Eco-Labelling in Kenya: What Manufacturers Need to Know
In an era where consumers are more conscious than ever about the environmental and social impact of what they buy, eco-labelling is fast becoming a market differentiator. For Kenya’s manufacturing sector, a key contributor of about 7.6% of the country’s GDP, aligning with eco-labelling standards offers a clear pathway to stay competitive both locally and globally.
Why does it matter? A 2021 Mastercard survey showed that over half (52%) of Kenyans were planning to give more value to brands that act in a responsible, transparent and honest way. Kenya is also strengthening its regulatory landscape through developments like the Extended Producer Responsibility Regulations, which require clear product labelling and greater accountability across the product lifecycle. Kenya’s exports to the EU and other green markets are also subject to rising compliance requirements. Without proper eco-labelling, even high-quality products risk being shut out of sustainable value chains.
We’ll break down what eco-labelling really means for Kenyan manufacturers, from what’s changing in the policy landscape, to how early adopters are gaining a market edge. Whether you produce textiles, food or consumer goods, we’ll explore how eco-labelling can boost your brand and bottom line.
Eco-labelling is an often-voluntary method of performance certification that identifies products proven to meet specific environmental and social criteria throughout their life cycle. These labels provide consumers with credible information about the sