% the last two years and during draught periods, electricity supply is not reliable. In most of the industrial area, the soils are predominantly black and characterised by poor drainage. These soils overlie impermeable phonolitic rocks. They are usually very difficult to work with and require heavy machinery especially when major trunk sewers are being put in place. When wet they are sticky and glutinous and when dry, they are hard and difficult to break. The roads in the area can be very bad due to lack of proper maintenance. There is a connecting road which was built and maintained by the enterprises themselves.

5.3.2 Socio-economic profile Historical development The electroplating enterprise was started in early 1987 by the Indian owner who is a civil engineer by training. He worked previously as a project engineer with a structural engineering firm in Nairobi. Nobody in his family had initially done this kind of work. The project was started purely out of interest and initially at a loss, in the first six months earning less than during previous employment. The initial capital for starting the job was Ksh 300,000 and half of this money was a ‘friendly loan’ because no credit was available. The equipment was purchased from an auction and repaired. It consisted of an old rectifier and a tank. It took three months to repair the machines, to find premises to operate from and to contract employees. The business started with two employees, a third one following shortly. The owner performed many tasks including marketing and operational tasks. The company started exclusively as an electroplating enterprise to service the industries situated in the surrounding area. In the first month of operation, the turnover was Ksh 6,500 but soon the company began to grow. In September 1987, a foundry was also started within the enterprise with two employees bringing the total number of employees to five. During the first three years of operation, a lot of research and development was done both to improve products and to find alternatives to expensive, imported inputs. This has enabled savings on some inputs and generated some profit. The entrepreneur also improvised on a number of items and developed some from scratch. He started making polishing compounds used in metalwork finishing. Today, the enterprise produces more than enough for its own use so the excess is sold and in effect pays for the polishing costs. Business strategy The firm relies on customers’ orders. In this way, it is very much a service enterprise though the owner is considering the development of his own products. This is an expensive venture and he currently does not have the capital to buy inputs. The enterprise services a wide range of clients with different demands. Builders of public service buses are some of the main customers, but electroplating of furniture, machine tools, sanitary ware and many other objects is also carried out. Lately, the firm has increased its work for the hotel industry. Besides occasional orders made to the metal foundry, the enterprise has


63

now about 32 regular orders. This implies a standardised production of large amounts of the same products. The main orders are the plating of the hand rails used in buses, and scopes for balance scales. The raw materials for electroplating have always been imported, initially from Europe, but now from South Africa and India. The minimum sales volume of European suppliers is too big for the scale of the enterprise. At the beginning, the enterprise operated a small laboratory to analyse the exact composition of the electroplating solutions. However, when production exceeded a certain level, the entrepreneur became too busy to monitor all inputs and the lab has not been used since then. Currently, the electrolytes for the plating baths are measured by mere estimation, based on experience. The losses which are likely from this procedure are considered to be less than the costs of operating an in-house laboratory. The owner describes his enterprise as ' semi-informal' , in the sense that production and work procedures are more or less ad hoc. The size is too big for an entirely informal operation and too small to operate in a formal way. Liberalisation is drastically affecting electroplating industries in East Africa because it is hard to compete with the cheap metal products being imported mainly from Southeast Asian countries. The enterprise must diversify to survive. Employees This enterprise now has fourteen employees whose ages range between 21 and 50 years with an average age of 34 years. The number of employees is rather stable although employment of casuals is a common practice when the enterprise has extra work. For example, in the autumn of 1996 two contract workers were hired doing piece work polishing. Education levels vary greatly. Two employees have not been to school while seven employees had reached primary standard five and the remaining had secondary education. Thirteen of the employees had no training before joining the enterprise. A total of eleven employees had worked elsewhere before coming to this enterprise, but none of the employees had worked in an electroplating plant before coming to the current enterprise. Those who had worked elsewhere indicated that they performed almost the same type of work as they were currently doing including casting and moulding, welding, polishing, packing, mineral water processing and fixing cars. The tasks performed daily include moulding, machine cleaning, casting, fetching water, polishing, foundry work and electroplating. Although some of the employees are multi-skilled most of them tend to stick to one operation most of the time. They indicated, however that they are occasionally expected to perform duties other than their daily routine. Ten of the employees are employed on permanent terms while four are employed as casuals. The employees on permanent terms had joined employment as casuals and slowly graduated to current status. The monthly incomes of the employees range from Ksh 25005000 with the average income of Ksh 3562. The relatively high pay in this enterprise may be due to the nature of the specialised work that the enterprise does and the fact that being a semi-formal establishment, it needs more or less permanent workers. In working with orders, it is also important to make sure deadlines are met. Most employees work five and

64


a half days a week, eight hours a day. Whenever they work over-time they are compensated for this.

5.3.3 Environmental Profile Production process There are four main production processes carried out at the enterprise: electroplating, polishing, foundry work and engineering. The largest department is the electroplating operation. Here, several electroplating processes take place (zinc, copper, nickel, brass and chrome plating). Some of them are used for long-term orders, some for ad-hoc production. In the foundry, several products are made, ranging from artisan brass objects and metal grates for coffee machines to machine parts. This is a very flexible production unit, dependent on demand. There is a polishing department, which is highly labour intensive because mechanisation would diminish the flexibility of the production. In the engineering department, products include queue stands for banks, chairs and tables for hotels. A general overview of process steps in the electroplating enterprises shown in Figure 5.1.


65

metal items

scrap metal

metal engineering product

melting

pickling rinse

casting

polishing rinse degreasing rinse Copper

Zinc

rinse Nickel rinse rinse Chromic acid passifying Chromium rinse rinse buffing product

Figure 5.1: Process steps at the electroplating enterprise Electroplating is a process by which a metal is deposited on another surface, which is usually a metal but can also be a special synthetic, by use of electric current. The object to

66


be plated (work piece) and the coating metal are dipped into an electrolytic bath, usually containing a salt solution of the coating metal. The electrolytic bath contains two electrodes: the anode and cathode. The work piece acts as the cathode and the plating metal acts as the anode. When an electric current is passed through the solution the anode dissolves into the bath and metal ions are deposited onto the cathode forming a coating of the metal on the work piece. Several preparatory steps proceed the actual electroplating. The metal surface to be coated is invariably covered with rust, dirt or oils and grease which must be removed prior to coating. This surface must be treated to ensure that the coating will adhere. Scale is removed by mechanical means (preening, wine brushing) or by immersing the metal piece in a sulphuric acid bath (pickling). Dirt and oil can be removed in alkaline or phosphate baths. After pickling the material is rinsed and polished with abrasives and wax compounds. The next step is degreasing in an alkaline bath. The various cleaning steps require water rinses to remove the bath materials from the base metals in order to stop further chemical or cleaning action. The most common types of electroplating are nickel, zinc, chrome and brass plating. Copper is a universal undercoat. Nickel is a mandatory undercoat for chrome but even then copper is needed under the nickel. Highly toxic hexavalent chromium is used for chrome plating. The main chemicals used in the electroplating are nickel sulphate, zinc cyanide and copper cyanide. Recently, an acid copper sulphate bath has come into production, replacing the copper-cyanide for copper-copper plating. Passifying of zinc is done by chromic acid. Rinsing between the different plating steps is standard procedure. A polishing soap is used last to improve the shine on the plated surface. This operation is called buffing and is done with soft non-abrasive compounds. Today, the company has five rectifiers (devices to reform and stabilise electrical power input), one compressor, seven electroplating tanks running (both static baths and barrels are used) and a capacity for eight polishers on four machines. Two of the rectifiers are locally made but the original rectifier (made in the 1950s) has never broken down. In the beginning of 1997, three more plating baths were added to facilitate cyanide-free zinc and copper plating. The foundry within the same enterprise premises makes both aluminium and brass products. The process consists of melting down metal in a crucible, pouring it into a mould made of hardened sand, and, after releasing the object from the mould, polishing it. The main inputs in the foundry are scrap metal, purchased from scrap metal dealers, sand and molasses (for bonding of moulds) and chalk to facilitate the release from the mould. The crucible is heated by furnace oil diluted with industrial diesel. In the fabrication department, many products are made such as nuts and bolts, some of which come from the foundry. The equipment includes two lathes and a milling machine. Waste streams The main waste streams occurring at the electroplating enterprise are: • Waste water containing metals, acids, cyanide, etc., from rinsing and spills from the electroplating baths


67

• Fumes form the electroplating baths • Smoke and solid waste (metal slags and sand) from the foundry • Dust from polishing At present, the working conditions are far from clean. The floor is always wet with plating solution mixed with saw dust and even mud. Waste waters comes from cleaning operations to remove scale, dirt and oil, from pickling operations, drag-out and rinsing of the coated work piece. The factory uses about 850 litres of water per day mainly for rinsing operations. The rinse waters and spent baths contain suspended and soluble metals, acids and cyanides, oils and grease, and materials dissolved in the cleaning and preparation step. Disposal of the spent coating baths, spills, leaks and sprays contributes only intermittently to the waste water polluting load, but its impact can be pronounced. The most significant environmental problem relates to the spill of electroplating bath chemicals during drag-out. For one bath, used for nickel plating of scoops, a drag-out loss of 40 grams nickel per day, or 11-12 kilograms per year, was estimated. There is wastage of plating solution as most of the drag-out is not returned to the bath because it is diluted with water and would affect the concentration of the bath or cause it to overflow. Only very little drag-out is added to the bath to top-up for evaporation and other losses. The used rinse water flows freely into the drain. Besides drag out losses, the next most important problem is the occasional release of a used bath, directly into the drain. Once a zinc-cyanide bath was emptied in the drain and crystallised causing clogging. The enterprise currently has 250 litres of highly toxic chromic acid waste from an old bath, which they do not know what to do with. The baths are in use for many, many years, with all kind of life extending taken measures to retain the desired chemical quantities. The baths are conserved as they are very expensive (an 800 litre nickel bath costs Ksh 250,000, and lasts about 3 months, after which purification and addition of new chemicals is required). The problem lies in the accidental loss of bath contents, which has considerable economic and environmental impacts. At one time, a nickel bath was released to the drain due to a defective pump, and recently a 200 litre nickel sulphate barrel was lost due to corrosion of the filter pump. Drag-out losses from the nickel plating of scoops For an indication of the conditions under which the plating processes are executed and the implications for the release of waste through drag-out losses, an assessment was done of one particular plating bath. One of the nickel plating lines was selected, the plating of balance scale scoops, which is done on a regular and standardised basis. Bath operating conditions and drag-out losses were analysed. It has to be stressed that the chemical analyses show only an average over a limited period of time and process operating conditions. Figure 5.2 details this plating line.

68

Pollution Control of Small-scale Metal Industries in Nairobi scoops (pickled & polished)

alkaline degreasers

degreasing

rinse 1 COD (detergents)

Cu (anode) NaCN

Copper undercoat

Cu2+ (filter)

return flow drag-out rinse 2

Ni (anode) NiSO4 NiCl2 H2SO4 HCl H3BO3

polishing waxes

nickel plating

Cu2+, CN2-

Ni2+ (filter)

return flow drag-out rinse 3

Ni2+, H2SO4, HCl, H3BO3

buffing

plated scoops

Figure 5.2: Nickel plating of scoops and the associated waste streams The average nickel concentration (total) in the bath is about 66 grams per litre. Although some figures were found in the literature on bath operating conditions for nickel plating (see Table 5.1 and annex 2), there do not seem to be any specific optimal bath


69

operating conditions. Chemical operating conditions vary according the product to be plated, the quantity and aimed quality of the end product and the process time. Chemical concentrations used in the nickel bath were found to fall within the range mentioned in the literature, but were on the low side which indicates that there is not an excessive use of bath chemicals, and environmental pollution through drag-out should not be excessive. A simple method was devised to assess the amount of plating solution that is lost through drag-out and thus could be saved by retaining the work pieces above the plating bath for a minute longer, before placing it in the rinse water tank. Present practice entails simply shaking the scoops above the tank and placing it in the water tank. It was found that if each scoop was suspended for one minute longer, 6 millilitres of plating solution would be recovered. An additional minute longer would add only 1 millilitre to the recovered plating solution, thus one minute of hanging the plated object above the bath would be the optimum time. This would imply a saving of 600 millilitres for 100 scoops each day, the average number of scoops plated. This is equivalent to about 40 grams of nickel per day, or approximately 11.5 kilograms per year. The original cost of a plating bath is Ksh 250,000 for 800 litres. Each day there is therefore a minimum loss of about Ksh 200, or Ksh 50-60,000 per year. This has to be added to the costs of brighteners and buffers used daily. There also appeared to be a considerable loss of nickel through the filter. Every 100 grams of dry weight filter residue contained approximately 28 grams of nickel. This figure was judged to be too high according by the enterprise manager. Table 5.1: Bath operating conditions for nickel plating

Chemicals Ni2+ NiSO4 NiCl2 H3BO3 pH Temperature (ºC)

Chemical Levels in Baths Case Study (grams per litre) 28-37 111-149 20-23 52 4.6 30

Range Found in the Literature (grams per litre) 60-107 100-413 30-75 30-47 1.5-5.5 46-71

Environmental effects The release of wastewater from the electroplating enterprise can have serious impacts on aquatic ecosystems and human health. Toxic waste is detrimental to biological wastewater treatment. The accumulation of toxic cations in sewerage works interferes with sludge digestion by inactivating bacterial metabolism, thus reducing the organic material breakdown. Nickel salts are known to cause the inhibition of the biochemical oxidation of sewage (Sittig, 1978). Nickel salts, both hexavalent and trivalent chromium, and cyanide, are harmful to fish and aquatic organisms. Direct discharge of effluents to the Ngong and other rivers traversing Nairobi to pollute of the larger Athi River which runs through the extremely dry eastern part of the country. This means that the downstream inhabitants who

70


have no other sources of water have to use the polluted Athi water. This may affect their health and that of their animals. Part of the drag-out and spillage at different process steps drain into the soil, seriously contaminating the enterprise’s soil premises. The foundry section contributes to air pollution and solid waste in the form of sand used for the moulds and metal slags. The amount of sand waste is around 3 tonnes per month. In the near future, the entrepreneur will buy a mill for grinding the sand so that it can be reused. The forms of environmental pollution, the contributing waste types and their origin in the enterprise are summarised in Table 5.2.


71

Table 5.2: Environmental pollution related with the main waste streams of the electroplating enterprise Environmental Pollution Water pollution

Soil pollution

Air pollution

Solid waste

Other

Waste Type

Origin

acid: H2SO4, chromic acid abrasives, wax compounds detergents: alkaline oil & grease heavy metals: Cu, Zn, Ni, Cr toxic: cyanide acids (chloride) heavy metals: Cu, Zn, Ni, Cr oil metal chips metalworking fluid paint fumes: acid, cyanide, Cr organic solvents dust gasses: CO2, CO, NOx, SO4 heavy metals: Cu, Zn, Ni, Cr heavy metals: Cu, Zn, Ni, Cr packaging material metal slags sand metal pieces vibration & noise explosion/fire risk: solvents energy use heat

pickling polishing degreasing degreasing plating: drag-out, rinse, bath plating: drag-out, rinse, bath plating: drag-out, rinse, bath plating: drag-out, rinse, bath foundry engineering engineering engineering plating: bath polishing buffing, foundry foundry plating: filter residue plating: sediments storage foundry foundry engineering buffing, engineering storage plating, foundry foundry

Occupational health risks Besides the damage to the natural and physical environment, electroplating operations can cause severe occupational health hazards, such as nickel allergies and skin irritations from chromium. Acids and cyanides can cause biting skin burns, and severe respiratory problems. Toxic gasses evaporate from the baths and employees are exposed to these gasses, as there is no exhaust system or ventilation. Polishing causes a further problem from dust created. Sittig (1978) describes possible health problems from the various pollutants associated with electroplating:

72

• • • •


Chromium is hazardous to humans. It can cause lung tumours when inhaled and induces skin irritation. Copper is not considered a cumulative systemic poison for humans as it is readily excreted by the body, but it can cause symptoms of gastro-enteritis, such as nausea and intestinal irritations, at relatively low dosages. Cyanide is a toxic compound. Hydrogen cyanide is the most acutely lethal, while the cyanide ion is less toxic. Nickel is believed to have a very low toxicity to humans and systemic poisoning of humans by nickel or nickel salts is almost unknown.

The workers identified various risks in their working environment such as machine accidents, burning, electric shocks, dangerous chemicals, and suffocation from smoke in the foundry. There have been minor accidents in the plant, such as burns which have affected four employees and one employee who had his hand broken by a machine. Some employees complained of regular ailments, but it was hard to determine whether these were in fact work related. Protective clothing is available such as overalls, masks, hats, shoes, goggles and welding mirrors, and the workers use these whenever needed. The owner provides his employees with the protective items, however, it remains their choice to use them. The owner felt that without these measures his insurance company would not pay in case of an accident.

5.3.4 Environmental improvements Options The environmental and health problems identified in this report recognised by the entrepreneur and he is particularly aware of the risks of dumping toxic waste in the drain. The enterprise has already taken some environmental conservation measures. These include the use of alkaline degreaser, some reuse of rinse baths, lengthening the life time of the plating baths, and the use of protective clothes and devices. Environmental awareness with the workshop manager and the employees, however, is absent. In the electroplating industry quite a few measures for cleaner production have been developed, substantially reducing pollution loads and with savings of resources (see UNEP/IEO, 1989; EPA, 1992; and Vidmar, 1995). Particularly important is to reducing the pollutant load from drag-out. There are many techniques available for this all of them aimed at reducing losses of process chemicals as drag-out from the plating bath. These include (PRC Environmental Management, 1989): • Operating process baths at the lowest acceptable chemical concentrations • Operating process baths at higher temperatures to reduce liquid viscosity • Withdrawing work piece at a slower rate • Draining work pieces above the process bath, for a longer period of time • Capturing drag-out on a drainage board that drains back into the plating bath • Adding wetting agents to plating bath


•

73

Recovering process chemicals in a drag-out tank and replenishing plating bath with the recovered solution

Several ideas for improved production were discussed with the plant manager of the studied enterprise and he was willing to try some of them. Input material changes, technology changes and improvements to the operating conditions could be made. These are detailed in Table 5.3. The options most appropriate for the operating conditions at the studied enterprise are: • Cyanide-free plating • Water conservation • Drag-out reduction by using drip bar • Reducing wastewater and returning drag-out to the baths by cascade rinsing • Better monitoring of process operating conditions Table 5.3: Cleaner production options at the electroplating enterprise Type Option Input material changes

of

Cleaner Production Measure Replace chromium VI with Chromate III: - blue colour - slight reduction in corrosion protection Cyanide free plating: - copper sulphate

Technology changes

Cleaner objects and alkaline in stead of organic degreasers: - reduced pickling and degreasing Reduction of drag-out: - hanging technique - eco-rinsing - spray rinsing Improved rinsing: - still rinse bath - counter-current flow (plus closed loop) - spray rinsing Improved barrel/bath: - sealed filters - greater part plastic

Environmental Implication

Response of Entrepreneur

- less toxic - no required reduction of chrome VI to III in treatment

- to be considered - depends on client - closer monitoring is a problem

- less toxic - no cyanide detoxification (oxidation) required

- bath added - cyanide tradition (simple monitoring)

- less pickling and degreasing required - less polluted degreasing water

- not possible

- less polluted water

- let’s try - not possible - not practical

- less volume water - less polluted rinse water, if returned to baths

- done - let’s try expensive) - not practical

- less accidental loss - less metal loss

- done, wear out - done for barrels

- done

(loop

too

74

Good housekeeping (operating condition)

On-site recycling

Pollution Control of Small-scale Metal Industries in Nairobi - covering of baths (‘floating plastic balls’) - fume suppressants Different degreasing: - electrolytic - sandblast cleaning Better operation: maintenance & monitoring, inspection - improvement of skills in operation Better process operating conditions: - lower concentrations - movement - continuous filtration - higher temperature Longer viability of baths: - monitoring - filtration - removal sediments - magnets to fish out dropped articles - replenish chemicals - use of demineralised water Drag-out reduction: - longer drip time - wetting agents - shaking / blowing Better rinsing: - movement of product or water - air agitation - separate streams Chemical use: - separate storage, behind closed doors - chemicals recording & administration Different set up: - related baths closer - drain boards - sealed floor - rectifier close to bath Worker protection: - clothes and devices Reuse static rinse: - return to baths

- health and less air pollution (evaporation) - same implication

- to be considered

- less degreasing water

- possible - not practical

- less leakage and accidental loss of baths - efficient use of bath and rinse water

- should be more regular for pumps - tried, difficult

- less polluted dragout - more efficient plating - more efficient plating - less drag-out

- already low - to be considered - done - to be considered

- less ‘used’ baths to be released - less polluted water

- partially done - done - done - done

- very expensive

- done - water is soft

- less polluted water - less polluted water

- to be considered - willing to use them - to be considered

- less volume water - less volume water - treatment/reuse

- product move done by hand - ‘black spots’ - no

- less polluted water

- done - already attempted

- less spills water - no soil pollution - no soil pollution - energy saving

- to be considered - maybe - no - difficult (space)

- health of workers

- provided

- less volume rinse water

- partly done


Off-site recycling of useful byproducts

- heated baths - concentration Reuse filter waste: - dissolve and return to bath Material recovery: - metals: ion-exchange, membrane filtration - bath liquids: cooling and crystallisation - organic dissolvents: destillation Material recovery: concentrated and isolated waste flows - FeSO4 for paint - metal from sludge

75 - if 24h production - not done

- less polluted waste - done Too expensive (in general) - less polluted water - less polluted water

- not done - maybe - not relevant

Recently four new barrels for acidic zinc plating and one copper sulphate bath have been brought into operation, for which the entrepreneur has selected cyanide-free methods for reasons of environmental concern. The copper cyanide bath has remained in use, however, as it is needed for copper-copper plating and a copper cyanide strike may still be needed for zinc base metals (Vidmar, 1995. Cyanide plating is a simple process and is traditionally used. Copper sulphate baths which are highly conductive and have a simple chemistry may be substituted for copper cyanide plating baths.). The applicability of the non-cyanide solutions as replacements for cyanide baths must be considered carefully, as the chelating agents employed in some non-cyanide baths might negatively affect the metal recovery from the waste stream (Sittig, 1978). Furthermore, the enterprise still has a large amount of cyanide in stock and in the ‘old’ bath. A programme of water conservation could reduce the volume of wastewater going to the drain. There is too much moisture wetness on the floor, caused by losses from plating baths, drag-outs and tap water. The floor is not custom built for such a plant and therefore the drainage inside the plant is poor. Minor works on the floor would correct this problem and facilitate the collection of waste water separately or in a central position instead of having it spread all over the place. At present a considerable amount of drag-out solution goes down the drain. A method could be devised to retain the work pieces above the plating bath for a minute to drip before placing them in water, using place hangers, also called drain or drip bars, over the bath.. In a small Indian enterprise doing nickel-chrome rack plating, the introduction of the hanging technique for a nickel bath which plates 400 pieces per day, saved 4 litres dragout, achieving a waste reduction of 461 kilograms of nickel per year. Likewise 4 litres drag-out reduction was achieved in the chrome bath, reducing chrome waste by 276 kilograms per year (Development Alternatives, 1995). Another way to reduce drag-out

76


losses is the use of wetting agents. The combined application of wetting agents and longer drainage times can reduce the amount of drag-out by 75% (EPA, 1987: 26). The entrepreneur has started with a cascade rinsing system which has substantially reduced the amount of wastewater and drag-out losses. Three static tanks are used for rinsing in series, and almost all of the drag-out from the last tank is replenished to the nickel bath. A three-stage counter-current rinse system uses up to 90% less rinse water than a single-stage rinse system (Vidmar, 1995). Moreover, there are opportunities to recover the drag-out losses by making this counter-current rinse system a closed loop with reuse and recycling system of water. The process operating conditions could be improved by a standardised monitoring scheme. In a Dutch example of a medium-sized electroplating firm with 30 employees more than forty different chemicals were used in its semi-automatic rack and barrel units for zinc and nickel plating. The introduction of a system for central recording and administration of chemicals and the automation of chemical dosing, achieved a 25% reduction in the consumption of chemicals in the first year. Because of the resulting savings the payback period of the cost for automating the dosing unit was less than one month (Koppert & Hofman, 1991) The entrepreneur at the studied enterprise in Nairobi keeps abreast of new developments in this area and has in the past experienced a great deal with various production approaches. He is now at the stage of having mastered all the processes and operates the enterprise from experience without any testing procedures. He uses what is referred to as the ‘eyeballing’ method to come up with an educated guess whenever there is a problem. Part of the reason for this is that there is now more work than in the past and thus, there is little time for experimentation. The obvious danger is that in the pursuit of more profits, it is usually the environmental and working conditions that suffer. The entrepreneur is willing to look into alternative operating procedures, such as the use of wetting agents, covering of baths with ‘floating plastic balls’, and the improvement of the plating process by heating up the bath to a recommended temperature which would save on electricity. Higher temperatures decrease the viscosity in the plating bath and reduce drag-out losses (Labrador, 1993). However, heating with electricity is costly compared with water and sewerage charges. Another option is to improve rinsing by movement of the water or object. For example, air agitation in rinse baths can reduce the water use up to 50% (Modak et al, 1996). More investigations require the possibility of eco-rinsing and replacing hexavalent chromium with trivalent chromium. Eco-rinsing can reduce drag-out by 50% but might be difficult to implement due to the possible contamination of the plating baths. Passifying with trivalent chromate would be an interesting option as this chemical is much less toxic. However no trivalent chromium solutions are currently unavailable for hard chromium plating applications. Moreover, the need for closer monitoring and testing could be a problem with this changed process (Dahab et al, 1994). Treatment of the used bath and taking measures to avoid accidental spills will be necessary when a proposed pollution bill is enacted. Although a draft bill exists, it has not yet been presented to the parliament. The owner is willing to neutralise effluent but


77

without legal incentive the costs might be simply too high for him to do this and still remain competitive. At any rate, the entrepreneur maintains that shutting down the electroplating unit is an option for him if strict environmental regulations are introduced. He would then continue with the foundry and metal engineering and move into trade with the added benefit of fewer employees. Several end-of-pipe technologies exist to treat the released waste streams (see for example Sittig, 1978; EPA, 1987; UNEP/IEO, 1989; and de Groot & Heuvelman, 1990). Treatment of electroplating wastewater is usually done in so-called DND plants (detoxification, neutralisation and de-watering). The metals from the resulting sludge can be reused. Concentrated and isolated waste flows are preferable for this treatment method, for example, the use of acid pickling waste for chromium reduction in a treatment sequence. For gasses, provision of exhaust systems and ventilation, especially for chromic acid baths, is recommended after which scrubbers can be used for treatment. End-of-pipe measures for gas and water treatment require a considerable investment which is out of reach for the electroplating enterprise. Nevertheless, stringent standards may in future make end-of-pipe treatment necessary. Prevention of pollution would then save considerably on the necessary capacity and cost of treatment. As example of this, a zinc plating enterprise in Heerjansdam, the Netherlands, has reduced its pollution load 98% by applying cleaner production methods (such as cascade rinsing) and improved wastewater treatment methods (company visit by Frijns and van Vliet, 1996). However, the required investment for its modern DND treatment system alone was DFL 1 million (Ksh 30 million in 1997), a figure totally unrealistic for the Kenyan situation.

5.3.5 Networks relevant to the enterprise As part of the case study, actor networks of which the entrepreneur is a part were studied. This may help in the introduction of environmental measures which require the support of actors outside the enterprise. The networks relevant to the electroplating enterprise are shown graphically in Figure 5.3. Industrial network The enterprise has links with other enterprises within and outside the electroplating subsector. Interactions may take the form of sub-contracting, referrals to customers and attendance of business forums. Although the electroplating firms do not share research and development improvements, they are on relatively good speaking terms. There is not much competition with other foundries because the other foundries are larger and consider this one very small and not a threat to their operations. Relationships with neighbouring firms are cordial though they have little in common apart from cleaning the drains once a week.


78

industrial Chamber of Commerce neighb.ent. competitors KAM clients

Min. Labour

commercial banks electroplating NCC enterprise (health office) policy FKE UNIDO societal Figure 5.3: Networks relevant to the electroplating enterprise There are only two other electroplating enterprises of interest in Nairobi.1 They are more or less similar in size and operate form the same industrial area. Though the enterprises are competing, they are on relatively good terms and sometimes direct customers to each other. There is some degree of specialisation within the electroplating market. At present, the studied enterprise specialises in nickel plating though it also does zinc, chrome, brass, and less frequently, silver plating. On very rare occasions, it has done gold plating Clients are of course the main business contacts. The main electroplating orders come from hotels, automotive body builders and manufacturing industries. The electroplating enterprise works for large and small-scale industries and even Jua Kali enterprises. In general, the enterprise targets industries in stead of individual customers. The clients are regular but the work is rarely routine and is driven by clients demand. As the enterprise slowly moves away from ‘jobbing’, there is some realisation that high volume - low margin production might be a better production strategy. Customers come to the enterprise 1

One electroplating enterprise with 10 employees specialises on hard chrome. This enterprise uses dragout tanks and returns all its static rinse water to the plating baths. The relation with other platers is described as cordial, and the owner would like to meet more regularly to prevent excessive competition. The third enterprise also acknowledges the cordial relations with the other two as they borrow chemicals from each other. This enterprise has 15 employees and does chrome, nickel, brass and zinc plating. In this case, the rinse water is poured out and not recovered to the plating baths. In addition to these three enterprises with electroplating as their core activity, several small ‘in-house’ electroplating units exist at Industrial Area. These have only a few employees and do only small amounts of specialised jobs, such as silver plating. For example, two small-scale enterprises (8 employees) at Industrial Area have a small electroplating unit (2 employees) for small jobs in brass, nickel, copper, and silver. All the rinse water goes to the drain as there are no drag-out tanks. The studied enterprise sells imported chemicals to these small units.


79

mainly through recommendation. Occasionally, the management also attends relevant forums such as workshops and advertises its work. This is mainly done in the Industrial Area. On the rare occasion that the entrepreneur is desperately looking for work, advertisements are placed in local newspapers. There is currently a marketing program in hotels which is bringing in important customers, with orders for lamp shades, wall fixtures and furniture. The foundry and metal fabrication department enable the enterprise to undertake a whole range of operations including the moulding, machining and finishing of metal thus giving this electroplating enterprise an edge over competitors. Occasionally, the enterprise sub-contracts some of its work such as milling, turning, die casting, electroplating work requiring different plating solution, and particularly urgent work. All sub-contracts are given to a collaborating enterprise and sometimes these join efforts to tender for big jobs. Recently, the enterprise took a loan from one of the larger commercial banks to purchase the premises on which it operates. The larger banks, though bureaucratic provide cheaper financing than the smaller ones. There is no specific branch organisation for electroplaters in Nairobi, nor is there a forum for the sharing of technical knowledge. The organisations serving this enterprise include the Kenya National Chamber of Commerce and Industry, and the Kenya Association of Manufacturers (KAM). The Kenya National Chamber of Commerce is most useful and usually informs manufacturers when there are exhibitions and helps with promotions. Kenya Association of Manufacturers serves the interests of manufacturers countrywide. For example, it lobbied for security in the area and as a result they got a police post nearby. It does not give benefits to individual enterprises but is very useful when it comes to common problems. Policy network There are few meeting points between government institutions and this type of enterprise. The entrepreneurs complain that they are affected by too many direct and indirect taxes not fitting their scale of production, plus they encounter excessive bureaucracy, and inefficiency in dealing with government institutions. This enterprise is formally registered with the Kenya government. Though no specific environmental permits are required, the enterprise needs the following general licenses to operate: a government trade licence (manufacturing), a Nairobi City Council (NCC) trade license, and a permit from the Health and Safety Department of the Ministry of Labour. The enterprise pays many taxes including income tax, standards levy, industrial training levy, 50% of individual employee National Social Security Fund contribution, NCC Service Charge and transport levy. Wage regulations are governed by the Ministry of Labour. Officers from the Ministry occasionally visit the enterprise to check files. Environmental and health inspection by the city council is infrequent, and often it is carried out by corrupt officers. The enterprise does not get any support from the NCC or government to run the business. The Jua Kali and large-scale industries get some government support, while the small and medium-sized enterprises get none. There have been some contacts with

80


UNIDO which has a sub-contracting programme to assist small-scale industries to win contracts from larger enterprises. Societal network The enterprise has little to do with NGOs and has not received support from any of them. More than interacting with established organisations, the entrepreneur seems to rely on a network of relatives and family who, for example, provided him with a friendly loan to start the business. The Federation of Kenyan Employers (FKE) gives advice on labour problems. Some of this advice is free while some is provided for a commission. When the problems are more serious and the parties have to come together at a bargaining table the FKE charges a fee for its involvement. The workers are not members of a trade union.

5.3.6 Conclusions The enterprise is non-typical for the Kenyan situation for two reasons: its size and its formal status. The Kenyan industrial sector contains a large number of micro and small enterprises and only very few enterprises of the size mentioned in this case-study. Most formal industrial enterprises are of a much larger scale and can benefit from economies of scale. In this case, the enterprise experiences the disadvantages of being formal, such as the liability for taxation and licensing, but lacks the benefits deriving from economies of scale. On the other hand, its small-scale production allows the enterprise a great deal of flexibility in marketing and product-design. Although specialised in nickel plating, it can take on a diversity of electroplating orders. Another feature which is uncommon compared to other small-scale enterprises is the background of the entrepreneur. As a civil engineer, the entrepreneur has knowledge of state of the art technology and production processes within the electroplating sector. His awareness and knowledge of environmental pollution and risks is up to date. The high pollution load from this enterprise is more a result of low priority given to environmental matters than it is of ignorance. Environmental regulations and proper monitoring could encourage this entrepreneur to take up enforcement and hence improve the environmental output of his enterprise. The entrepreneur is willing to take some environmental measures, and those which are economically viable could be taken right away. Although there is only limited interaction for this enterprise in the policy and societal networks, useful associations could be found within the industrial network to deal with environmental strategies. Practices such as recommending each other’s enterprises to customers could be extended in the direction of more environmentally sound co-operation, such as common purchasing of raw materials to lower the price of more environmentally sound inputs. But without legal and or direct


81

economic incentives, there will be little motivation for environmental improvement at the electroplating enterprise.

5.4 Foundry and Metal Engineering Enterprise, Buru Buru 5.4.1 Locational profile The second case study enterprise in this research is a foundry located on a small commercial estate in Buru Buru (eastern Nairobi). As well as a metal foundry, the enterprise also has a polishing and machining (lathe) section. The site is easily accessible to residents of Nairobi' s Eastlands being located in the heart of a residential district and about 10 kilometres from the city centre. The small industries in Buru Buru cater to the domestic needs of the neighbouring population and provide much needed job opportunities for the people of these areas and beyond. On a 7.5 acres plot are 107 sheds which are rented by the National Council of Churches of Kenya (NCCK) at Ksh 300-600 per month to small-scale and micro-enterprises involved in manufacturing and service industries. The land was allocated to the NCCK by the Nairobi city authorities at very low cost. A European church organisation provided a grant for the construction of sheds and offices in 1980, but the sheds were not occupied until 1987. The entrepreneurs include carpenters, welders, metal fabricators, tailors, mechanics, a food processor (tomato juice maker), screen printers, paint makers, and refrigerator and television repairers. The case study enterprise was started in 1989 when a friend who had two stores at NCCK allowed the entrepreneur the use of one of the stores. The enterprise is located at a part of the estate where about 30 light industry workshops of different types operate, including a sawmill, timber yard, foundry, textile printing enterprise, car repair shop, metal working enterprise and a bakery. The entrepreneur was initially helped by an Asian friend to build his furnace, a process which took three weeks. The entrepreneur is now fully established and perceives the only disadvantage of the current location as the size of the premises which is too small for his increasing operations. He would prefer larger premises form which to operate, but is concerned about the additional expenses and taxes which will have to pay out. Infrastructure The main requirement of the foundry is reliable electricity supply. In the past electricity has been delivered more or less in regular supply but since the beginning of 1995 it has been irregular and the lack of reliable power has become a problem for the foundry. As the estate is officially located within a residential area, power is rationed between 7 am and 3 p.m. The last months of 1996 were particularly bad and have affected operations. A lack of power affects both the electric machinery in the polish- and lathe section as well as the foundry, particularly the electric fan at the crucible. As a result, working hours have been pushed up to midnight and beyond.

82


Although the foundry was initially connected to mains water by the NCCK, nonpayment of high water bills resulted in its disconnection from the mains and water is now bought from neighbouring residential estates. Likewise, although the area is sewered, individual enterprises on the plot are not connected the sewer. The enterprise shares one toilet in the public ablution block with 7 other enterprises. Storm water from the area drains northwards towards the Nairobi River. The neighbouring enterprises have not done anything about the problems they face. Their differing needs have perhaps caused the lack of action, for example, very few enterprises are affected by the electricity supply problems and would therefore not be interested in discussing the matter. The entrepreneur himself is cynical about the group’s collective ability to address the problems faced by different enterprises.

5.4.2 Socio-economic profile Historical development The foundry was started in 1989 with a capital of Ksh 50,000 and a friendly loan from the entrepreneur’s brother in the form of materials. The entrepreneur is educated to form three of secondary level and has completed a three year vocational training and an apprenticeship as a mechanic with the Railways. He has worked in the Railways and held two jobs in the private sector which exposed him to the business and convinced him that he could run his own business profitably. Initially, the foundry has only a small crucible and a welding machine, and polishing was done off-site. Production grew from a subcontracted order from the Stainless Steel Industry. The entrepreneur subsequently bought a drilling machine and started making potato chippers. He also made his own polishing machine, and in 1991, he obtained his own lathe-machine. In 1993, he bought a mill and another lathe from an auction. The enterprise has recently moved into casting rubber products, especially the rubber automobile bushes. At the beginning, the enterprise had three employees but has grown to eleven regular employees in the foundry and metal engineering section, with five more working in the rubber section since the summer of 1996. Business strategy Products of the foundry are mainly aluminium and brass objects for clients such as hotels, other institutions and shops selling catering equipment and include potato-chippers, gas burners for kitchen stoves, ice-cream spoons and lamp shades. The entrepreneur makes use of contacts from his previous employment. The enterprise also produces commodities for the consumer market like charcoal iron and aluminium bushes for vehicle suspensions, but this is only a small part of the business. Additional business has come form a NGO who approached him to produce a tool for shelling corn. The quality of goods is determined by the market. Customers seem to set the price for products they order. To keep some profit margin, the entrepreneur is forced to work with low cost inputs, although this could affect the quality of products.


83

The entrepreneur would like to receive support in borrowing money to buy a pressure die casting machine and a new lathe. This would increase his production capabilities and lower costs and enable him to introduce other products. The recent addition of rubber processing is a diversification of his products and demonstrates his eagerness for innovation.

Employees The number of employees fluctuates according to the volume of work, but there are 11 regular employees in the foundry and metal engineering section. Seven of the employees are employed on permanent terms, one works on casual basis, another is an apprentice, one is a family member and the remaining employee could not be interviewed. Apprentices do not have any terms or conditions of work. Most of the regular employees are young with an average of 24 years. This reflects the trend for young people to move into towns in search of employment. All the regular employees are men, however, a female apprentice recently started a three month training period. The education level of the employees ranges from primary standard five to secondary fourth form, with most of them having only primary school education. This low level of education is characteristic of this type of small-scale enterprise, which typically attracts primary school leavers who have only a few other employment opportunities. Most of the employees are now multi-skilled. Those undergoing training tend to do only one activity while the experienced ones perform many jobs, including fitting, repair of equipment, cleaning and moulding. On the job training is indirectly paid for by the employer as he does not directly charge the employee for training, although the employees were paid less money while in the training. This arrangement is justified by the employee benefits of improved skills and thus improved employment opportunities for the future. This was witnessed during research when several of the employees left and moved on to other jobs. The period of employment at the foundry varied between three months and six years with an average of 2.4 years. This shows a rather high mobility of employees as they move from one employer to another in search of more lucrative jobs. The monthly incomes range from Ksh 1200-3500 with the average income earned being Ksh 1875. Four of the employees earn Ksh 1200-1300, while six earn Ksh 25003500 per month. This income is very low when compared to other expenses incurred by the employees like house rent which averages at Ksh 645. The number of days worked per week varies from 5½ to 7. Most of the employees start work at seven in the morning and end at the same time in the evening taking very short breaks in the day. Due to the power supply problems in the morning, working hours have extended until late in the evening. Only two employees indicated that they had medical benefits, in fact the medical benefit is usually in the form of credit so that when an employee is sick the employer pays and recovers the money from the employee at the end of the month. Others indicated that they received a bonus around Christmas while some indicated that they are given their bus fare when they go home late.

84


5.4.3 Environmental profile Production process The foundry specialises in both aluminium and brass casting. The raw material is mainly scrap metal, obtained from scrap metal dealers and individual collectors. The quality and quantity of aluminium scrap varies greatly. Aluminium is more abundant than brass. Several informal dealers provide aluminium scrap at about Ksh 45 per kilogram. Brass is pre-melted by the scrap dealer and delivered in relatively pure blocks at about Ksh 55 per kilogram. The quality of scrap metal determines to a large degree the final product quality. It is the entrepreneur’s experience in sorting and mixing scrap which gives his business a decisive advantage over others. A proper balance of scrap quality termed hard and soft by the entrepreneur, is the basis for success, hence the importance of pre-sorting, done at the enterprise. ‘Hard’ and ‘soft’ aluminium is mixed to obtain good melt and flow. Zinc is added to brass scrap to obtain the desired composition and flow. Melting is done in a ceramic crucible inside a fire clay furnace. Kerosene (i.e., paraffin) is used as fuel, and an electric fan enhances oxygen supply. The crucible can hold 60-70 kilograms of aluminium or 150-200 kilograms of brass. According to the entrepreneur, aluminium takes about 1 hour to melt in the furnace and uses about 18 litres of kerosene while brass takes 3 hours and uses 36 litres. All foreign non-volatile materials settle to the bottom of the crucible and are removed as metal slag. The melt is poured into sand moulds using a ladle. The moulds are made of fine sand mixed with sodium silicate. Twenty kilograms of silicate is mixed with two wheelbarrows of sand and a little water is added. The silicate and sand are mixed thoroughly and poured into the wood block containing the pattern for the mould. Carbon dioxide is then passed through the sand-silicate mixture causing it to harden. Moist sand uses more CO2 according to the owner. He uses three different sizes of CO2 cylinders of 18, 21, and 28 kilograms. On average, a cylinder lasts two to three days. After passing CO2 through them the moulds are strong enough and are removed from the boxes and placed on the floor. Holes are made in the moulds to allow the escape of hot air when the melt is poured. Without these breathers, explosions may occur. In other foundries, molasses is used as a binder in the sand mould. However, molasse moulds cannot be removed from their blocks and therefore many blocks are needed for each operation. After breaking the mould, the sand is thrown behind the enterprise to be re-used. The used sand is mixed with virgin sand on a 3:1 ratio which is bought from the glass manufacturing industry. Re-used sand is even better to work with than fresh sand, having good quality due to silicate remnants. A constraint in this procedure is that during rainy weather the wet sand cannot be used. In the lathe and polish department, there are three lathes and polishing machines . Besides this, much work is done manually. All products coming from the foundry are still very rough due to the use of sand moulds. It takes hours to make products smooth and


85

shiny, especially the small commodities like ice-cream spoons, and other cutlery to be used in hotels and restaurants. The new rubber section of the foundry has many similarities with the metal processing part of the enterprise. Five new employees were recently hired, the required machinery was fabricated internally and part of the office space converted into the new production area. Scrap rubber is delivered as granules by several dealers at about Ksh 10 per kilogram. Products of different hardness/smoothness are made, for which the entrepreneur uses a different mix of low and high quality rubber granules. The granules are sieved, mixed with oil and ground in a preheated grinding machine. The softened rubber is then extruded into a mould, cooled in water, and polished. The brass moulds are made in the foundry. The products are sold to car mechanics and spare part shops in and around Nairobi. Only two or three other enterprises do this work in Nairobi. The environmental implications of this recently introduced process are not considered in this research. Waste streams The main environmental problems of the foundry are: • High energy use for melting • Air pollution from smoke, dust, combustion gasses and toxic gasses from the melting process (evaporated scrap contaminants and metals) • Solid waste, such as metal slag from the crucible and sand from the casting process The process flow and the main waste streams of the enterprise are presented in Figure 5.4.


86

scrap metal (aluminium or brass)

kerosene

melting (crucible)

sand sodiumsilic. CO2

casting

abrasives

polishing

CO2, CO, NOx, SO4 dust, smoke toxic gasses metal slags

sand + sodiumsilicate

metal) dust

metalw. fluid

machining (lathe section)

metal chips metalworking fluid

metal product

Figure 5.4: Process steps and the main waste streams of the foundry and metal engineering enterprise In principle, the foundry contributes to an environmentally sound activity through the reuse of scrap metal (about 1000 kilograms per month). But in doing so, much energy is consumed in the foundry, currently about 0.37-0.4 litres of per kilogram of metal. Due to a poorly controlled and monitored melting process, energy use is likely to be rather inefficient. In this regard, the foundry also contributes to air pollution. Thick smoke is released during the melting. Scrap metal contains plastics and paints which may cause toxic gasses during melting. The use of impure scrap metal produces metal slags and other unmelted solids (about 140 kilograms per month) which are dumped at the yard. The waste from the metal engineering section consists of small bits of metal which are cut during production. These are kept in the workshop until they form a sizeable amount which is then recycled through melting, thus minimising metal waste. Another solid waste stream is sand from the


87

production of moulds and the used moulds themselves, produced at a rate of about 3500 kilograms per month. The backyard is littered with spent sand. However, most of it is later recycled, and only a part will be discarded. The type of waste streams and their origin are presented in Table 5.4, listed according to their environmental effect. Table 5.4: Environmental pollution related with the main waste streams of the foundry and metal engineering enterprise Environmental Pollution air pollution solid waste soil pollution ‘other’

Waste Type gasses: CO2, CO, NOx, SO4 dust metal slags sand & silicate metalworking fluid metal chips energy use heat noise

Origin crucible crucible & polish section crucible casting lathe section lathe section crucible crucible lathe section

In-depth analysis of monitoring fuel consumption and waste production To assess the amount of scrap re-used, the metal-fuel ratio and metal waste produced, the inputs and outputs were monitored with a view to develop strategies for positive intervention. The owner kept records of used resources (metal, fuel, sand, etc.) and released wastes. This also provided the owner with insights in efficiency and costs. Over a period of four months, data was collected on scrap and fuel consumption (see annex 3). The enterprise manager refills the fuel tank at the beginning of every melting operation. The amount of kerosene used per cast is an estimated value. The data was available regularly except for a few occasions when there were electric power interruptions or blackouts. The enterprise manager was very co-operative and he took a keen interest in the data collection and compilation. The results are summarised in Table 5.5 below.

88


Table 5.5: In- and outputs of materials used in the melting process of the foundry Error! Bookmar k not defined. Date

Al Scrap (kg)

9-4 / 5-8

2933

“ “

Brass Scrap (kg)

1332

Kerosene (l)

Sand (kg)

Estimate

Sodium Silicate (kg)

CO2 (kg)

Waste (kg/ melt)

1082

504

530

44 14220

1696

567

The results indicate that roughly 1000 kilograms scrap metal is melted per month at the enterprise. Of this, about 140 kilogram of metal waste are released. As the brass input is of higher quality than the aluminium, the amount of waste is much less per melt at around 34% compared to 17% for aluminium waste. About 3500 kilograms of sand, 425 kilograms of sodium silicate and 140 kilograms of CO2 are processed per month. Although the fuel consumption per melt was estimated, the average over a number of melts gives an indication of the metal-fuel ratio. In 54 melts, the average fuel consumed for a kilogram of aluminium scrap was about 0.37 litres. The amount of fuel needed per kilogram of brass is about 0.40 litres per kilogram (average of 9 meltings). Aluminium melts at about 660ºC and brass (of composition Cu:Zn=60:40) melts at about 900ºC. Though there is a substantial difference in melting points, almost the same amount of kerosene is needed to melt one kilogram. This is because the melting of brass is more efficient due to the tight packing of the scrap inside the crucible which is not done for aluminium scrap. Environmental effects The main environmental effect of the foundry is air pollution caused by the melting process. Thick smoke not only fills the enterprise, with possible health impacts for the workers but also affects the local environment and even contributes to the release of greenhouse gasses. Another important source of pollution is the release of solid waste, such as metal slags and sand. Both are dumped at the estate. The enterprise pollutes it own soil surface with small metal chips and metal working fluid. The enterprise contributes to the overall environmental degradation of the commercial plot. Solid waste from the foundry may remain uncollected for long periods. Although most of the processes are dry some residues of metal works such as chips and paints may be washed down the drains and eventually pollute the Nairobi River. Occupational health risks The main occupational health risks are safety hazards from small accidents, and health hazards from smoke and toxic fumes.


89

The employees cited the main dangers of their work as machine accidents, and danger from dust/metal particles which enter eyes, ears and mouth. Electric shocks and suffocation from smoke also occur. The researchers twice witnessed incidents of mild electric shocks. However, few employees were aware of the health risks within their work environment. Precautionary or protective measures were found to be not clearly emphasised. Measures taken by the employer include the provision of overalls, gloves, gum boots, masks, hats and goggles. However, these were said to be not enough for everyone which forces some employees to work without any protection. Due to their desperate need for the job many seem willing to put up without these requirements. In such conditions accidents are bound to happen. It was hard to confirm whether those employees provided with protective devices ever made use of them. For instance, at times employees could be seen not using masks when they should have. But since they knew they were supposed to use them, when asked they said that they always did. On the other hand, some employees did not seem convinced that they needed some of these protective devices. Surprisingly, only three workers had suffered from a work-related injury (two burns and one machine accident). The cost of treatment was met by the employer. All the employees have accident cover but they are not members of the National Hospital Insurance scheme. No reports were obtained of work related illness. One could therefore conclude that there are no visible short-term effects on the employees caused by the working environment. Given the slow effect of the pollutants and the fact that one may not always associate the sickness with work, it is necessary for this to be further investigated.

5.4.4 Environmental improvements Options The entrepreneur is eager to refine the foundry process. Cleaner production options in foundries relate to the melting process (energy use and air pollution) and mould making (waste). A number of options for improvement were discussed with the entrepreneur and these are presented in Table 5.6. These include: • Energy conservation by process optimisation and monitoring • Reduced air pollution by altering input materials (better quality scrap metal) • Re-use of sand and metal waste Table 5.6: Cleaner production options at the foundry and metal engineering enterprise Type of Option

Measure

Input material changes Technology changes

- better quality scrap

Environmental Implication - less air pollution

Response of Entrepreneur - sorting is done

- paraffin fuel - improved design crucible

- less air pollution - less air pollution and energy use

- done - difficult

90


Good housekeeping

On-site recycling

Off-site: useful by-product

- pressure die casting - maintenance crucible: remove remnants - monitoring and regulation: optimum ratio metal-fuel - production planning: melting - process optimisation: casting - reuse sand & silicate - reuse metal slags: washing - reuse metal chips - sand waste for cement manufacturer and construction

- less sand waste - less air pollution and energy use - less energy use

- too expensive - done

- less excess melted metal - less sand waste

- tried - little impact

- less sand waste - less metal waste

- done - not possible

- less metal waste - less sand waste

- done - not possible

- let’s try

Environmental measures to be taken should fit in the narrow boundaries of economic feasibility within which the business operates view of the enterprise' s dependency on only a few clients and on the expertise of the entrepreneur alone. There is little room to change production patterns. However, some possible environmental measures fit with the owners willingness to focus on production of higher quality commodities. Higher quality in foundry products can be obtained by using high-quality aluminium inputs instead of a polluted mix of scrap metal. With this in mind the delivered scrap metal is sorted out by the entrepreneur. The melting of purer material lowers the emission of smoke and heavy metals, and decreases the remaining volume of metal slags. Energy use depends on the design and maintenance of the stove, kind of fuel, and process optimisation (optimum ratio metal-fuel). The entrepreneur is satisfied with the crucible. Any technical changes in this would be difficult and costly. However, a new motor has improved air supply and thus shortened melting time, hence reducing energy use. Paraffin fuel is used, which is preferred to engine oil, which causes thick smoke and annoying fumes. Maintenance of the stove to remove of remnants improves performance. The most promising option for environmental improvement is better process monitoring of the foundry. Proper monitoring and regulation via control of temperature and optimisation of the ratio of metal-fuel, could result in substantial energy savings. Monitoring of the fuel needed per kilogram metal melted is necessary to determine optimum conditions. The entrepreneur has now embarked on a monitoring scheme which provides him with valuable information on resources used and an incentive to come to a more standardised melting procedure based on an optimum metal-fuel ratio. According to the entrepreneur, the crucible can hold 60-70 kilograms of aluminium or 150-200 kilograms brass, and aluminium uses about 18 litres of kerosene while brass uses 36 litres. This implies a metal-fuel ratio of 0.28 litres of fuel per kilogram and 0.21 litres of fuel per kilogram, respectively. However, monitoring revealed that 1.5-2 times more fuel is needed


91

than the entrepreneur guessed, i.e., 0.37 litres of fuel per kilogram aluminium and 0.40 litres of fuel per kilogram brass. In particular, the large irregular pieces of aluminium scrap contribute to heat losses and inefficiency in melting. Chopping the aluminium into smaller pieces can not be done by the scrap dealers since they lack the equipment, and the entrepreneur is not willing to hire an additional worker to do this job as this would consume the savings. He prefers to rely on technology than on labour. Several waste items are being re-used on-site. For example, metal chips are re-used in the foundry, and the used sand is mixed with virgin sand to be re-used for casting. Re-use of the metal slags is not possible as it is an unusable mixture of iron, rubber, etc. Excess melted metal will be re-used in the next melting process. Proper production planning is recommended so that excess melted metal can be avoided. Process optimisation of casting is recommended for example through procedures for optimal preparation of casting sand, although this represents only a minor contribution to waste reduction. Although use of ceramic moulds would improve product quality and reduce sand use but the technology is rather delicate and the on-site re-use of sand and silicate is an environmentally and economically attractive option. Off-site recycling of sand for construction or roads is not possible because it crumbles when exposed to rain. Its mixture with sodium silicate makes it unusable for cement manufacturing.

5.4.5 Networks relevant to the enterprise The networks in which the foundry enterprise operates are shown graphically in Figure 5.5. industrial neighbours scrap metal dealers

competitors clients banks

foundry enterprise

NCC

Classic J.K. Cop.Soc. KOSME

NCCK

societal Figure 5.5: Networks relevant to the foundry and metal engineering enterprise Industrial network

policy

92


From the interview with the foundry entrepreneur, it became very clear that his business contacts are very sustainable and based on long-term agreements. The supply of scrap metal and fuel has been done by the same dealers over the years. He has known his clients since before he started his own business and these contacts are still his most important clients. Only 10% of the production consists of ad-hoc orders by individual clients. He does not undertake any marketing of his products, for clients come directly to his enterprise to buy. The dependency on only a few contractors involves some risk, especially when considering changing production patterns. The addition of rubber processing has decreased this dependency and shows an eagerness for innovation. The entrepreneur was not found to interact with others in the same sector. Although there are a dozen similar foundries in Nairobi. All decisions are made individually. The enterprise does not sub-contract work out to other enterprises. The enterprise is also in competition with three large-scale foundries in Nairobi. According to the entrepreneur, his main disadvantage compared with the large enterprises is a lack of equipment. The owner thinks there are no branch organisations which could serve his interest. Commercial banks are of no use to him , because their loan conditions are unaffordable. The relationship with other enterprises in the Buru Buru commercial estate does not concern business strategy issues but relates to some common interests in the estate. Policy network The foundry is registered with the government, but any permits needed to operate the business are covered by the NCCK, which is the NGO owning the estate. There are no further regulations the enterprise is required to comply with and there is no government control or monitoring. Labour office inspectors have never visited the place. The owner has never had any support from the City Council, nor from governmental institutes aiming at small-scale enterprise development. The main support he would request from any of these institutes is a loan for investment in new equipment, like a lathe and a generator. An important problem in his business is the marketing and any support or training in marketing skills would be very welcome. Societal network The NCCK provides the plot at Buru Buru where the foundry and metal engineering enterprise operates. The NCCK under its urban community programme carries out social service projects. Its ‘small business scheme’ gives management and financial assistance to micro and small-scale enterprises. The NCCK clients include unskilled labourers, school leavers, refugees and people who have retired (Gachugi, 1985). At present, the NCCK has no formal relationship with the entrepreneurs at Buru Buru because the management of the plot has been handed over to a private real estate agency. At one time the NCCK even wanted to sell the area to a private developer. However, this idea has been abolished following pressure from the Classic Jua Kali Co-operation Society, of which the entrepreneur is a member. This co-operative is planning to start a small loan program. The main benefit of this organisation is to intervene in relations with the NCCK. Recently, the enterprise took part in a Jua Kali exhibition organised by the Kenya Organisation of Small


93

and Medium Enterprises (KOSME), which contacted the foundry through the Cooperation Society. For credit, the entrepreneur would have to go to his bank, where he is known. He once tried to obtain credit from an Australian NGO but there were too many conditions to deal with. Most NGO loans are too small to serve his purpose, for these are mostly adjusted to the scale of micro-enterprises. Besides, in arranging a credit, the owner just cannot leave his enterprise for too long.

5.4.6 Conclusions The foundry is a typical informal small-scale industry in the Kenyan context. The owner is an artisan who has built up the enterprise with little means. Business operation is based upon personal contacts with customers, who he knew from his former employment. In fact, the main part of production is intended for these clients, which makes the business rather dependent of them. Another striking feature of this enterprise is its rather isolated operation. Except for a few clients, there are no business contacts, nor is the foundry a member of a business association, branch organisation or other interest groups. Business needs such as training and advisory services, credit facilities and shared marketing strategies are therefor very hard to obtain. Environmental measures to be taken should fit within the narrow boundaries of economic feasibility between which the business operates. There is little room to change production patterns given the enterprise' s dependency on only a few clients and on the expertise of the owner alone. However, some possible environmental measures fir well with owner’s willingness to focus on the production of higher quality commodities. Higher quality in foundry products can be obtained by using better quality aluminium scrap. This may reduce energy use, the emission of smoke and other gasses, and the volume of metal slags produced. A close monitoring process could establish a more efficient metal-fuel ratio. Since the clients impose several product quality conditions upon the enterprise, it would be worthwhile incorporating these clients in strategies to make production towards a more environmentally sound.

5.5 Sheet Metal Fabrication, Kamukunji 5.5.1 Locational profile The third enterprise under study is one of the micro-enterprises of Kamukunji Jua Kali located on a small plot of sloping ground about two kilometres from the city centre in the direction of the eastern part of Nairobi. Kamukunji has the highest proportion of informal metal working activities in Kenya. Its popularity is mainly due to its strategic location with

94


easy access to raw materials in the form of scrap metal from the nearby Industrial Area, and a ready market for finished products from the neighbouring population and travellers who use the nearby Country Bus Station. It has evidently the oldest informal metal working industry in Nairobi. Because of the noise produced by hundreds of hammers beating sheet metal, the area is also well-known as the ‘Clang-Clang Area' . Kamukunji is adjacent to the residential area of Shauri Moyo and in fact, the metal workshops are encroaching into this area. Quite a few inhabitants are working in the metal Jua Kali themselves. Some of them make use of the electricity of the residential houses. Others provide products and services to the metal workers, such as food or charcoal. Several children living in this area also do light work for the artisans. In Kamukunji the majority of micro-enterprises is involved in sheet metal working and tin-smithing. Just over 2000 artisans work in Kamukunji, about 100 of whom are women, and about 100 of them are boys who do light duties. The metal workshops have organised themselves into the Kamukunji Jua Kali Association. The majority of the artisans are poor and uneducated. Acquisition of skills is often through apprenticeship. In addition to sheet metal workers, there are also a few paint workshops and some other metal related ventures. In metal fabrication, oil drums, containers, aluminium sheets, tin plates and milled steel are used. The main sources of these items are industries, scrap metal collectors, and hardware shops. Industries sell directly, or through middlemen, to the informal sector. The input from scrap metal collectors normally goes through scrap metal yards. These yards also deliver scrap iron to steel mills and foundries. Three hardware shops operating in Kamukunji provide nails, wires, metal stripes etc. Metal work operation in Kamukunji is almost exclusively on the micro scale. Technology is divided into two distinct categories. The first one is craft based, for mainly sheet metal operations, and the second is engineering based, involving welding, engineering and fabrication work. Sheet metal workers use very simple tools and equipment as required for marking, cutting, beating, shaping, joining, gripping and finishing. A considerable number of hand-operated tools in use. The manufacturing process is extremely laborious, with long hours and meagre wages. Tools and equipment are mainly manually operated. Less than 10% of the micro-enterprises are connected to the electricity grid. Production processes are slow and products poor in quality. Production tends to focus on products with a guaranteed market such as household metal products, neglecting originality in terms of design and disregarding aesthetics. Poor product quality and lack of diversification can be attributed to many factors, such as a lack of capital, lack of time, old fashioned tools and equipment, poor power supply and lack of training. The demand for their products is slowly decreasing as more residents nowadays prefer to buy higher standard goods from supermarkets and retail shops (Undugu Design Unit, 1995). The enterprise selected for the study has 2 owners, 5 employees, and operates from a tiny spot under a plastic roof in the middle of Kamukunji. It is a very informal enterprise, though relatively large for the area, and with electricity which most other enterprises lack. The enterprise located here because other Jua Kali metal working craft activities were already present and besides the favourable strategic location for resources and markets, another advantage of locating here was the fact that the Jua Kali workers are exempt from


95

paying taxes or levies of any kind. The only disadvantage expressed by the entrepreneur is competition from neighbouring enterprises at Kamukunji. Infrastructure The micro-enterprises are located on City Council land, with no room for expansion. The majority of workshops are crowded together in a small area, connected by narrow pathways. A large metal roof has been built which now protects some of the workers from the sun. Access to water, sanitation, canteen facilities and electricity is poor. Electricity is tapped from the nearby Undugu Society by one entrepreneur and from here, supply has been sub-divided to serve about five other enterprises, including the study enterprise which requires power for lighting and for running electrical equipment. The enterprises share the cost but the power supply is usually not enough to operate all the equipment simultaneously. For heavy welding the entrepreneur is forced to operate during off-peak periods in the early morning and very late afternoon. The enterprises are currently discussing how to deal with this problem. Water and sanitation is the responsibility of the City Council. There is one common toilet and water supply facility, which often runs dry. The entire industrial population is forced to either bring water from home or borrow it from the neighbouring hotels. Fortunately, production procedures of Kamukunji rarely utilise water and it is mainly needed for drinking and washing. But the lack of water means that workers cannot use the latrine, and they have to seek alternatives. The water problem is being tackled by the Kamukunji Jua Kali Association, who have raised the issue with the City Council. It was, however, due to the efforts of individual members that in the autumn of 1996 the water supply was improved at the toilet site. The plot is on sloping ground beneath the busy Landhies Road, affected by dust and petrol fumes from the heavy traffic in the area. The soil type is black cotton soil and the area is poorly drained. The road and pathways are badly maintained and either muddy or dusty depending on the weather.

5.5.2 Socio-economic profile Historical development The entrepreneur of the sheet metal enterprise is educated to secondary form four. He came to Nairobi after unsuccessfully seeking employment in the teaching profession and learnt metal working skills as a means to self-employment. His brother was working around Kamukunji-Shauri Moyo Jua Kali doing petty entrepreneurial work, fabricating house fittings, farm tools and general metal ware by hand. The entrepreneur spent three months learning basic metal working practices from his brother then started working for other entrepreneurs on piece-rate terms. In 1985 he attached himself to his brother' s enterprise and together they expanded the business. In 1986 when Kamukunji Jua Kali was officially opened by the government, he and his brother were given a workshop where they

96


have since worked as joint owners. In 1991 they installed power and expanded their production scope. When the entrepreneur started in 1985 he could make between Ksh 200 and Ksh 500 per week. Today he makes between Ksh 5000 and 10,000 per month. Recently he serviced a Ksh 30,000 loan from K-REP at minimum instalments of Ksh 3000 per month. He used the loan to add some stock, buy some equipment and improve his productivity. He did not have any problems repaying the loan, and plans to apply for a bigger loan in the future to further improve equipment. Business strategy The manufacturing activities in Kamukunji are not homogenous but can largely be grouped into two categories which can be termed ‘upper crust’ and the ‘lower crust’. The ‘upper crust’ consists of small-scale manufacturing workshops with 3 or more employees, some access to power operated equipment (like welding equipment) and a relatively high work volume. The ‘lower crust’ is characterised by one man artisan businesses, occasionally with an assistant who gradually learns the trade and after a while may leave to start his own business. Production is strictly on order, and the client is normally expected to finance the purchase of material to start the job. Both categories, however, employ other artisans on a piece-rate basis, whenever need arises. Most manufacturing activities at Kamukunji are lower crust and purely survival-oriented. The study enterprise can be considered as part of the ‘upper crust’. It combines sheet metal working with fabrication engineering craft operations. It is one of the very few enterprises in Kamukunji with access to power. Its products include bicycle parts, chuff cutters, metal brackets, wall bars, hinges, stove stands, mud scrapers, shoe shine stands, doors and windows and their grills, portable grinders, door bolts and window latches. The entrepreneur originally started with sheet metal working, then advanced to fabrication when he teamed up with his brother. He discusses the daily practices of running the enterprise with his brother, his clients and his friends. The workshop has basic sheet metal working tools and equipment, including an arc welding machine, very old Jua Kali produced shears, an electric forge, punching and bending machines. Some old equipment was recently bought to be converted into a spray painting device. After paying his workers, electricity bills, and for raw materials, the entrepreneur still earns enough to buy better machines to equip his workshop and improve production. His main material is second hand plate steel and scrap metal, easily obtainable from scrap metal yards operating around Kamukunji. He also buys new raw materials from the hardware shop, especially if he has a special order. The employees are specialised in certain jobs although they can double up and do different tasks. There are no work benches and operations are conducted from the shop floor. The majority of works in metal fabrication where there is little competition and reliable demand to sustain the business. The entrepreneur relies mostly on orders, but he also displays ready made items. The main clients are house builders, although the entrepreneur also deals with brokers. He does no marketing, instead gaining orders from existing clients, friends, relatives and acquaintances who give him work or refer people to him. The


97

entrepreneur is worried about the quality of his products and would like very much to improve their quality. The entrepreneur would particularly like to make enough money to enable him buy better equipment in order to improve his technology level. He would like to expand his technical knowledge and be able to make and assemble items like a maize mill. He would also like to attend a course on business management, something he has not done before. He and his brother were planning to erect scaffolding to enable them to create an upper storey for storage, leaving more space for work and display on the shop floor. However, due to decreasing sales this plan was shelved. Employees This enterprise currently has five employees, all men. The number of employees is not stable but fluctuates according to the amount of work. Most of the employees are young and have an average age of 27 years with the youngest being 19 while the oldest is 38 years. Four of these work as regular staff while one works as a casual. Occasionally the wife of the entrepreneur works at the workshop as well. The enterprise has a low turnover of employees, and in the last two years, only two have left. All the employees had worked somewhere before coming to work in this enterprise. In fact some of them have maintained contact with previous employers and work there when there is not enough work at Kamukunji. This clearly indicates the flexibility of those working in micro-enterprises because work is not always guaranteed and they have to make sure there is something to fall back on. The sector is also characterised by high risk, given the fact that the employees get paid for piece work. The payments are, however, higher than regular wages in small-scale enterprises and this balances some of the risk. The education level of the employees is very low as four had only reached primary standard five and only one had completed secondary school. Four of the employees had on-job training while one of them had formal training. Most of those working here had been given the job on the basis of their performance which was tested over-time. Obviously their survival is based on good and timely performance. Although they all had been exposed to Jua Kali metal work before coming to the sheet metal enterprise, the entrepreneur provided further on the job training on cladding and fabrication to familiarise them with the production system of his enterprise. Most employees are multi-skilled, performing several tasks, including metal fabrication, making bicycle repairs, draining pipes, and welding, gutters, door bolts etc. They could do ‘anything’. The owner indicated that all they needed was specification from the client and ‘the rest was up to them’. Flexibility is very important because the work depends on demand. The employees have worked in this enterprise for periods ranging from one to six years. The casual employee has worked in the enterprise for three years. This is a relatively long time to work on a casual basis when compared to other larger enterprises but was said to be common among the micro-enterprises. The staff is referred to as regular staff (as opposed to permanent) because the workers were paid on a daily/weekly basis depending on their wishes. Monthly incomes vary between Ksh 3200 and Ksh 4700 per month. These incomes are much higher than those in the Buru Buru foundry enterprise which is much more established.. In fact the average income in Kamukunji is more than twice that of the

98


foundry. Most of the employees work six to seven days a week. This again is determined by the amount of work to be done. The number of hours worked per day ranges from 7-13 hours with an average of 9 hours a day.

5.5.3 Environmental profile Production process The major production techniques used are sheet metal working, fabrication of plates and sections, and forging of steel bars. These are shown in Figure 5.6. In the first category of production techniques, sheet metal with a thickness not exceeding 16 gauges is used, and the operations involve flattening, cutting, joining, folding, stiffening and forming. In the second category of the manufacturing process, plates are used with a thickness of 14 gauge and 6 inches in the form of pipes, flat bars and shafts. The techniques and processes of fabricating scrap metal are cutting, bending, joining and welding. The third category of production techniques used at Kamukunji is the fabrication of plates and sections by forming and forging of hot metal. Steel bars are heated in a forge, which is heated by charcoal and electric driven air supply, after which the bar is bent and flattened. The related processes in Kamukunji dealing with input materials and some of the metal waste output, are also listed in Figure 5.6. The main material inputs are scrap metal, part of it from used drums, from the scrap metal yards and metal from the hardware shops of Kamukunji. Paint used for product finishing is bought at the paint mixing shops of Kamukunji. Hand tools are the only equipment used in the enterprise. No set working plans are followed. The artisans must be exceptionally good with their hands and must be highly attuned to flexibility.

Practices of Metal Working in Nairobi scrap drums ‘cleaning’ & flattening

chemicals oil smoke sheet metal (plates, bars, etc.)

Preparation marking, cutting

electricity

paint

Formation joining, welding

metal pieces metal chips

welding fumes metal chips

Finishing polishing, painting paint spills half-fabricate or product sold to women group for recycling

mixing paint spills paint

Figure 5.6: Process steps and the main waste streams of sheet metal fabrication Waste streams

99

100


The main problems of the sheet metal enterprise, and in fact of the whole of Kamukunji, are: • Noise and occupational hazards/accidents • Soil pollution by metal particles, oil chemicals and some paint spills Much scrap metal is reprocessed at Kamukunji and with low waste technologies being used some items are produced with minimal generation of waste. The waste which does come from metal working operations is in the form of scrap metal pieces, dirt, slime, smoke, welding fumes, paint, ash, grease and chemical compounds in dust. Larger pieces of metal waste are collected and recycled in foundries, but the smaller scrap metal waste is discarded in workshop corners, thrown or mixed with soil particles and waste water in the sewage system that passes through the Kamukunji area. The concentration of iron in the soil at the enterprise is 24 grams per kilograms dry weight. There is scarcely any possibility of disposing of toxic chemical residues found on scrap metal. There exists, however, relatively little scrap metal waste, it is either used or sold to the women’s group of the Kamukunji Jua Kali Association. The entrepreneur estimates that about 10 kilograms per week of metal pieces is sold to the women’s group. An important waste problem, not directly related to the studied enterprise but occurring in the Kamukunji area, derives from the ‘cleaning’ of metal drums. Certain containers obtained from chemical industries have previously been used to store harmful chemicals such as pesticides, dyes and organic liquids and these containers are cleaned with either saw dust or soap and water, posing a danger to the workers. An earlier study found that Jua Kali workers, who are normally unaware of the dangers of these toxic substances, frequently develop skin ailments and other infections (Baumann et al, 1995). Sometimes chemical remnants leach into the soil. The remains in oil drums are burned, causing serious air pollution. The mixing of paints at some of the workshops in Kamukunji, is done with bare hands, and a lot of spillage occurs, causing soil and water pollution. In-depth analysis of waste from the production of bicycle carriers For a better insight into where waste streams and occupational health risks might occur in this enterprise, it was decided to focus on one particular product manufactured at the workshop. The product chosen was the bicycle carrier, one of the main products of this enterprise. Some 50 bicycle carriers are manufactured per day. This waste audit provides for a qualitative, and where possible quantitative, assessment of the environmental impact of one product line. The production flow process and the related waste streams are presented in Figure 5.7.

Practices of Metal Working in Nairobi metal flats &

101

steel rods sell or recycle

cutting

cutting metal chips metal pieces

folding

electricity charcoal

metal chips metal pieces forging

flattening

smoke charcoal ashes metal splinters

noise metal splinters

punching metal chips

welding electricity

welding fumes welding rods waste painting

black matt paint

paint spillages

bicycle carrier

Figure 5.7: Production of a bicycle carrier and the associated waste streams It was found that little waste occurs in the production of carriers. What waste does occur is metal waste from the punching of holes in the rods and in the metal flat per carrier. The metal chips resulting from this weigh 7.5 grams. Thus, per day 375 grams of metal waste results from the production of 50 carriers. Almost all chips are recovered from the

102


ground and sold with other waste to the women’s group at Ksh 5 per kilogram. On a monthly basis the chips from the carriers earn about Ksh 50. An analysis of the metal concentration in the soil at the enterprise (see annex 4) showed a concentration of 24 grams of iron per kilogram of dry weight soil and 3.5 grams of aluminium per kilogram of dry weight soil. It is not possible to conclude whether this is an indication of soil pollution because the concentrations are within the possible range for iron and aluminium composition of certain soil types. Although the background concentration of the soil at Kamukunji was not analysed, it appears that the soil is not polluted by heavy metals. Only cadmium, lead and zinc concentrations are slightly higher than desired for clean soils. Occupational risks are also present in this production line: noise from flattening; accidents in cutting, flattening and punching; eye and lung irritation and burns from forging; and light radiation and lung irritation from welding. Environmental effects Pollution of the soil by metal particles and paint spills occurs at the sheet metal enterprise, as detailed in Table 5.7. The main problems of the whole of Kamukunji are noise and occupational hazards/accidents. Table 5.7: Environmental pollution related with the main waste streams of the sheet metal fabrication workshop Environmental Pollution Soil pollution

Air pollution

Solid waste

Other

Waste type metal chips & splinters paint charcoal ash smoke fumes: F-compounds, SiO2, NOx, CO, metals metal pieces & chips charcoal ash welding rods noise & vibration energy use

Origin cutting, punching, flattening painting forging forging welding cutting forging welding flattening, folding forging, welding

Residents of the neighbouring Shauri Moyo area are bothered by the noise, but few complain since they are often involved in metal work at Kamukunji themselves. Occupational health risks The conditions under which craftsmen carry out their work represents a direct hazard to safety and health. The working space is crowded with tools, materials, products and people. Craftsmen work on the ground in non-ergonomic positions, with no work tables,


103

and this frequently leads to physical stress. The workers are exposed to high temperatures and bad weather conditions, the work place is exposed to dirt and dust and sanitary facilities are grossly inadequate. Safety hazards lead to possible accidents due to the unsafe conditions of working methods, incorrect working procedures and use of inappropriate tools and equipment. Protective measures such as hand gloves, ear muffs or proper footwear are not used. The materials are handled manually, with bare hands. Serious injuries like cuts, fractures, and bruises occur. Only recently a worker at another workshop at Kamukunji lost his eye. The health hazards encountered are light/radiation (intense light from welding can damage the eye-sight of the welder), dust and welding fumes (affecting the workers' respiratory system and lungs), and noise. There is frequent exposure to extreme noise levels, exceeding 100 Decibels (Baumann et al, 1995). This may eventually lead to deafness of which there are two known cases in workers who spent about 10 years at Kamukunji. Minor complaints related to noise are head-aches and discomfort. The employees cited the dangers of their work as electric shocks, badly assembled tools which sometimes fell on them, machine accidents and burns. To combat various risks identified, a few protective measurers were applied, including wrapping hands with rags when handling hot objects, avoiding the use of welding machines when hands are wet and using goggles. However, three of the employees were found to use no protection. The chance of being injured is very high as shown by the fact that all the employees had suffered from injuries in the course of their duties. The general health awareness is low. For example, people do welding without protective face shields. Two workers indicated suffering from regular ailments. The ailments included headaches, muscle pains and frequent colds. The main problem at the place of work was said to be tiredness, which is hardly surprising given the long days and the manual tasks performed.

5.5.4 Environmental improvements Options Cleaner production options for the sheet metal enterprise relate to the following key points: • Collection of metal waste for recycling • Raising environmental and occupational health awareness • Improving working conditions by introducing working benches, protective gear, etc. The environmental pollution of the sheet metal enterprise under study is rather minimal. However, the overall pollution of Kamukunji area is considerable, especially soil pollution with small metal particles, oil and chemicals from the drums, paint, etc. Directions for environmental improvements should be based on a spatial approach. A clean up, and an organised waste collection system could be set up by the Kamukunji Jua Kali Association. The women’s group of the Association already takes care of metal waste. Management of metal waste at Kamukunji is a responsibility of this Kamukunji Jua Kali Women’s Group. Twenty women collect scrap metal from Kamukunji and the surrounding area, which they buy at about Ksh 3.5 per kilogram. The amount of metal sold to the women’s group is estimated at about 10 kilograms per week. The women sort out the metal waste into tin, brass, plate metal, small scrap and the like. They work with their

104


bare hands, only using gloves in handling parts of oil drums contaminated with chemicals. Scrap metal is sold to dealers for Ksh 5 per kilo of metal, and these dealers sell the metal to foundries at the Industrial Area. The women do not clean the metals, that is done at the collection sites of the dealers. According to a member in charge of dealing in collected scrap metal waste, the metal waste produced by the entire sector in Kamukunji on an average working day amounts to about one ton. This would then resemble an average monthly income of Ksh 2000 per person. To tackle the occupational health hazards, a first requirement is to increase the level of awareness of health risks. The Kamukunji Jua Kali Association and Undugu Society could be important in promoting environmental training and information. Posters and picture boards could be used to raise awareness amongst local workers. The NGO Undugu Society is already active at Kamukunji in providing training in product design and metal processing skills. Improvement of the working conditions could be realised by the use of working benches, and the provision of protective gear such as face shields, gloves and ear muffs. The entrepreneur considers gear like ear muffs and footwear not that important, but he is willing to consider working benches. The use of improved techniques and proper tools will decrease the number of cuts and accidents. It is interesting to note that although welding goggles are available they are not always used. The pollution prevention options are listed in Table 5.8, and although the enterprise could make an important start itself, a combined effort for the whole Kamukunji area seems the appropriate way to build cleaner and safer enterprises at Kamukunji. Table 5.8: Cleaner production options at the sheet metal fabrication workshop Type of option

Measure

Input material changes Technology changes Good housekeeping

scrap metal better and more tools & equipment protective gear working benches better process operating: workplan

On-site recycling Off-site recycling of useful byproducts

reuse metal pieces reuse metal pieces and chips (foundry)

Environmental implications recycling

Response of entrepreneur done

less cuts and accidents less ear problems and less cuts, etc less accidents efficient use of resources, less crowded less metal waste less metal waste and soil pollution

yes, but how to purchase? not that important to be considered

done done (sold to women’s group)


105

5.5.5 Networks relevant to the enterprise The networks of the sheet metal workshop are visualised in Figure 5.8. industrial mini-assoc. Kam. J.K. Fed. competitors

Kam. J.K. Assoc. KNFJKA

clients

KAM

scrap metal dealers

MRTT&T NCC

sheet metal workshop

Min. Agric. policy

Undugu UNIDO K-REP societal Figure 5.8: Networks relevant to the sheet metal fabrication workshop Industrial network It is difficult to analyse the sheet metal workshop without considering its participation in sector and region-based industrial network. For the supply of sheet metal, the attraction of labour, the marketing of its products (as poor as it is), the exchange of skills and information, and even small loans, the entrepreneur deals with his neighbouring entrepreneurs. The entrepreneur interacts a lot with his fellow Jua Kali colleagues at Kamukunji as well as several counterparts in other sectors of Eastlands. His brother is the ‘main person’ in the daily practices in running the enterprises. A few close colleagues are also consulted. All decisions are made by the entrepreneur and his brother. Their main business contacts for selling their products have built up in the Jua Kali as the business has grown. The relationship with other Jua Kali enterprises is cordial but mainly business related, for example borrowing small loans, exchanging certain skills and information, and discussing issues affecting the Jua Kali industry. A friendly brotherhood atmosphere exists, and the Kamukunji Jua Kali Association tends to unite them all. Business is sometimes shared with the other enterprises in sub-contracting arrangements. Tools and equipment are shared, raw materials can be bought on credit and clients are referred by other entrepreneurs if they are capable of better meeting the clients. Competition does exist but is generally played down. As regards operations with other enterprises, the entrepreneur markets alone and sub-contracts on ad-hoc basis. Clients are both

106


wholesalers, who buy similar products from several entrepreneurs in Kamukunji as well as individual clients, such as farmers. The enterprise is a member of the Kamukunji Jua Kali Association. There are some inhouse conditions set by the Association concerning artisans’ turnover, rights of ownership of land and control measures., but they are not effective and are often ignored. Kamukunji is a relatively well organised area, with well functioning Jua Kali association. The Kamukunji Jua Kali Association started in 1986, representing 360 metal workers of Kamukunji, both owners and employees, who register at a fee of Ksh 120. Relations between members is cordial, and they co-operate with each other to the exchange of new ideas and technology. The encouragement of women receives some attention. Their objectives and activities are to improve the welfare of members, create awareness on uplifting their technologies, marketing and financial assistance, security, and to provide some training to school leavers. The association is a member of the Kenya National Federation of Jua Kali Associations (KNFJKA) and works in co-operation with a metal association in Nakuru. The association has very good relations with 6 other associations (e.g., of carpenters, mechanics) at Kamukunji area, and together they form the Kamukunji Jua Kali Federation. The Federation acts as intermediary between the Jua Kali enterprises and the government, for example on general issues like infrastructure. For training activities they link with NGOs, such as UNIDO. Although environmental problems are said to have their attention, this was not evident in this research. The Kamukunji Jua Kali Association does not consider pollution a problem, in fact they consider themselves environmentally friendly by re-using scrap metal. The association is not involved in clean ups. A women group of the Association takes care of the collection and recycling of metal waste occurring at Kamukunji. The association pays for the emptying of the toilets, since NCC does not provide this service. The association supposedly does not allow the use of toxic chemicals, and prohibits the use of drums which still contain chemical remnants. However, this occasionally occurs, and the association claims that they take these people to the police. Asked about safety problems the remark was that there are watch guards. Being more precise, asking about occupational health and safety, the response was that minor accidents occur. There are complaints of skin rashes, caused by metal gasses, and chess paints due to inhalation of paint fumes. The specific problem cited was noise, and they outlined cases where long-time exposure resulted in hearing damage. For this they would like to have ear muffs, and a first aid kit. Unfortunately, in November 1996, it appeared that the Association was overtaken by dispute related to their elections scheduled for early 1997. Politics seem to negatively affect this Jua Kali association, a common feature in Kenya. Undugu had to shelve their training activities until the elections are over. Several entrepreneurs at Kamukunji have initiated their own interest groups for they are not satisfied with the Kamukunji Jua Kali Association. Many small groups have been established to improve infrastructure and services, and to help each other, for example with loans. The sheet metal enterprise has also joined a mini-association and established connections with other ‘upper crust’ enterprises at Kamukunji. They discuss marketing and provide each other with loans, and have managed to get a regular water


107

supply for Kamukunji. Now, they are looking into the possibility of improved power supply. Policy network The enterprise, like all the enterprises in the Jua Kali sector, operates free of taxation. The enterprise is not required to be registered by the government but must register with the Kamukunji Jua Kali Association. The entrepreneur does not need permits to operate, nor is he forced to comply with any regulations to run his business. No support has been received from any of the governing organisations like the NCC, KIRDI or even statutory organisations like the KBS. The entrepreneur has never requested any assistance and is uninformed about what he could ask for and where to apply for it. Some support from the government comes through the Ministry of Agriculture which has always invited enterprise to display their products at the annual shows. The entrepreneur has heard of organisations assisting people in the Jua Kali, but for him, apart from KAM and a UNIDO - Ministry of Research and Technical Training course at Kariobangi, no organisations have come to him. Societal network Of all the NGOs, the sheet metal enterprise has derived most benefit from the Undugu Society' s efforts. The entrepreneur has also received credit from K-REP. However, he is uncertain about how he could improve his business relationship with the government and the NGOs. Undugu is active at Kamukunji providing training on business skills and product design to the metal workers. Undugu was established in 1973 and works on the social and economic development of disadvantaged youths and marginalised communities in the major slums of Nairobi. Undugu has a Business Development Unit aimed at Jua Kali. The Unit provides credit (small loans), business counselling, and training (entrepreneurial skills), directly to youths (self)employed in Jua Kali. The Production Department equips youths with artisan skills to produce quality, diversified products, for example by offering apprenticeship. No environmental conditions are specified in credit provision. The environment is, however, cutting across in all Undugu activities..

5.5.6 Conclusions The sheet metal enterprise in this case-study can by no means be viewed apart from its locational and institutional context in the Kamukunji Jua Kali area. This setting allows the enterprise to share resources, to access common facilities and representative organisations and to use and re-use materials from other neighbouring enterprises. Surrounded by many micro-enterprises, this enterprise is, with 5 employees, just one of the few small-scale industries within the area. The arrangement of contract labour, the use of basic technologies, low product quality and poor working conditions, make the enterprise a typical informal organisation.

108


Environmental problems mainly occur on a very local level, thus damaging the working environment and causing occupational diseases. Awareness of risks among workers and employers is very low. Due to the very informal character of these enterprises, it is unlikely that formal regulations on environmental or occupational health measures will provide the incentive for change. Obviously, it would be wise to make use of existing NGOs and representative organisations to raise environmental awareness provide training and encourage the development of environmentally sound management procedures.

6 Discussion: Comparative Enterprise Analysis and Strategies to Support Pollution Control 6.1 Introduction In this chapter, the case study data is analysed in more general and comparative terms. Similarities and differences between the enterprises are discussed. The environmental impacts, cleaner production options and institutional environment will be evaluated with the aim of recommending supportive strategies to control pollution produced by small-scale industry. Ways to overcome constraints on the implementation of cleaner production measures in the studied enterprises are discussed. And finally, the hypotheses derived from the theoretical framework will be evaluated in the context of the study findings.

6.2 Enterprise Characteristics 6.2.1 Locational characteristics Although located in very different areas, the three enterprises share the problems of the unreliable provision of power and water which cause considerable production losses. The foundry and sheet metal enterprise have problems in extending their sheds, simply because they have no space. Most crowded is the sheet metal workplace in Kamukunji. The areas where the three entrepreneurs operate are assigned or at least zoned as ' industrial areas' . Although residential areas are not far away, the main local nuisance problems of noise, smoke and smell mostly affect the workers in the industrial area rather than inhabitants of surrounding quarters. However, inhabitants of Shauri Moyo are affected by noise and land/water pollution from Kamukunji. In all three cases, in principle there are common interests shared with other entrepreneurs in the same area. This creates possibilities for the entrepreneurs to work together, for example on the improvement of infrastructure.

6.2.2 Socio-economic characteristics The socio-economic characteristics of the three enterprises are summarised in Table 6.1.

114


Although the entrepreneurs have very different backgrounds, especially in terms of education, their entrepreneurship shares some common elements. Each started their career as employees in other enterprises, where they obtained the skills necessary for metal working. All established their own enterprise after obtaining ' friendly loans'or utilising their own savings. Relying on clients known from their former employment, the enterprises were built up slowly to their current size. The main technology input can be characterised as basic machinery. The equipment used is mainly second-hand and has been adapted to the level and type of production. All kinds of employment arrangements common in the small-scale sector can be found in the three enterprises. There are apprenticeship arrangements, regular, casual and permanent workers as well as workers paid on piece rate. Some subcontracting arrangements occur, where workers or other enterprises are hired for part of the production of a one-off order. The electroplating enterprise has the most formal organisational structure with regular and permanent staff. Casual employment is most common in the informal organisation of the sheet metal enterprise in Kamukunji. At the foundry enterprise, the number of employees fluctuates to some extent according to workload, with turnover in staff also related to the low salaries paid. The wages earned, as indicated by the employees, differ greatly, although the accuracy of this information is questionable. Surprisingly, the highest wages are earned in the most informal enterprise, albeit on the basis of piece rates and with poor labour conditions and little job security. Within the metal sector, and especially within the different sub-sectors, there is rigorous competition among the entrepreneurs. Business strategies do not differ considerably among the three selected enterprises: they can be characterised as highly flexible, although there is some specialisation in typical production processes or products. The electroplating enterprise can take all kinds of plating orders, but is specialised in nickel plating. Similarly, the foundry can make all kinds of metal products, but the enterprise is specialised in a small number of hotel and kitchen utensils and spare parts for cars, with some recent diversification into items for the construction industry. The sheet metal enterprise seems most flexible, but there is still some specialisation in the form of fabrication work and little diversification in items produced. Profit margins are low in all three enterprises, and production costs such as technological inputs and labour have to be minimised. All three enterprises work with orders and do not market their products directly. Their few main clients are regular ones of several years standing. These regular orders form a kind of subsistence base for the enterprises. Table 6.1: Socio-economic characteristics of the enterprises Socio-econ. data established start capital (Ksh.) # employees (1996) avg. age employees employment status

Electroplating 1987 300.000 14 34 70% regular

Foundry 1989 50.000 11 24 70% regular

Sheet metal 1985 20 5 27 80% regular

Comparative analysis and Strategies salary (Ksh./month)

2500-5000

1200-3500

115 3200-4700

6.3 The Environmental Profile 6.3.1 Environmental Impacts of Small-scale Metal Enterprises The waste streams of the different enterprises are summarised in Table 6.2. There are similarities in the types of waste streams, as all enterprises are involved in metal engineering causing soil pollution and solid waste, and two have a foundry causing air pollution and further solid wastes. Only the electroplating enterprise causes water pollution, consisting of highly toxic chemicals and metals and having a serious negative impact on the environment. The occupational hazards encountered in the three enterprises are more or less similar. All face safety hazards due to inappropriate machinery and tools. The foundries cause respiratory problems due to smoke. The employees at the electroplating are exposed to highly toxic chemicals. Particularly demanding for the sheet metal workers are the non-ergonomic working conditions and high levels of noise. The findings of the case studies can be compared with general expectations regarding small-scale industries and environmental problems, as presented in section 3.3.1. What can be said is that most environmental problems, as well as their common causes, related to small-scale production in developing countries were found to occur within the cases studied from the small-scale metal industry in Kenya. Due to the small sample size in the study, one has to be careful in generalising the findings. However, from the in-depth case studies, the following general conclusions on the small-scale metal industry and environmental pollution can be drawn: • The small-scale metal industries contribute to a wide range of environmental pollution problems in Nairobi. The environmental problems can be classified as those related to emissions to the environmental compartments of water, air and soil, overuse of natural resources, and health risks. On the other hand, small-scale metal industries contribute to the recycling of a valuable waste stream, i.e., scrap metal. • The most serious pollution problem caused by small-scale metal industries in Nairobi is the release of toxic waste water. This is caused by electroplating activities, and although only few electroplating enterprises operate in Nairobi and their total waste water volume is relatively modest, the nature of the waste water is such that the environment is seriously polluted. The contribution to organic water pollution and air pollution is relatively small. The air pollution caused by small foundries is likely to be relatively low compared with that produced by the three large-scale foundries in Nairobi. The combined soil pollution caused by over 2000 sheet metal enterprises at Kamukunji has resulted in substantial local pollution. • The small-scale metal industries have a negative health impact on their labourers more so than on the local inhabitants. This is due to their location in industrial zones. However, the foundry in Buru Buru and especially the sheet metal enterprise

116


in Kamukunji cause some nuisance of smoke and noise for the nearby residential areas. • Small-scale metal industries cause pollution through their inefficient production processes, inferior equipment, and poor housekeeping. The enterprises are not able to adopt treatment technologies due to a lack of finance, space, experience and qualified operators. This last conclusion on the causes of pollution is in line with the findings of Bartone and Benavides (1993) as presented in section 3.3.1. These authors claimed that smallscale industries pollute more per unit of output than large-scale industries. In the present study this could not be tested since no comparison between large and smallscale industries in Nairobi was made. However, one may say that the small size and the informal character of enterprises partly explains the poor operating conditions, poor technological and financial conditions, attitudinal problems, and poor infrastructure that cause pollution. But several of the causes are related to the institutional environment in which the enterprises operate. It is not only the lack of environmental policy but the wider lack of an enabling environment to support small-scale industries in the improvement of production that is a major cause of poor environmental performance by the small-scale metal enterprises. Although this applies also to the larger industries, they often have a greater capacity to improve production in an environmentally sound way without outside support.

Table 6.2: The main waste types and occupational health hazards at the enterprises Error! Bookmark not defined.Environmental pollution Water pollution

Soil pollution

Electroplating acid: H2SO4 abrasives, wax alkaline detergent oil & grease heavy metals: Cu, Zn, Ni, Cr toxic: cyanide heavy metals: Cu, Zn, Ni, Cr oil

Foundry

Sheet metal

oil

Comparative analysis and Strategies

Air pollution

Solid waste

Other env. effects

Safety hazards

Health hazards

metal chips metalwork fluid paint

metal chips metalwork fluid

fumes: cyanide, acid, chromium

toxic fume: metal, scrap contaminant

organic solvents dust & smoke gasses: CO2, CO, NOx, SO4 heavy metals: Cu, Zn, Ni, Cr package material metal slag sand metal pieces vibration & noise explosion/fire risk: solvents energy use heat machine accidents cuts burns electric shock lung: fumes, smoke, dust skin: allergy, irritation

dust & smoke gasses: CO2, CO, NOx, SO4

117 metal chips paint charcoal ash fumes: SiO2, metals

smoke gasses: CO2, CO, NOx welding rods

metal slag sand & silicate

noise energy use heat machine accidents cuts burns electric shock lung: fumes, smoke, dust

metal pieces, chips charcoal ash noise & vibration energy use machine accidents cuts burns electric shock lung: fumes, smoke, dust ear: noise eye: light/radiation

Table 6.3: Comparison of the main cleaner production options for the enterprises Error! Bookmark not defined.Cleaner production Input material changes

Electroplating

Foundry

Replace chromium VI by chromate III Cyanide free plating

Paraffin fuel

Sheet metal

118


Technology changes

Good housekeeping (operating condition)

Cleaner objects & alkaline instead of organic degreaser Reduction of drag-out: - hanging techn. Improved rinsing: - cascade Improved barrel/bath Different degreasing: - electrolytic Better operation: - maintenance & monitoring - improvement of skills Better process operating conditions Longer life time baths Drag-out reduction

On-site reuse

Better rinsing Worker protection: - clothes, devices Reuse static rinse Reuse filter waste

Off-site recycling of useful by-product

Material recovery - metals, bath liquid & dissolvent Material recovery - concentrated and isolated waste flow

Better quality scrap

Better quality scrap metal Better and more tools & equipment

Improved design crucible Pressure die casting Production planning: reduce excess melting

Better process operating: - work plan

Process optimisation: - casting Monitoring and regulation: optimum ratio metal-fuel Maintenance crucible: remove remnants

Keep the work site clean and organised

Protective gear & work benches Reuse sand & silicate Reuse metal slag Reuse metal chips Sand waste for cement manufacture and construction

Reuse metal pieces

Reuse metal pieces and chips (foundry)


119

6.3.2 Cleaner production options There are several technological and management options to make industrial production more environmentally sound. Waste recovery, segregation of waste streams, the establishment of treatment facilities, good housekeeping and clean technologies are some of the possible options. Given the technology conditions at small enterprises of simple techniques, as appropriate to their scale of production, environmental technologies should fit with the same conditions. At the three enterprises the search for options for pollution control focused on the concept of cleaner production, i.e., pollution prevention, as from an economic point of view this is the most favourable option. The main cleaner production options identified at the enterprises are summarised in Table 6.3. A large number of these can be introduced at minimal cost, as they relate to good housekeeping and re-use activities. Options related to managing the enterprise, record-keeping, training, in-house monitoring, safety and emergency schedules are relevant to all three enterprises. The monitoring of material and energy streams is currently very poor and the production processes are executed purely on the basis of experience. The entrepreneurs could save considerably on energy and raw materials if these streams were better monitored.

6.3.3 Constraints on the implementation of cleaner production A number of waste minimisation opportunities have been identified, many of which could be introduced at minimal cost and with little effort. But apparently it is not that easy to implement the measures in the enterprises. Despite the fact that cleaner production presents the opportunity for a win-win solution, where environmental improvement is set in the context of economic development, its implementation remains difficult and will not happen overnight. A whole range of barriers to the successful implementation of environmentally sound methods of production were identified in the study. Most of these barriers were also found in the PRISMA (Dieleman et al, 1991) and DESIRE (Chandak, 1994) projects on cleaner production in the Netherlands and India (see section 3.4.1). Four types of barriers, at both the enterprise level and at the institutional level, can be distinguished: • Attitudinal: First of all, cleaner production seems not to be on the agenda of the small-scale entrepreneurs and is not given due attention by the Kenyan government, for example through environmental regulations supporting pollution prevention. Attitudinal constraints relate to the underrating of environmental problems, resistance to change, the view that ‘environment costs money’, and an emphasis on end-of-pipe technological measures. Except for the entrepreneur of the electroplating enterprise, the awareness among both employees and employers of environmental and occupational health problems was generally low. Lack of knowledge and awareness may hamper the introduction of some of the more

120


‘obvious’ improvements. Training on these issues could assist more environmentally sound management and operation of the enterprises. • Organisational (managerial): The small-scale enterprises are currently not equipped to implement cleaner production programmes, as exemplified by ad-hoc production procedures and the lack of involvement of employees in decision-making on process changes, nor are they given the required external support. In Kenya, institutional arrangements to prevent pollution are lacking both for enforcing environmental regulations and providing support to prevent pollution through for example branch associations. The Kamukunji Jua Kali Association could initiate health and safety programmes in the sheet metal enterprise, but currently they are not able to do so without external support. • Technical: The development of cleaner production technology in Kenya is limited, in particular of technology suitable for the small-scale sector. The information and technology that is available is difficult to access by small-scale industry. At the foundry and sheet metal enterprise the necessary technological changes will be a matter of minor adaptations, but technological adaptations are more relevant for the electroplating enterprise, which is the only enterprise not constrained by a lack of space for technical devices. Here, the entrepreneur is capable of improving technology based on experience, but he is hampered by lack of information and finance. • Economic: The introduction of new technologies or processes will be limited by economic constraints and investments in more environmentally sound technology will only be made if short pay-back times exist. However, even if such technology investments can be shown to improve efficiency in production it remains doubtful whether the necessary capital will be made available. In all three enterprises, economic constraints are a primary reason for neglecting options for environmental improvement. Despite the potential saving in costs, cleaner production is restrained by financial obstacles, such as low prices for raw materials, low waste disposal charges, lack of funding and an incomplete calculation and allocation of environmental costs to the various production units leading to an underestimated potential for financial benefit. For example, the low cost of water is the reason for the electroplating enterprise not to invest in a water saving programme. A possible future waste water bill would be the incentive to prevent and treat waste streams, but it might well be that the enterprise moves into a different business instead of putting in the required environmental investments. Several barriers at enterprise level are linked with the Kenyan institutional environment in which small-scale industries operate (see Table 6.4). In short, one can conclude a general lack of incentives from government, NGOs or other organisations to drive a change in production to be more environmentally sound. Table 6.4: Constraints on the implementation of cleaner production measures identified in Kenya Barriers Attitudinal

Enterprise (internal) - lack of good housekeeping

Institutional (external) - limited public awareness


Organisational

culture - lack of awareness or indifference to environment - adversity to risk taking - non-involvement of employees - turn-over of technical staff - poor record keeping, reporting and accounting - production planning on a day-to-day basis - no co-operation with other enterprises, suppliers and clients

Technical

- out-dated equipment - lack of in-house maintenance facilities - space limitations

Economic

- lack of funds - ad-hoc investments - incomplete calculation and allocation of environmental costs to various units

121

- policy emphasis on end-of-pipe approach - inadequate environmental policy (not integrated and over-reliance on command-and-control approach) and lack of enforcement - non-availability of information on environmental management systems - no role for branch associations - lack of qualified personnel in Kenya - limited access to technical information - limited R&D facility for SSI - limited development, dissemination, demonstration of clean technology - emphasis on end-of-pipe technology - lack of adequate credit facilities - high interest rates - low prices of resources and low pollution charges

The constraints identified should be turned into incentives in order to successfully introduce cleaner production. Important cleaner production drivers at enterprises (van Berkel, 1996-a) are leadership and management commitment, employee involvement and initiatives, cost awareness, occupational health and safety programmes, and research and development. Cost awareness could be an important driver in all three enterprises, although this would have to be accompanied by environmental awareness and information. Strong leadership and some process adaptations based on their own experimentation exist in the electroplating and foundry enterprise and this provides opportunities to introduce cleaner production programmes. However, employee involvement is lacking in all three enterprises and this is not likely to change. Not only these company internal factors are important, but they should also be backed by external drivers that motivate industry to undertake cleaner production via environmental regulations, market pressure, public pressure, and new technological opportunities. Thus, to overcome the barriers to implementing environmentally sound measures at the enterprise level, and to support individual entrepreneurs in optimising production processes, the focus should be turned towards the institutional context of

122


the small-scale industry sector. The next section deals with this issue of support from actors outside the enterprises.

6.4 The Institutional Environment 6.4.1 Industrial network For all three enterprises, the main actors within the industrial network proved to be clients and suppliers. These form the first links at both supply and demand sides of the production chain and are the first to be dealt with if production has to be altered. Since the market determines what quality of product is acceptable and at what price, clients are the first to deal with if product quality is at stake. In the case of the foundry, for example, better quality products demand that the enterprise uses higher quality scrap metal, resulting in energy savings and thereby in reduced air pollution and less waste. In turn, higher quality scrap metal has to be obtained from scrap metal suppliers. The example shows that cleaner production cannot just be executed by the entrepreneur alone. In one way or another, the chain from supplier to customer is affected too. Interactions with neighbouring enterprises provide opportunities for co-operation in tackling environmental issues. This can be done by the exchange of information, joint consideration of options for common treatment and disposal of waste, and negotiations with environmental agencies in local government. For example, the disposal of company waste from the foundry enterprise could be collectively dealt with together with the other enterprises at Buru Buru, and possibly be organised by the Classic Jua Kali Co-operation Society. Among the three case studies, the networks differ in the relations with other metal working entrepreneurs. Except for the sheet metal enterprise, there is no representation in branch organisations. Although all three enterprises operate within the small-scale metal sector, it is striking that they do not share a common representative organisation. Branch organisations could form a bridge between individual firms and policy organisations. Moreover, a branch organisation would ideally cater for a point of entry to introduce environmental improvement, for example by promoting environmental information and providing training.

6.4.2 Policy network Interaction with government agencies is mainly associated with formal arrangements, such as registration procedures, licenses and tax duties. For all three enterprises, one could say that participating in policy networks is far out of reach. Contacts with government representatives are avoided rather than aspired to and influencing policy concerning the interests of small-scale industries is, at least for individual entrepreneurs, out of the question. Obviously, the most formal operating enterprise has to deal the most with industrial and related policy measures. This is not to say that there are no actors within the policy networks involved in matters concerning small-scale industry or the urban environment. The Kenyan


123

Government perceives support to this sector as very important. The policy addresses resource constraints by providing credit, training and infrastructure. Its implementation, however, as the network studies show, seems to be rather ineffective and is lagging behind requirements. One of the explanations for this is that policy aimed at supporting small-scale industry is formulated at the national level, while its implementation is mainly the responsibility of officials at the local level. There is still a large gap to bridge between the ambitions stated in national policy documents and the practice of officials at local level. The study shows that because of the lack of a comprehensive environmental policy and enforcement of environmental legislation, the enterprises are neither forced to cooperate nor are they receiving incentives to control pollution. Governmental agencies concerning the environment and industry in Nairobi do not have the capacity to steer these kind of industries towards environmentally sound production.

6.4.3 Societal network Support for small-scale industry does not only have to come from government, it could also be provided by organisations in the societal network. The availability of and access for small-scale entrepreneurs to training facilities, credit programmes, and research and development facilities could well be developed by NGOs and trade and industry organisations. In Kenya there is a large number of NGOs with small-scale and microentrepreneurs as their main target group. From donor organisations to grassroots organisations there is clear involvement with small-scale enterprise development in both rural and urban areas. Programmes range from direct support in providing credit or building sheds for Jua Kali entrepreneurs, to creating enabling policy environments to stimulate small enterprise development. The sheet metal workshop particularly has benefited from NGO support. However, the somewhat larger enterprises such as the foundry and electroplating enterprise have few links with NGOs. Environmental issues related to small enterprise development are so far rather under represented. NGOs could play an important role in raising environmental awareness. For example, the Undugu Society already interacts with the Jua Kali workers of Kamukunji, among others providing training in business skills and product design. It would be a small step to incorporate environmental criteria in their activities to promote the need for more efficient and thus cleaner production. In raising health awareness, there is scope for co-operation between Undugu and the Kamukunji Jua Kali Association.

6.5 Directions for Pollution Control by Small-scale Industry in Kenya Both government and other organisations can play a role in promoting cleaner production in industry. Governments should provide legislation, technical assistance, economic incentives, training and environmental awareness programmes, and should

124


move towards voluntary arrangements with industry (Baas et al, 1992). Trade associations can provide codes of conduct and information, banks can provide funds, labour unions can mobilise workers’ commitment, research institutes can develop technology and provide training, and environmental organisations and consumers can provide pressure and demands for cleaner products (Boons and Huisingh, 1992). As has been argued earlier, Kenya is in need of a comprehensive environmental policy consisting of rules and regulations, levies and subsidies, with proper enforcement through specialised government organisations. The government should play a role in raising environmental awareness and in supporting industry in environmental innovation. Industries should not only comply to environmental standards, but also invest in cleaner production measures that prevent pollution. In Kenya, there is as yet no mutual co-operation between government and industry aimed at industrial pollution abatement, and no particular focus on small-scale enterprises. The environmental and other relevant characteristics of the three small-scale metal working enterprises in Nairobi have been assessed, with the aim not only to propose directions for pollution control for these three enterprises, but also for the small-scale manufacturing sector as a whole. The research revealed that solutions to environmental problems cannot be expected to come from individual enterprises on their own. In order to support cleaner production measures, capacity building of institutions (such as regulatory agencies, industry associations, technical service and research institutions, environmental NGOs), to undertake a supporting role will be required. According to Van Berkel (1996-a: 261), capacity building is required for the development of: • Training capacity: the ability to deliver training on cleaner production tailored to the needs of different target groups; • Technological capacity: the ability to assist cleaner technology development and implementation; • Institutional capacity: the ability to establish co-operation among stakeholders involved in the dissemination of cleaner production in industry; and • Governmental capacity: the ability to implement environmental and industrial policy to foster cleaner production. These capacities are particularly relevant for supporting environmental improvement in small-scale industry in Kenya. The study of the institutional context of the enterprises provided the tools to formulate strategies for environmentally sound restructuring of the small-scale metal sector. The following sections presents the main elements of such supportive strategies.

6.5.1 Raising awareness and providing training The case studies showed that on the average the awareness of risks, occupational health and pollution among the entrepreneurs and their workers is low. Monitoring of production processes on resource use and waste streams generated new insights even for experienced entrepreneurs, indicating potential to change the current situation. Not only the entrepreneurs, but also policy makers and other actors involved in small-scale


125

industry development are unaware of the environmental and occupational health risks of small-scale manufacturing. This explains the lack of concern about environmental issues in the sector and neglect of its contribution to pollution. There is therefore a need to raise awareness and provide training, both at the enterprise level and policy level. Raising awareness at the enterprise level should focus on opportunities to save on resources and energy, and on the relationship between environmental conditions and the health of employees. This will motivate the owners to provide protective gear and the employees to use and insist on having them. However, there is still a long way to go as income and job security are the main concerns of the employees, in particular of those working at the sheet metal enterprise. Attitudinal obstacles can be overcome by conveying the benefits of cleaner production through success stories from similar enterprises. This is particularly the case for the electroplating enterprise where positive experiences in other countries, notably India, motivated the entrepreneur to try some of the cleaner production options. Managerial constraints at the enterprises can be overcome by dividing environmental tasks and responsibilities among both staff and management, however, this is not likely to happen in the three enterprises as they very much depend on the leadership of the manager. At the policy level, environmental awareness is particularly important since it should lead to the formulation of standards which could be enforced. Policy makers could also provide various incentives for those willing to protect the environment. Training in more environmentally sound manufacturing could be taught at all levels, including polytechnics and engineering institutions. Prospective trainees need direct exposure to real case studies and demonstrations. Some of the trainees end up working in the small-scale sector so raising environmental awareness at this early stage could motivate them to later address environmental concerns in their operations. Existing training programmes in the small-scale sector, including those provided by NGOs, could be adjusted to meet the need for more environmentally sound production. The Kenya Management Assistance Programme, K-MAP, provides business counselling and training for small-scale entrepreneurs and there is scope in their training programs, such as quality management, to cover environmental issues. However, K-MAP is not associated with any environmental experts. Training of labourers should be directed towards the specific practices at the enterprise, as is already done in the training programmes on product design conducted by the Undugu Society at Kamukunji. In the literature, the establishment of an information centre in order to collect and disseminate information of interest to small entrepreneurs is recommended (Bartone and Benavides, 1993). In the case of Nairobi, the Kenya Rural Enterprise Programme is already an important information centre for small enterprise development. K-REP could become an important information centre for environmental issues of relevance to the small-scale sector. Co-operation with the Kenya Industry Research and Development Institute is advisable in this context.

126


6.5.2 Providing financial and technical incentives The study showed that the enterprises are in need of financial support as well as appropriate technology to improve their production. In particular, the electroplating enterprise could be supported with technological modifications and the supporting finances. Equipment, information, and credit would be required. The set of possible financial incentives includes levies and subsidies to steer production in an environmentally sound way, taxes on raw materials and energy, and reduced import duties on cleaner technologies. The low cost of water was found to be a barrier to implementing a water saving programme in the electroplating enterprise. To promote cleaner production measures which are cost intensive, the government and donor agencies should develop schemes for financial assistance that are procedurally simple and within easy access by small-scale industry. The possibility and the desirability of putting an ' environmental condition'in credit provision programmes for the small-scale sector, should be considered. Also worthwhile testing is the provision of individual or group-based credit to address environmental concerns. This could be done by the Kenya Rural Enterprise Programme, K-REP, on a trial basis to see how the entrepreneurs respond. The foundry is in need of a friendly loan to buy new equipment and K-REP could provide credit on the condition that the investment improves production efficiency and simultaneously reduce waste, for example by having less sand waste from an improved casting method. Technical incentives include the provision of research and development facilities for the small-scale sector, and emphasis on environmental technology development at research institutes and universities. Co-operation between the existing technical training institutes is needed. The Kenyan government should strengthen institutions such as the Kenya Industrial Research and Development Institute, KIRDI, which could provide the requisite support for developing and implementing cleaner production programmes in small-scale industry. KIRDI could very well assist the electroplating enterprise in technological improvements. In short, clean technology development, demonstrations and the dissemination of information is required in Kenya. While some information on cleaner production exist, access to it and the userfriendliness of the information itself needs to be improved, particularly for small-scale enterprises. Dissemination of cleaner production knowledge needs to be optimised. The above-mentioned information centres are insufficiently consulted by small-scale industry. None of the three entrepreneurs has ever visited, for example, the K-REP data bank. In the United States, a network of institutions has been established at state level to provide information on pollution prevention to small and medium-sized enterprises. These ‘Technical Assistance Programs’ provide free brochures and offer site visits, and have proven to be accessible to the entrepreneurs and effective at providing enterprise specific information, which are both decisive components for effective knowledge diffusion (Baas et al, 1992). Knowledge transfer and technical assistance within a company for assessing waste flows and prevention options could be achieved by pollution prevention teams. The central policy recommendation of the Dutch PRISMA-project is that a network of prevention teams be established by the government to assist industry in implementing cleaner production measures (de Hoo


127

and Dieleman, 1992). Although technology development and diffusion need to be taken up in Kenya, it’s obvious that this will only prove successful if the previous recommendation of awareness raising and the following two recommendations are simultaneously acted upon.

6.5.3 Organising small-scale enterprises into policy-making bodies The case studies indicated that there is hardly any interaction between entrepreneurs and government, and to some extent NGO representatives. The foundry enterprise, for example, does not interact with any of the government organisations dealing with small-scale industry. This constitutes a problem since the views and needs of smallscale industries should form the basis of policy-making and conversely, policy guidelines must be implemented at the level of small-scale industry. More focused interaction between government and the small-scale sector is required, for which representation of organised small-scale entrepreneurs is advocated. Although the Ministry of Research, Technical Training and Technology has encouraged the formation of Jua Kali associations, these face a lot of problems. For the somewhat larger enterprises between the informal and formal sector, such as the electroplating enterprise, the lack of representation in any of the decision making bodies is an even more noticeable gap. Organising the small-scale industry is also recommended because there are possibilities for co-operation in pollution abatement and waste minimisation. However, in this study no indications were found to promote enterprise co-operation to the level of implementing common treatment systems. The highly toxic and sector specific waste water of the electroplating enterprise cannot be treated together with waste water from other industries in Industrial Area and it already negatively interferes with the municipal treatment system as it is released to the sewer. Although in principle the common treatment of waste water from all electroplating activities would provide for economies-of-scale, in practice this would require the relocation of the three electroplating enterprises to a site with common facilities (which would still leave out the small electroplating units in other, large enterprises). This is not advisable considering the limitations of such an approach as mentioned in section 3.4.2, in particular because it advocates an end-of-pipe approach where sufficient options for pollution prevention exist in the electroplating enterprises. However, it might well be that common treatment of effluents from other industrial sectors is a promising approach, such as for the small-scale tanneries located in close physical proximity in Industrial Area. Co-operation among entrepreneurs could fill the gap between the policy level and enterprise level and should lead to possibilities for joint strategies on waste minimisation, pollution control and occupational health improvements. Further, organised enterprises are easier to access for training and to target financial and technical support. Environmental change could also occur from greater collaboration between enterprises and their suppliers or clients, for example through changes in input materials or product specifications. This is relevant for product quality improvement by the foundry and for example, environmental improvement from trivalent chromium

128


plating at the electroplating enterprise. However, as environmental awareness and policy has not yet taken a foothold in the community in Kenya, too much should not be initially expected from client-supplier induced environmental transformations. According to Zwetsloot and Geyer (1996), co-operation is an essential factor for successful cleaner production programmes. Co-operation between industries and authorities contributes to gaining trust, and co-operation among companies in the same line of business is essential for exchanging information. Dissemination of successful practices in pollution control from other countries based on a collaborative effort should convince Kenyan industrialists and government officials of this promising approach.

6.5.4 Co-ordinating environmental policy incentives and small-scale industry support programmes The network analysis showed that quite a few gaps exist in industrial and environmental policy that should be tackled. In Kenya, there is not so much a lack of policy on the role and function of the small-scale sector, rather there is a lack of proper implementation of policy, and as small-scale sector policy is divided between several Ministries some policy measures are conflicting. If there are any programmes implemented, these are rather ad-hoc and short term, like the building of a few sheds. Government institutions mainly operate independently of each other, a situation that makes it very difficult to support environmental improvement. NGOs fill some gaps, especially in credit programmes, but they cannot be expected to complete the needed policy implementation. Besides, their efforts are also not co-ordinated. Industrial policy should be based on environmentally sound development, and comprehensive environmental policy should be developed to steer industrial development in a sustainable direction. As stated in the introduction of this report, the mere enforcement of strict environmental standards could prove to be counterproductive as it will force some small-scale industries to close down. However, the three enterprises studied in Nairobi do not face any environmental control from government and in the case of the electroplating enterprise this is an important reason why the entrepreneur has not to adopted waste treatment systems. Enforcement of environmental regulations would drive pollution control at this enterprise, although the entrepreneur would consider closing the electroplating section if too high a level of investment was required. But enforcement of regulations should not be used in isolation of other environmental policy activities. Policies which could be implemented by local and state government agencies include urban planning policies which take into account the environmental impacts of location planning, regulatory regimes using economic instruments, and public awareness campaigns. The emphasis on end-of-pipe measures should be reduced and environmental policy need to be modified to incorporate the benefits of cleaner production. The formulation of long-term environmental objectives, using progressive standardisation, would encourage their implementation by industry. In Kenya, environmental policy is in the hands of different government agencies, most notably NES and NEAP, which complicates relations with small-scale industry.


129

There is, therefore, a need to bring together existing programmes and policy guidelines on support of small-scale industry, environmental pollution abatement and occupational health, and to assess the overlaps, conflicts and gaps in policy. The objective must be to resolve problems as far as possible by co-ordinating the incentives and programmes. A support group, consisting of relevant actors in the fields of policy making and implementation may be valuable in monitoring this process.

6.6 Conclusions and Recommendations 6.6.1 Conclusions Referring to the hypotheses that were derived from the theoretical framework in chapter 3, the following three main conclusions on small-scale industry and pollution control can be drawn: • Small-scale industries contribute to a wide range of environmental pollution problems in Kenya. Particularly serious is the pollution from toxic substances which causes environmental deterioration and occupational health problems. Pollution is caused by inefficient production and an inability to adopt treatment methods. • Small-scale industry in Kenya makes little effort to control the pollution and improve health and safety. Cleaner production provides opportunities for efficiency improvement and thus the economically feasible minimisation of waste. Several options for cleaner production exist which can be adopted with relatively little effort and at little costs. However, small-scale industries face constraints in implementing cleaner production. Attitudinal, organisational, technical and economic barriers can be distinguished at both the enterprise and institutional level. • Incentives and support to change production to be more environmentally sound should be provided by organisations in the institutional environment in which small-scale industries operate. Currently in Kenya, there is a lack of incentives from government, NGOs or other organisations for small-scale industry to control pollution.

6.6.2 Recommendations To assist small-scale industry in pollution control, enabling measures and a combined effort by industries, government organisations and NGOs are required. The following set of measures is recommended: • Raising awareness and providing training to entrepreneurs, employees and government officials. NGOs, training institutions and the media can provide training and raise environmental awareness at all levels. • Providing financial and technical incentives for cleaner production. Government agencies such as the Ministry of Research Technical Training & Technology, the Kenya Industrial Research Development Institute, and Nairobi City Council, and

130


NGOs such as the Kenya Rural Enterprise Programme and universities should provide for infrastructure, technology development and credit. • Organising small-scale enterprises and their representation in policy-making bodies. The involvement of the small-scale industries, i.e., Jua Kali associations or branch organisations, is a crucial requirement for a successful supportive strategy aimed at cleaner production. • Co-ordinating environmental policy incentives and small-scale industry support programmes. The Kenyan government should support the development of smallscale industry while enforcing comprehensive environmental policy through environmental authorities. Capacity building is required for the institutions that deal with small enterprises and/or the environment, and their efforts need to be strengthened and co-ordinated to avoid conflict and duplication of effort.

6.6.3 The way forward Given the growing importance of small-scale industry in the Kenyan economy, mechanisms need to be put in place to ensure that the issue of environmental pollution by small-scale industry is given the attention it deserves. There is a need for a partnership approach to manage environmental impacts related to industrial development. This must include all the different actors having links with industry and the environment. Government actors must be made aware of the full range of issues facing small-scale industry. The role of small-scale industries themselves is vital in working towards solutions for pollution problems. It is suggested that a group consisting of representatives of key organisations pushes forward the recommendations on supporting pollution control and ultimately designs a common implementation strategy for environmental management in smallscale industry. The growing concern expressed by several key actors in government, industry and NGOs on the importance of assisting small-scale industry to control pollution provides a starting point for this.

7 Epilogue 7.1 Evaluation of the Research Methodology 7.1.1 Rationale for the study Analysing urban environmental issues in Kenya has not been a major focus for contemporary research. Thus far, the emphasis of most environmental research in Kenya has been mainly on issues of deforestation, the management of water resources, soil erosion and nature conservation. The urban environment and industrial pollution have only recently gained attention. This has come via projects such as the Green Towns Project which was set up to introduce environmental considerations into urban development, via a KENGO project on industrial pollution in Thika, and a project on localising Agenda 21 and industrial pollution in Nakuru (UNCHS, 1996). Urban environmental problems are evident throughout Nairobi and the other main towns in Kenya. Waste problems are attracting some attention now, at least in the media. However, industrial pollution and especially pollution by the small-scale sectors has not been an issue thus far. It attracts very little public attention and, as this study shows, national and local policy deals with economic and industrial growth without paying full respect to the consequences of growth for the urban environment. Within the existing policy context, a study on environmental pollution by smallscale industries in Nairobi may seem out of place and indeed, it was found that the issue is not given priority by either government ministries, non-governmental organisations or by entrepreneurs themselves. Nevertheless, it was considered by most parties relevant to assess the possible environmental problems which arise within the small-scale industrial sector and to find out which solutions are appropriate. This meant that the research had to start from the very beginning with data gathering from scratch as there was no data base on the subject. The research had to gather data together from enterprise level up to policy level in order to provide conclusive facts on environmental pollution by small-scale industries in Nairobi. What was very useful for this study was the relatively large amount of information available on the development of small enterprises in Kenya. Since the ILO report on the informal sector (ILO, 1972), numerous studies have been done in this field (Ondiege and Aleke-Dondo, 1991; Parker and Torres, 1994; King, 1996; McCormick and Pedersen, 1996; etc.) and several policy documents specifically geared towards micro and small enterprise development have been published (Kenya Government, 1989 and 1992). The issue of small-scale industry and the environment has also been neglected in other developing countries. Only a few studies exist in this field (Hamza, 1991; Kent, 1991; Bartone and Benavides, 1993; Chandak, 1994; and a current research of the Intermediate Technology Development Group and UNIDO in Bangladesh and

134


Zimbabwe). This research project therefore contributes to the international debate on urban environmental management, one of the core themes of the Habitat II conference at Istanbul in 1996. The preliminary findings of this project were discussed in a Habitat II preparatory seminar on capacity building for the urban environment (see Edelman and Mengers, 1997).

7.1.2 Case studies The lack of information on pollution caused by small-scale industry in Kenya lead to the use of a qualitative case study approach to achieve the research objectives. The aim was not to obtain a full overview of the small-scale sector and its environmental impacts on the city and its population, as this would be far too ambitious for a project of this size. The aim was rather specific to gain insight into the critical constraints on the implementation of environmental measures, to access existing and alternative strategies for pollution abatement at enterprise level and policy level, and to investigate strategies for building commitment for environmental management. So instead of a large representative sample of enterprises in Nairobi, only a small sample of three enterprises within one sector of industry was selected. This enabled the researchers to spend enough time at each enterprise to reveal the true situation and to discuss issues in-depth with the entrepreneur. Only in this way could process schemes be drawn up, waste streams analysed and possible prevention measures assessed. As the project lasted for almost two years, the dynamics of small business could also be covered within the research. The case studies provided a starting point for further research on the social networks encompassing the study enterprises and other small industrial enterprises in Nairobi. This ‘bottom-up’ approach clearly revealed gaps between documented policy and its actual implementation. The most obvious disadvantage of the case study approach was the matter of generalisation to the sector as a whole. One has to be careful in generalising the findings of this study, in particular in drawing conclusions about the relationship between the magnitude of the pollution problem and the size of the enterprise or its level of (in)formality. Nevertheless, some generalisations can be usefully made from the findings of the study. The findings on cleaner production measures as well as the constraints in implementing them at the enterprises under study may well be true for other enterprises. The network studies started at the level of interactions between the enterprises and specific actors within one of the networks, but ultimately provide an overall picture of the networks which are relevant to small-scale industry development and the environment in Kenya.

7.1.3 Network studies The use of network research in studies on industrial pollution abatement was derived from experiences with earlier research in industrialised countries (see, for example, Mol, 1995, who did such a study on the chemical industry in the Netherlands). Not surprisingly, the institutional environments relevant for implementing environmental

Epilogue

135

policy differ very much between the Netherlands and Kenya. The societal network for one is totally different in magnitude in Kenya. Where NGOs in Kenya often fill the gaps in conventional governmental policy, in the Netherlands NGOs have either an opposing role or work closely together with government organisation in environmental policy-making. Environmental awareness in the Netherlands has resulted in an increased, but still rather low, demand for environmentally sound products, inducing some cleaner production in industry. Also industrial and policy networks differ considerably in the kinds of actors involved, their influence on policy and linkages amongst each other. For example, in the Netherlands industry and government cooperate on pollution control efforts, a situation which does not yet exist in Kenya. Although their results differ considerably compared with the Dutch situation, the network studies proved to be a very relevant research methodology for the Kenyan situation. Although this study has only touched on the relevant networks and interactions, the study succeeded in revealing the main actors involved in small-scale industry development and the environment, an understanding of which is crucial for the formulation of supportive strategies. The further development and implementation of supportive strategies must now be taken up by the key actors identified in the network studies.

7.2. Recommendations for Further Research In this study only a small sample drawn from one sector of small-scale industry in Nairobi was studied. The findings are to some extent applicable to other industries, but additional research of the same kind would be worthwhile. This research could focus on other sectors of industry, another city in Kenya, or other countries in East Africa or internationally. From an environmental perspective a very relevant sector of small-scale industry in Kenya is the leather tannery sector, which is highly polluting and a source of significant occupational health hazards. It is a sector which is typical of small or medium-scale production and could well be compared to other international findings. Another sector relevant for the same reasons is the textile dyeing and printing sector. Similarly, the oil pollution caused by numerous car repair work shops, and the waste from the hundreds of small-scale carpenters in Gikomba, Nairobi, are also in need for proper support and measures to control pollution. A study on small-scale industry in other Kenyan cities would reveal the relevance of local policies to pollution abatement strategies for small-scale industry. The same goes for studying small-scale industries in neighbouring countries (Ethiopia, Tanzania, Uganda), which more or less resemble the Kenyan economic context. In view of the relatively modest industrialisation in African countries, the substantial pollution impact that accompanies the rapid industrial transformation of the newly industrialising countries in Southeast Asia and the giant economies of China and India justifies further research there. A research proposal on pollution control by smallscale textile dyeing enterprises has been prepared for Ahmedabad, India, and a

136


research and education project on environmental reform of industry in HoChiMinh City, Vietnam (Mol and Frijns, 1997) has recently been started. A totally different context for industrial development can be found in the Eastern European Countries, where small-scale industries could also play a crucial role in development. It would be very relevant to do such a study, especially at this time of economic growth and when European standards in environmental policy have to be applied in these countries. Lastly, support for small-scale industry in industrialised countries such as the Netherlands also deserves more attention in view of the increasingly stricter environmental regulations being applied in such industrialised countries.

References

Aleke-Dondo, C. (1995), Current Informal Sector and Small-scale Enterprises (I/SSEs) Development Models and Assistance Programs in Kenya. In: P.O. Ondiege, Informal Sector Development Models and Assistance Programmes in Kenya. Nairobi: University of Nairobi. Aleke-Dondo, C. (1997), Evolution and Experience of Credit Programmes for Smallscale Enterprises. In: J. Frijns and J.M. Malombe (eds) Cleaner Production and Small Enterprise Development in Kenya. Nairobi: CUE/HABRI, pp 61-66. Allenby, B.R. and D.J. Richards (eds) (1994), The Greening of Industrial Ecosystems. Washington: National Academy. Anderson, D. (1982), Small Industry in Developing Countries. World Bank Staff Working Papers No. 518. Washington: World Bank. Atambo H.G. (1989), Jua Kali Industries - A Project Study for Occupational Health Nursing. Manchester. Ayres, R.U. and U.E. Simonis (eds) (1994), Industrial Metabolism. Restructuring for Sustainable Development. Tokyo: United Nations University. Baas, L.W., M. van der Belt, D. Huisingh and F. Neumann (1992), Cleaner Production: What Some Governments are Doing and What All Governments Can Do to Promote Sustainability, European Water Pollution Control 2, No 1, pp 10-25. Bartone, C.R. and L. Benavides (1993), Local Management of Hazardous Wastes from Small-Scale and Cottage Industries. Honolulu: Pacific Basin Conference on Hazardous Waste. Bartone, C. R., J. Bernstein, J. Leitmann and J. Eigen (1994), Towards Environmental Strategies for Cities. Policy Considerations for Urban Environmental Management in Developing Countries. UMP 18. Washington: World Bank. Batti, K. (1997), Government Support Programmes for Small-scale Industries. In: J. Frijns and J.M. Malombe (eds) Cleaner Production and Small Enterprise Development in Kenya. Nairobi: CUE/HABRI, pp 7-13. Baumann, E.A., F. Muchiro and O. Ooko (1995), Report on a Mission to Kenya, on behalf of the FIT Program (draft). Nairobi: ILO/TOOL. Berkel, C.W.M. van (1996-a), Cleaner Production in Practice. Methodology Development for Environmental Improvement of Industrial Production and Evaluation of Practical Experiences. Amsterdam: University of Amsterdam. Berkel, R. van (1996-b), Fostering Cleaner Production in Developing Countries: Experiences from India and China. In: F. Duijnhouwer and M. Veldhuis (eds), Agenda 21. RAWOO/RMNO Lectures on Sustainable Development. The Hague: RAWOO/RMNO.

138

Pollution Control of Small-scale Metal Enterprises in Nairobi

Berkel, R. van, J. Kryger and R.S. Luken (1994), Preliminary Experiences with Cleaner Production in China and India, UNEP Industry and Environment, Oct.-Dec., pp 4650. Bhalla, A.S. (1992), Innovations and Small Producers in Developing Countries. In: A.S. Bhalla (ed), Small and Medium Enterprises: Technology Policies and Options. London: IT Publications, pp 83-100. Biggs, T. and P. Srivastava (1996), Structural Aspects of Manufacturing in Sub-Saharan Africa. Findings from a Seven Country Enterprise Survey. Discussion paper No. 346. Washington: World Bank. Boons, F. and D. Huisingh (1992), Cleaner Production: The Roles of Non-governmental Organizations and Individuals in Stimulating its Implementation within Corporations, European Water Pollution Control 2, No 6, pp 40-48. Bhuvendralingam, S. (1996), Industrial Estates Siting Study. In: J. Pickford et al, Reaching the Unreached: Challenges for the 21st Century. Proceedings 22nd WEDC Conference. New Delhi: WEDC, pp 260-263. Canisguin, J. (1995), Common Treatment Facility for the Electroplating Industries of Metro Cebu, Earthbound 1, No 1, pp 6-8. Chakraborty, S. (1995), Green Justice: Up in Smoke?, Down to Earth 4, No 9, pp 19-23. Chandak, S.P. (1994), “DESIRE”, Demonstration in Small Industries for Reducing Waste, UNEP Industry and Environment, Oct.-Dec., pp 41-45. Coughlin, P. (1991), Industrial Development, Technological Change and Institutional Organziation: The Kenyan Case. In: P. Anyang'Nyong' o and P. Coughlin (eds), Industrialization at Bay, African Experiences. Nairobi: Academy Science Publishers. Coughlin, P and G.K. Ikiara (eds) (1991), Kenya' s Industrialisation Dilemma. Nairobi: Heinemann. Dahab, M.F., D.L. Montag and J.M. Parr (1994), Pollution Prevention and Waste Minimization at a Galvanizing and Electroplating Facility, Water, Science and Technology 30, No 5, pp 243-250. Daniels, L., Mead, D.C. and M. Musinga (1995), Employment and Income in Micro and Small Enterprises in Kenya, Results of a 1995 Survey. GEMINI technical report No. 92. Nairobi: USAID. Development Alternatives (1995), An Approach to Pollution Prevention in Electroplating Sector. New Delhi: Development Alternatives. Dieleman, H., R. van Berkel, F. Reijenga. S. de Hoo, H. Brezet, J. Cramer and J. Schot (1991), Prisma: Choosing for Prevention is Winning. The Hague: Ministry of Economic Affairs. Dijk, M.P. van (1993), Industrial Districts and Urban Economic Development, Third World Planning Review 15, No 2, pp 175-186. Dijk, M.P. van and R. Rabellotti (eds) (1997), Enterprise Clusters and Networks in Developing Countries. London: Frank Cass. Duchhart, I. Unpublished Draft of PhD Thesis. Edelman, D.J. and H. Mengers (eds) (1997), Capacity Building for the Urban Environment. Rotterdam: IHS.

References

139

EPA (1987), Meeting Hazardous Waste Requirements for Metal Finishers. Cincinnati: U.S. Environmental Protection Agency. EPA (1992), Facility Pollution Prevention Guide. Cincinnati: U.S. Environmental Protection Agency. Fafchamps, M. (1994), Industrial Structure and Micro-enterprises in Africa. Journal of Developing Areas 29, Oct., pp 1-30. Fischer, K. and J. Schot (eds) (1993), Environmental Strategies for Industry. International Perspectives on Research Needs and Policy Implications. Washington: Island Press. Frijns J. and J.M. Malombe (eds) (1997), Cleaner Production and Small Enterprise Development in Kenya. Nairobi: CUE/HABRI. Frijns, J., J.M. Malombe, P. Kirai and B. van Vliet (1997), Environmental Pollution and the Small-scale Metal Sector in Nairobi. In: J. Frijns and J.M. Malombe (eds), Cleaner Production and Small Enterprise Development in Kenya. Nairobi: CUE/HABRI, pp 25-60. Gachugi, A.K.W. (1985), Area Opportunity Studies for the National Council of Churches of Kenya: Small Business Scheme. Nairobi: NCCK. Grabher, G. (1993), Rediscovering the Social in the Economics of Interfirm Relations. In: G. Grabher (ed), The Embedded Firm. On the Socioeconomics of Industrial Networks. London: Routledge, pp 1-31. Groot, K.E. de and E.H. Heuvelman (1990), Informatiebundel Galvanische Bedrijven. ‘s-Gravenhage: Min. Volkshuisvesting, Ruimtelijke Ordening en Milieubeheer. Hahn, B., A. Geisslhofer and J. Ernst (1996), Socioeconomic Factors in the Implementation of Integrated Environmental Protection Measures in Small and Medium-sized Enterprises. Heidelberg: Greening of Industry Network Conference. Hamza, A. (1987), Environmental Management of Small and Medium Scale Industries in Western Asia. UNEP Industry and Environment, April-June, pp 6-10. Hamza, A. (1991), Impacts of Industrial and Small-scale Manufacturing Wastes on Urban Environment in Developing Countries. Nairobi: UNCHS/UMP. Hardoy, J.E., D. Mitlin and D. Satterthwaite (1992), Environmental Problems in Third World Cities. London: Earthscan. Hirji, R. and L. Ortolano (1991), Controlling Industrial Pollution Using EIA: Case Study of a Kenyan Tannery Project, The Environmentalist 11, No 4, pp 255-266. Hoo, S. de and H. Dieleman (1992), Choosing Prevention is Winning: The Organization and Results of the Dutch Pollution Prevention Project PRISMA, UNEP Industry and Environment 15, No 1-2, pp 52-62. Hoo, S. de, H. Brezet, M. Crul and H. Dieleman (1991), Manual for the Prevention of Waste and Emissions. The Hague: Min. Economic Affairs. House, W.J. (1984), Nairobi' s Informal Sector: Dynamic Entrepreneurs or Surplus Labor?, Economic Development and Cultural Change 32, No 2, pp 277-302. House, W.J., G.K. Ikiara and D. McCormick (1993), Urban Self-Employment in Kenya: Panacea or Viable Strategy?, World Development 21, No 7, pp 1205-1223. Huisingh, D. and V. Bailey (eds) (1982), Making Pollution Prevention Pay: Ecology with Economy as Policy. New York: Pergamon Press.

140


ILO (1972), Employment, Incomes and Equality: a Strategy for Increasing Productive Employment in Kenya. Geneva: ILO. Ikiara, G.K. (1991), State Intervention in Small Enterprises: The case of Kenya Industrial Estates. In: P. Anyang'Nyong' o and P. Coughlin (eds) Industrialization at Bay, African Experiences. Nairobi: Academy Science Publishers. Juma, C. and R. Munro (1989), Country Strategy for Strengthening Enviornmental Considerations in Danish Development Assistance to Kenya. Copenhagen: Ministry of Foreign Affairs. Kabecha, W.W. and T.H. Thomas (1995), The Quality of Informal Sector Manufacturers in Nairobi, Small Enterprise Development 6, No 4, pp 43-49. Kengo and Ministry of Health (1991), Environment 2000. Nairobi. Kent, L. (1991), The Relationship between Small Enterprises and Environmental Degradation in the Developing World (With Emphasis on Asia). Bethesda: DAI. Kenya Government (1982), Schedule of the Role and Functions of the NES. Nairobi: Government Printer. Kenya Government (1986), Economic Management for Renewed Growth. Sessional Paper No. 1. Nairobi: Government Printer. Kenya Government (1989a), A Strategy for Small Enterprise Development in Kenya, Towards the Year 2000 (part 1). Nairobi: Kenya Govt./ILO/GOK/UNDP. Kenya Government (1989b), Small Enterprise Development in Kenya, Programme of Action (part 2). Nairobi: Kenya Govt./ILO/GOK/UNDP. Kenya Government (1989c), Small Enterprise Development in Kenya, Project Ideas (part 3). Nairobi: Kenya Govt./ILO/GOK/UNDP. Kenya Government (1992), Small Enterprise and Jua Kali Development in Kenya. Sessional Paper No. 2. Nairobi: Government Printer. Kenya Government (1994), National Development Plan 1994-1996. Nairobi: Government Printer. Kenya Government (1996), Industrial Transformation to the Year 2020, Sessional Paper No. 2. Nairobi: Government Printer. King, K. (1996), Jua Kali Kenya Change and Development in an Informal Economy 1970-1995. Nairobi: EAEP. London: James Currey. Kinyanjui, D.N. and P.R. Baker (1980), Report on the Institutional Framework for Environmental Management and Resource Use in Kenya. Nairobi: NES. Koppert, P.C. and H.D. Hofman (1991), Prevention of Waste and Emissions at Chromolux, in: R. van Berkel, M. Crul, S. de Hoo and P. Koppert, Business Examples with Waste Prevention: Ten Case Studies from the Dutch PRISMA-project. Den Haag: Ministry Economic Affairs, pp 131-151. Labrador, R. (1993), Process Optimization and Waste Minimization in the Electroplating Industry, Industrial Pollution Control - Cebu Bulletin 1, No 5-6, pp 1-3. Lin, C.M. (1994), Cleaner Production in Small and Medium-sized Industries, UNEP Industry and Environment, Oct.-Dec., pp 68-70. Livingstone, I. (1991), A Reassessment of Kenya' s Rural and Urban Informal Sector. World Development 19, No 6, pp 651-670.

References

141

Lyberaki, A. and I. Smyth (1990), Small is Small: The Role and Functions of Small Scale Industries. In: M.P. van Dijk and H. Secher Marcussen (ed), Industrialization in the Third World. The Need for Alternative Strategies. London: Cass, pp 125-145. Macharia, K. (1992), Slum Clearance and the Informal Economy in Nairobi, Journal of Modern African Studies 30, No 2, pp 221-236. Malombe, J.M. (1992), The Role of the Informal Sector in Allevation of Urban Poverty. In: J.M. Malombe (ed), Urban Management in Kenya. Nairobi: Proceedings ARNUM Workshop. Marete, J.K. (1987), Environmental degradation in Nairobi: a case study of Dandora site and service scheme. Nairobi: University of Nairobi. McCormick, D. and P.O. Pedersen (eds) (1996), Small Enterprises, Flexibility and Networking in an African Context. Nairobi: Longhorn. Mead, D.C. (1994), The Contribution of Small Enterprises to Employment Growth in Southern and Eastern Africa. World Development 22, No 12, pp 1881-1894. Meagher, K. (1995), Crisis, Informalization and the Urban Informal Sector in Sub-Saharan Africa. Development and Change 26, No 2, pp 259-284. Migiro, C.L.C. (1996), Cleaner Production Regional Perspectives: Africa Region, UNEP Industry and Environment 19, No 3, pp 48-51. Mikkelsen, B. (1987), Formation of an Industrial Labour Force in Kenya; Experiences of Labour Training in the Metal Manufacturing Industries. IDS Occasional Paper No. 49. Nairobi: Institute for Development Studies. Ministry of Environment and Natural Resources (1994), The Kenya National Environmental Action Plan (NEAP) Summary. Nairobi: Kenya Government. Ministry of Industry, (1981), Report on the First National Symposium on Industrial Research and Development. Nairobi: Kenya Government. Modak, P., C. Visvanathan and M. Parasnis (1995), Cleaner Production Audit, Environmental Systems Reviews, No 38. Mol, A.P.J. (1995), The Refinement of Production, Ecological Modernisation Theory and the Chemical Industry. Utrecht: Van Arkel. Mol, A.P.J. and J. Frijns (1997), Ecological Restructering in Industrial Vietnam: The HoChiMinh City Region. Euroviet III (paper). Amsterdam: IIAS/CASA. Mutiso, S.K. (1994), Kenya' s National Environmental Action Plan, Waterlines 13, No 2, pp 11-13. Mwaura, Z.N. (1986), Kenya' s Industrialization Strategy. Nyeri: Conference on Kenya' s Industrialization Strategy. Nemerow, N.L. (1995), Zero Pollution Industry. Waste Minimization through Industrial Complexes. New York: Wiley. Nyati, K.P. (1995), Cleaner Industrial Production in Developing Countries. In: OECD, Promoting Cleaner Production in Developing Countries. Paris: OECD, pp 24-29. O’Conner, D. (1994), Managing the Environment with Rapid Industrialisation: Lessons from the East Asian Experience. Paris: OECD. Odegi-Awuondo, C. (1994), The Economics of Garbage Collection: Survival Strategies of Nairobi’s Urban Poor. In: C. Odegi-Awuondo et al (eds), Masters of Survival, pp 45-62. Nairobi: Basic Books.

142


Odipo, A.A.M.M. (1995), A Critical Analysis of the Problem of the Management of Hazardous Wastes in Developing Countries, with Special Emphasis on Kenya. In: Environmental Management in Developing Countries, Waste Management, vol 2, pp 45-79. Tübingen: ISC. Okazaki, M. (1987), Pollution Abatement and Control Technologies for Small and Medium Scale Metal Finishing Industry, UNEP Industry and Environment. AprilJune, pp 23-28. O’Laoire, D. and R. Welford (1996), The EMS in the SME. In: R. Welford (ed), Corporate Environmental Management; Systems and Strategies. London: Earthscan, pp 201-211. Ombura, C.O. (1996), Towards an Environmental Planning Approach in an Urban Industrial Siting and Operations in Kenya: the Case of Eldoret Town. PhD Thesis Amsterdam: UvA. Ondiege, P.O. and C. Aleke-Dondo (1991), Informal Sector Assitance Policies in Kenya. Nairobi: University of Nairobi. Ondiege, P.O. (1996), Capital and Performance of Small Enterprises in Kenya. In: D. McCormick and P.O. Pedersen (eds), Small Enterprises; Flexibility and Networking in an African Context. Nairobi: Longhorn, pp 161-174. Otieno, F.A.O. (1991), Pollution: What is the Position in Kenya. Paper, presented at the Environment 2000 conference. Otieno, F.A.O. (1992), Solid waste Management in the City of Nairobi: What are the Prospects for the Future? African Urban Quarterly 7, No 1 & 2, pp 142-149 Parker, J.C. and T.R. Torres (1994), Micro and Small-scale Enterprise in Kenya: Results of the 1993 National Baseline Survey. GEMINI Technical Report 75. Nairobi: GEMINI. Pedersen, P.O., A. Sverrisson and M.P. van Dijk (eds) (1994), Flexible Specialization, the Dynamics of Small-scale Industries in the South. London: IT Publications. Percival, D. (1996), Country Report Kenya, Beating Poverty with Growth, Courier, MayJune 1996. Phantumvanit, D. and S. Sathirathai (1986), Promoting Clean Technologies in Developing Countries, UNEP Industry and Environment, Oct.-Dec., pp 12-14. PRC Environmental Management (1989), Hazardous Waste Reduction in the Metal Finishing Industry. Pollution Technology Review No. 176. New Jersey: Noyes Data Corporation. Robbins, N. and A. Trisoglio (1995), Restructuring Industry for Sustainable Development. In: J. Kirkby, Ph. O’Keefe and L. Timberlake (eds), The Earthscan Reader in Sustainable Development. London: Earthscan, pp 161-173. Sakurai, K. (ed) (1995), Cleaner Production for Green Productivity; Asian Perspectives. Tokyo: Asian Production Organization. Sethuraman, S.V. (1992), Urbanisation, Employment and the Environment. In: A.S. Bhalla (ed), Environment, Employment and Development. Geneva: ILO, pp 121-139. Shah, W. and A. Awori, (1996), The Management of Land and Land Based Resources in Kenya: Proposals for a NationalPpolicy and Legal Framework. Nairobi: KENGO.

References

143

Silva, R. da, I. Basilia and M. Chodak (1993), Pollution Prevention in Metal Finishing Industry; PRISMA study for VD KOVOCAS, Czechia. Amsterdam: UvA. Sittig, M. (1978), Electroplating and Related Metal Finishing. Pollutant and Toxic Materials Control. Pollution Technology Review No. 46. New Jersey: Noyes Data Corporation. Situma, F.D.P. (1992), The Environmental Problems in the City of Nairobi, Kenya, African Urban Quarterly 7, No 1 & 2, pp 167-175. Spaargaren G. and A.P.J. Mol (1992), Sociology, Environment, and Modernity: Ecological Modernization as a Theory of Social Change, Society and Natural Resources 5, pp 323-344. Stewart, F., H. Thomas and T. de Wilde (eds) (1990), The Other Policy: The Influence of Policies on Technology Choice and Small Enterprise Development. London/ Washington: IT/ATI. Suzhen, Y. (1995), Strategies for Controlling Industrial Wastewater Pollution in Beijing. In: I. Serageldin, M.A. Cohen and K.C. Sivaramakrishnan, The Human Face of the Urban Environment. Environmentally Sustainable Development Proceeding Series No 6. Washington: World Bank. Tanburn, J. (1995), Steel Supply and Product Marketing for MSE Metal-Workers in Kenya. FIT Working Document. Geneva: ILO/TOOL. Tanburn, J. (1996), Towards Success: Impact and Sustainability in the FIT Programme, Small Enterprise Development 7, No 1, pp 42-51. Teerlink, H. and E. Frank (1993), The Brown Environment, Employment and Local Agenda 21, Third World Planning Review 15, No 2, pp 195-208. Teszler, R. (1993), Small-scale Industry' s Contribution to Economic Development. In: I.S.A. Baud and G.A. De Bruijne (eds), Gender, Small-scale Industry and Development Policy. London: IT, pp 16-34. Undugu Design Unit (1995), Scrap Metal Recycling, a Product Development Oriented Study of the Informal Metalworking Sector; Case Study of Kamukunji Jua Kali. Nairobi: Undugu Society. UNCHS (1996), Localising Agenda 21: Action Planning for Sustainable Urban Development: Nakuru Kenya, Project information leaflet. Nairobi. UNEP/IEO (1989), Environmental Aspects of the Metal Finishing Industry; A Technical Guide. Technical Report Series No 1. Paris: UNEP/IEO. UNEP/IEO (1991), Audit and Reduction Manual for Industrial Emissions and Wastes. Technical Report No 7. Paris: UNEP/IEO. Uribe-Echevarría, F. (1991), Small-scale Industrial Development, a Policy Statement. In: H. Thomas, F. Uribe-Echevarría and H. Romijn (eds), Small-scale Production, Strategies for Industrial Restructuring. London: IT, pp 9-33. Vidmar, K.P. (1995), Pollution Prevention in the Metal Finishing Industry, in: D.E. Edgerly (ed), Pollution Prevention, Opportunities for Innovation. Lancaster: Technomic, pp 85-116. Vigneswaran, S., S. Muttamara, K. Srianandakumar, and R. Ben Aim (1989), Low Waste Technologies in Selected Industries, Environmental Sanitation Reviews, No 27.

144


Vliet, B. van, and J. Frijns (1995), Small-scale Industries, Economic Development and Environmental Issues, With Reference to Nairobi, Kenya. CUE Internal Working Document No 1, Rotterdam: CUE. Vliet, B. van, and J. Frijns (1996), Milieubeleid en Kleinschalige Industrie in Steden van de Derde Wereld. In: Derde Wereld 15, No 2, pp 163-178. Weale, A. (1992), The New Politics of Pollution. Manchester: University Press. Welford, R. (1994), Barriers to the Improvement of Environmental Performance: The Case of the SME Sector. In: R. Welford (ed), Cases in Environmental Management and Business Strategy. London: Pitman, pp 152-165. Welford R. (ed) (1996), Corporate Environmental Management; Systems and Strategies. London: Earthscan. Welford, R. and A. Gouldson (1993), Environmental Management and Business Strategy. London: Pitman. World Bank (1995), Social Indicators of Development. Baltimore/London: John Hopkins University Press. Xie, Z. (1996), A New Industrial Civilization, Our Planet 7, No 6, pp 12-13. Zwetsloot, G.I.J.M. and A. Geyer (1996), The Essential Elements for Successful Cleaner Production Programmes, Journal of Cleaner Production 4, No 1, pp 29-39.

Annex 1 Relevant Actors for Supportive Strategies Aimed at Small-scale Industries Actors in the Field of Policy Ministry of Research, Technical Training and Technology (MRTT&T)Error! Bookmark not defined. In 1988, the Ministry of Technical Training and Applied Technology (MTTAT) was established as an outcome of government attention to the small-scale sector. Soon, it was called the Jua Kali Ministry. In 1993, MTTAT merged with the Ministry of Research, Technical Training and Technology (MRTT&T). Objectives The Ministry is appointed to develop the small-scale sector in Kenya, mainly to facilitate the creation of new enterprises and to strengthen the existing ones. MRTT&T has been responsible for most government support to informal sector development since the late 80s. It had followed president Moi' s prompting to encourage artisans to form associations and register themselves to acquire identification cards. This also had the advantage that a huge data base on Jua Kali entrepreneurs could be created (King, 1996) Activities In the Sessional Paper no. 2 of 1992, Small-scale Enterprise and Jua Kali Development, it was recommended that MTTAT (by that time not yet merged with MRTT&T) and the Ministry of Culture and Social services will initiate the formation of small-scale enterprise sectoral associations. MTTAT supported the visits of Jua Kali groups from one part of the country to some of the more advanced centres to learn from each others practices. Since the merger with MRTT&T in 1993, MTTAT as a Directorate has continued its responsibility for informal sector development, although according to King (1996: 39) there is ' scarcely more than an institutional memory or tradition of dealing with micro-enterprise' . The formation of associations which are registered under the Society' s Act is encouraged to enable members to articulate their needs. There are now 230 primary Jua Kali Associations registered and 200 associations are still waiting for registration. Over 17,000 individual artisans have been issued with artisan' s identification cards (Batti, 1997). Initially the Directorate was only interested in providing Jua Kali sheds but it soon realised that land that had been allocated for this purpose in most towns was inappropriate and the artisans needed other facilities. The Directorate is now focusing on

146


other services like water, access to roads, electricity and sanitation. The Directorate has installed a committee that develops lands for Jua Kali enterprises. The programmes of MRTT&T currently include (Batti, 1997): • Sector facilitation; • Jua Kali mobilisation, (among others by issuing identification cards); • Creating an enabling environment (provision of land, infrastructure sheds, reviewing by-laws); • Training in technical skills, product design, costing and pricing; and • Marketing and publicity (creation of public awareness through public media, seminars and workshops, display of products at Jua Kali Provincial Exhibitions). Environmental Considerations According to the Ministry, the challenge will be to promote the industrialisation process without compromising the resource base to meet the needs of future generations. The country' s development and environmental issues are inter-related. Industrial development must adhere to standards of environmental protection and resource conservation, particularly in regard to industrial emission, resource utilisation, waste disposal and conditions at the workplace (Batti, 1997). Although the issue of the environment is considered important by the Ministry, it has been neglected in the face of poverty which is so acute. People are more concerned with making ends meet than protecting the environment. Safety is another relevant issue but the Jua Kali people themselves are usually not considered very aware of the dangers or do not pay close attention to these issues. Ministry of Commerce and Industry The Directorate of Industry is the overseeing body of industry in Kenya. Its functions include the preparation of industrial development policies, industrial standards, the development of large and small-scale industries, industrial licensing and export promotion. The Industrial Development Division within the Ministry houses the approving committee for the establishment of new industrial projects in the country (Ombura, 1996). Ministry of Local Government The overall aim of this Ministry is to co-ordinate and guide local authorities in their financial management and in their policy for development. Local authorities are divided into the city of Nairobi, municipalities, town, urban, and county councils, and have the duty (among others) to deal with matters of public health, water supply, sanitary control, soil conservation, maintenance and cleaning (Duchhart, unpublished). Ministry of Environment and Natural Resources The Ministry of Environment and Natural Resources has the overall responsibility for guiding environmental policies. The Ministry covers the Forestry and Mineral Resources

Appendices

147

Departments and the National Environmental Secretariat (NES). It is NES which advises on environmental issues, and this includes monitoring and impact assessment of development activities. At the local level, this responsibility lies with Environmental Committees, established by the local authorities. In particular, by-laws can have a crucial role in protecting the local environment, as they relate to matters such as water pollution and the dumping of waste. NES co-ordinates environmental actions nationally, and formulates government guidelines on the environment. It also co-ordinates the National Environmental Action Plan (NEAP), but it is not involved in its implementation. Ministry of Health Within this Ministry, the Environmental Health Unit concentrates on environmental issues. Its objectives are to minimise water, excreta and vector born diseases and to protect the population from environmental pollution and food contamination. To achieve these objectives, there is a Water Supply Programme, a National Sanitation Programme and a Primary Health Care Programme. The Public Health Act provides the necessary legislation for the ministerial activities (Duchhart, unpublished). Ministry of Energy The Ministry was established in 1979 to ensure that adequate supplies of energy are made available efficiently and at reasonable cost, and to achieve greater self reliance in energy supply in the long term. Strategies for achieving this objective are maximising efficiency, searching for alternative sources of energy (like hydro and geothermal power) and expanding the electricity network (Duchhart, unpublished). Kenya Industrial Estates (KIE) Objectives KIE was established in 1967 as a subsidiary of the government-owned Industrial and Commercial Development Co-operation (ICDC). KIE would set up a system for a planned group of small industrial enterprises by offering them factory buildings and diverse services and facilities. KIE was charged with promoting, financing, fostering and administering small enterprises. In 1978 KIE split off from ICDC since small enterprises were increasingly recognised as important for development. KIE' s primary goal was still to furnish working capital and long-term loans to small indigenous African firms. Activities By 1986, KIE had financed 400 sheds, 400 employees, 630 loans, Ksh 530 million in assets in 28 regional centres, and 18 technical service centres with wood and metal working machinery and skilled technicians serving its projects. (Ikiara, 1991). However, the lending programmes of KIE have not been satisfying; 20 to 40% of the scheduled repayments on KIE' s loans have not been made, and some loans are written off. A 1987 report by the World Bank deemed that 60% of KIE' s projects were successful. About 15% of the projects were abandoned before starting, and 25% collapsed (Ikiara, 1991). There is little co-ordination between the Ministry of Commerce and Industry and KIE,

148


causing a lack of protecting of funded enterprises. While micro-enterprises have known a very dynamic growth despite a total lack of government intervention, the small enterprises (10-50 workers) have only grown by 800 firms in a 20 year period. To fill in the Missing Middle in Kenyan industrial structure by encouraging small enterprises is still the main challenge for KIE, but until now it obviously has not succeed in it. Environmental considerations, so far have not been a part of the activities of KIE Kenya Industrial Research & Development Institute (KIRDI) KIRDI is a para-statal organisation under the Ministry of Research, Technical Training & Technology providing technical assistance through applied research to the industry and advice to government. Objectives KIRDI aims to provide technological support to enable the informal sector to become formal. KIRDI would like to see the Jua Kali sector formalised and organised so that they can benefit from a pooling of resources such as power generation or co-operative equipment. Small-scale enterprises are conceived by KIRDI as the link between Jua Kali and the large-scale industry. Using poor technology and being wasteful on energy, it is viewed that small-scale industries contribute greatly to urban environmental problems. Environmental considerations KIRDI only recently started dealing with environmental issues. The Environment and Energy Division would like to develop into a centre that will advise small-scale industries on energy and environmental conservation. On request of industries, KIRDI performs lab analysis of effluent water, all on a voluntary basis.

Societal Actors Kenya - Rural Enterprise Programme (K-REP) Objective K-REP is the main NGO providing credit for the small-scale sector in Kenya. It mainly supports micro-enterprises of which 20% is in manufacturing, and a majority in trading activities. K-REP is not confined to rural activities as the name suggests. Apart from implementing credit programmes, K-REP provides a specialised information base on Jua Kali issues. Activities Apart from providing credit facilities and programmes, K-REP conducts research on the small-scale sector, especially base-line studies, and provides some training for staff

Appendices

149

members of organisations dealing with the small-scale sector. K-REP is a member of several organisations on small-scale enterprise development, among which are the Global Micro Finance Network and the City Council Small-scale Committee. However, providing credit to small-entrepreneurs remains its primary task. Conditions for obtaining credit are that the entrepreneur must have a running business and must belong to an organised group of entrepreneurs, which is willing to join a credit programme. The group representatives can contact K-REP field officers to apply for a programme. The officer will be attached to the group during the programme as provider of training sessions. So far, K-REP has mainly reached entrepreneurs above the lowest 25% income level and is now formulating programmes to reach the poorest entrepreneurs. K-REP is convinced that savings can be made at every income level and thus that credit can be provided. Environmental considerations To date, most promoters of small-scale industries, including those providing credit, had assumed that the small-scale sector caused little damage to the environment. Of all credit institutions none is keen on environmental protection. According to Aleke-Dondo (1997), all assistance programmes need to be made aware of environmental considerations, so that they in return can put environment on the agenda of the industries. A forum should be established to make the entrepreneurs aware of the environment and training programmes should include environmental protection issues. One way to drive pollution control is to incorporate environmental criteria in credit programmes. A viable enterprise needs to be environmentally sound and this would also improve the feasibility of the credit programmes, given that pollution control could go hand-in-hand with more efficient production and limited wastage of resources. This would, however, add another burden to the enterprises which would make the credit facility less attractive. Most small enterprises simply cannot apply an environmental impact assessment to inform credit providers of their environmental performance. In fact, it would be a step back to the integrated method of credit provision which did not prove to be effective. It seems that a better approach would be to open a separate credit programme specifically assisting environmental improvements at the enterprises (AlekeDondo, 1997). ILO - FIT programme The International Labour Organisation has, in co-operation with the Dutch NGO TOOL, a project on small-scale enterprises called FIT, which stands for "Farmers Implements and Tools". The project focuses on small-scale enterprises in metal working and food processing. The project aims at supporting small-scale enterprises in these sectors in 6 African countries during a period of 5 years. FIT provides non-financial services to improve production of metal Jua Kali and small food processing enterprises. Objectives The overall objective is to develop new ways for local NGOs to provide sustainable assistance to their target groups. Therefore, special attention is given to implementation strategies. After a research phase, workshops are planned with the entrepreneurs to challenge problems. The workshops should preferably be designed and sponsored by

150


local large-scale industries. Seeking funds from local formal enterprises is quite a new strategy, but has several advantages: local knowledge is transferred from formal to informal sector and large scale enterprises usually have funds especially to be spent on these kind of activities. For many companies, the sponsoring of Jua Kali activities is considered to be good for image-building. The objectives of the FIT project in Kenya are to make Jua Kali workers improve their work by creating awareness and building skills in adapting low cost solutions to their current conditions of work. Projects facilitated by the FIT programme are Jua Kali shows, where artisans’ products are presented to other artisans and the general public; exchange events to show one Jua Kali area to the artisans of another; strengthening associations; and Rapid Marketing Appraisals. It facilitates, for example, meetings of small entrepreneurs and/or salesmen to learn from each other. The enterprises involved in these exchange visits have benefited from improved technical and managerial skills, improved linkages with suppliers, and ideas for new products (Tanburn, 1996). Environmental considerations Within the FIT project the emphasis is more upon occupational health issues than environmental pollution. The target group includes sheet metal workers in the Kamukunji area in Nairobi (Baumann et al, 1995). The focus is to achieve positive changes in their unsafe and unhealthy work conditions and working environment. With the Undugu Society, an inventory of occupational health conditions and environmental pollution was made in the Kamukunji area. Very little has been done on health and safety so far. The problem is that NGOs do not really proceed with first ideas on improvements. Intermediate Technology Development Group (ITDG) ITDG is an international NGO, with head offices in the UK. It was founded some thirty years ago, after Schumacher' s call for an organisation to promote appropriate technology. Its original role was to inform policy makers and development workers, but over the years the organisation has developed a number of projects with communities in the developing world. ITDG is, in co-operation with UNIDO, involved in a project on the environmental impact of small-scale industries in the Third World. This project aims to enhance understanding of how small-scale producers can contribute to environmentally sustainable employment creation by providing reliable and supportable information about the environmental impact of small-scale industries. The research is based on sub-sector case studies of brick-making in Zimbabwe and textile dyeing/finishing in Bangladesh. Comparisons of environmental impact and management will be made between scales of production within sub-sectors, and options for managing and reducing environmental impact by small-scale producers will be identified and compared. The methodology to be followed will draw upon the cradle - to - grave approach of ' life-cycle analysis' , and the systems approach of ' sub-sector analysis' . In Kenya, existing programmes of work - in agriculture and pastoralism, building materials and shelter, communication, transport and energy - have expanded over the years. Recently, new activities in the Jua Kali sector have been developed. ITDG-Kenya has a few projects on small-scale industries: in Migori they work with Jua Kali (around 2500, metal, wood, mechanic). They include health and safety issues, as both workers

Appendices

151

and owners indicated this is a problem. They have done little on the environment, apart from a small study on the recycling of oil drums. Other environment related projects address the improvement of stoves to reduce indoor air pollution, and land degradation by stone quarrying. The methods ITDG uses are: improving tools, setting up tool hiring facilities, product development and product quality projects, marketing and promotion. They work directly with the Jua Kali, not through politicised associations. They also link with technical training institutes and the Department of Applied Technology of the Ministry of Research, Technical Training & Technology. Kenya Energy & Environment Organisations (Kengo) Kengo is the national environmental NGO, representing Kenya in international environmental NGO networks as IUCN and Friends of the Earth International. Kengo was established in 1981 as Kenya Energy NGO. However, since 1987, Kengo has expanded its activities. It is a membership organisation, which is funded by international donors and contributions from its members. There are no financial arrangements with the Kenyan Government. Kengo is based in Nairobi and has 3 resource centres in rural areas. It influences policy by organising workshops with policy makers and members of parliament. Activities Until recently, Kengo was mainly involved in rural environmental issues, such as land degradation, nature and forest protection, and energy consumption (Kengo participated in the diffusion of energy saving stoves). Kengo is working with communities on conservation issues and awareness raising programmes. Kengo is conducting research in Thika on industrial pollution. Here all industries are identified, as well as their pollutants and there is dialogue about what can be done. Implementation of monitoring however, is lacking. The Environmental Law and Review Project is aimed at carrying out a systematic review of existing legislation on environment in Kenya, with a view to strengthening it. The project started in 1993 and the first phase ended in 1996 by issuing the seminar proceedings "Management of Land and Land Based Resources in Kenya: Proposals for a National Policy and Legal Framework". The second phase will include participation in the government' s effort to re-define and review the role of the institutions charged with environmental management and co-ordination. Kengo is represented in the steering committee. The project has so far mainly considered land based resource management and the relevant policy framework, not so much urban industrial pollution issues.

Actors Within the Industrial Sector Kenya Association of Manufacturers (KAM) Since its establishment in 1964, KAM has united manufacturers in Kenya with information, advocacy and training programmes. Together with the Federation of Kenyan

152


Employers, KAM is a member of the East African Business Council, which aims at distributing resources more efficiently among industries (such as electricity, information on technology, joint venture possibilities). KAM benefits enterprises by lobbying policy makers on subjects as taxation, legislation and import duties. For instance, KAM was instrumental in making environmental equipment duty free. Among the members there are only few small-scale manufacturers. There has been some incidental involvement in Jua Kali issues (such as workshops on quality production, involvement in a UNIDO programme on subcontracting between large and small firms), but KAM does not have its own programme specifically aimed at smallscale industries. According to a KAM representative, pollution levels from small-scale industries could be lowered as the enterprises modernise and production becomes more efficient. Public agencies should put up environmental standards and the few existing standards should be harmonised. Small Enterprise Professional Service Organisation (SEPSO) Established in 1989 as a business counselling unit of the Friedrich Newmann Foundation, SEPSO serves its members by representing their interests and offering technical and management assistance. Most clients are to be found in the informal sector, encompassing small-scale enterprises, private doctors and traders. Support provided to small-scale industries is mainly technical, like in the acquisition of machinery and equipment. The use of inadequate technology is considered by SEPSO to be the main cause of pollution in the small-scale sector. But SEPSO acknowledges that it will be very difficult to support small-scale industries both in economic and environmental ways, because "the society outside the small-scale industry sector does not care about the environment and the operator may feel overwhelmed and unable to make an impact even if he improves his factory". As a strategy to address environmental issues in small-scale industry development, industries in different categories are awarded for environmental improvements. Federation of Kenyan Employers (FKE) Representing the Kenyan employers, FKE harmonises and defends employers interests. FKE supports its members in order to enable them to realise the full potential of their enterprises by promoting increased labour productivity, sound management techniques, better industrial relations, fair labour practices, effective work organisation and staff motivation. Only when small entrepreneurs seek advice or support does FKE become involved in the small-scale sector. Small-scale industries are viewed as the basis for industrial development in Kenya, however, other agencies are perceived to be more appropriate to support the small-scale sector than FKE. There is some involvement in environmental pollution problems, through a study of industrial pollution conducted in collaboration with ILO. Kenya Management Assistance Programme (K-MAP)

Appendices

153

The Kenya Management Assistance Programme is a non-profit organisation founded by the private sector in 1986. K-MAP does business counselling and training for small entrepreneurs and is assisted by professionals of large enterprises. Their training programs (such as quality management) could incorporate environmental issues. K-MAP has an extensive network of contacts, and participates in the commission of organisations on the improvement of the small business enabling environment (CISBE). K-MAP acknowledges the pollution impact of small industries and argues that what needed is a more efficient industrial production and proper working areas. The environment is not included in their training programmes. Proper management skills are also important for pollution control, and the environment could be included as part of record keeping and quality management. Although K-MAP has no environmental experts associated with them, they do have links with others.

Annex 2 Monitoring Nickel Plating of Balance Scale Scoops Process scheme: Error! Bookmark not defined.Operation Degreasing Copper plating Nickel plating

Inputs

Outputs

Detergent water CuCN - Cu2+ NaCN 2 kg per week pH 8 - 9 NiSO4 - Ni2+ H2SO4, HCl + NaCl Boric Acid pH = 4.6, T = 30ºC

Waste water Cyanide Acid effluent Cu2+ Acidic effluent SO4, Ni, wash-outs Boric Acid

Number of scoops verses Ni2+, NiCl2, and NiSO4 concentrations in the bath: 0 scoops

1150 scoops

Ni2+ (g/l)

28.8

31.7

NiCl2.6H2O (g/l)

22.4

20.2

NiSO4.7H2O (g/l)

111.6

128.0

weight anode (kg)

28.5

1150 scoops (added: 25 kg NiSO4) 32.3

2550 scoops

3375 scoops

36.4

36.4

20.2

21.4

22.4

130.8

149.0

147.9

24.4


156

Bath operating conditions for nickel plating: study enterprise Ni2+ (g/l) NiSO4 (g/l) NiCl2 (g/l) H3BO3 (g/l) pH T (ºC)

Range in literature

Sittig, 1978

EPA, 1987

Vigneswaran et al, 1989

Modak et al, 1996

93

da Silva et al, 1993 60

28-37

60-107

85-107

111-149

100-413

225-413

335

210

100

200

20-23

30-75

30-60

75

60

60

40

52

30-47

30-45

47

45

45

4.6

1.5-5.5

1.5-5.2

30

46-71

46-71

5.5 55

66

Annex 3 Monitoring Inputs and Outputs of the Foundry Error! Bookmar k not defined.D ate

Alumi -nium Scrap (kg)

9.4.96

Kerose ne (l) estima te

Sand (kg)

Sodium Silicate (kg)

CO2 (kg)

Waste (kg/ melt)

62

18

160

20

9

5

10.4.96

50

18

220

32

9

10

11.4.96

54

18

220

32

9

10

13.4.96

41

18

200

24

9

10

15.4.96

68

24

220

32

9

8

16.4.96

50

18

160

20

9

4

17.4.96

Bras s Scra p (kg)

72

1

55

220

28 /2

9

4

18.4.96

58

18

200

24

8

6

19.4.96

64

18

200

24

8

8

22.4.96

70

18

220

26

9

7

55

220

32

12

10

23.4.96

96

24.4.96

31

18

240

32

9

6

25.4.96

41

18

280

33

9

7

55

280

32

12

26.4.96

162

1

27.4.96

54

18

240

24 /2

9

11

29.4.96

23

18

200

24

7

5

30.4.96

27

18

240

24

8

5

3.5.96

54

18

280

28

9

6

4.5.96

47

18

240

26

8

10

5.5.96

33

18

200

24

8

6

8.5.96

57

18

180

24

9

8

9.5.96

36

24

200

28

8

8

10.5.96

46

24

320

36

9

8

158


11.5.96

180

73

240

24

9

14

15/5/96

36

18

240

241/2

9

10

16/5/96

31

18

220

32

9

10

18/5/96

34

18

240

32

9

6

1

20/5/96

30

18

240

28 /2

8

7

22/5/96

76

30

280

32

10

17

23/5/96

152

1

67

240

28 /2

9

3

27/5/96

83

30

320

36

12

19

29/5/96

65

18

240

281/2

10

11

30/5/96

53

24

320

32

9

10

4/6/96

28

18

140

28

8

12

5/6/96

60

18

180

24

9

9

6/6/96

59

18

160

16

9

7

7/6/96

58

26

240

28

9

13

10/6/96

43

18

200

20

8

8

11/6/96

50

18

240

24

8

12

55

200

20

8

6

14/6/96

154

15/6/96

44

18

160

20

8

8

18/6/96

87

22

320

36

9

25

19/6/96

54

18

220

24

7

9

55

280

32

8

2

21/6/96

177

22/6/96

85

23

220

24

8

16

24/6/96

52

18

240

32

9

14

26/6/96

51

18

260

24

9

7

27/6/96

47

18

240

28

8

6

28/6/96

33

18

240

32

8

7

1/7/96

88

37

180

24

8

5

2/7/96

75

18

240

28

9

8

15/7/96

62

18

160

22

9

10

19/7/96

96

26

240

25

10

18

20/7/96

63

18

260

28

9

10

Appendices

159

22/7/96

53

18

240

28

9

10

24/7/96

70

18

280

28

9

9

25/7/96

51

18

280

28½

8

10

55

160

20

9

3

26/7/96

183

29/7/96

64

18

240

24

9

6

30/7/96

48

18

160

24

8

9

31/7/96

40

18

160

24

8

7

60

160

24

8

2

18

200

28½

9

11

2/8/96 5/8/96

156 98

Annex 4 Soil Pollution by Metals at Kamukunji Metal analysis of Kamukunji soil: Metal

mg / kg dry weight

Arsenicum

7.0

Cadmium

1.2

Chromium

35

Copper

38

Lead

130

Nickel

9.9

Zinc

280

Aluminium

3500

Iron

24,000

Other publications in Environmental Sociology Series (0) Gert Spaargaren - The Ecological Modernization of Production and Consumption; Essays in Environmental Sociology (Dissertation, January 1997); Dfl. 35,= (1) Orlando Jeminez Controlling Illegal Dumping of Industrial Solid Waste; Assessment of environmental policy alternatives for the Santiago Metropolitan Region of Chile (MSc-thesis, January 1997); Dfl. 25,= (2) Zerihun Desta Beshah - Industrial Environmental Management; The case of Awassa Textile Factory, Ethiopia (MSc-thesis, January 1997); Dfl. 25,= (3) Ilse Chang - Joint Environmental Policy Making at the European Level. A case study on the Priority Waste Streams Programme (MSc-thesis, September 1996); Dfl. 25,= (4) Michael ten Donkelaar - Future Member States and Harmonization with EU Environmental Policy: the Case of the Czech Republic and Poland (MSc-thesis, May 1997); Dfl. 25,=

Pollution Control of Small-scale Metal Industries in ...

Pollution Control of Small-scale Metal Industries in ...

Suggest Documents

Reduction of Air Pollution in Industries

Heavy Metal Pollution

Assessment of Heavy Metal Pollution in Topsoil

Pollution discharge Scenario of Dyeing Industries ...

Investigation of heavy metal pollution in eastern

Pollution discharge Scenario of Dyeing Industries ...

Metal Framing Channels - Cooper Industries

Heavy metal pollution in Wellington Harbour

Assessment of air pollution emission from Cement Industries in ...

Heavy metal pollution in Asian agricultural land

Heavy metal pollution in Asian agricultural land

Heavy metal pollution in Asian agricultural land

UNDERGROUND AIR POLLUTION IN METAL MINES

Metal Pollution in Coastal Sediments Author's ...

Metal Pollution in the Aquatic Environment

Control of Pollution in the Chemical Industry

Assessment of Historical Heavy Metal Pollution of

Air Pollution Control Engineering Air Pollution Control ...

PREVENTION AND CONTROL OF POLLUTION

Air Pollution Control

Pollution Control Technologies - eolss

Air Pollution - Maharashtra Pollution Control Board

Air Pollution - Maharashtra Pollution Control Board

Reconstruction of metal pollution and recent ...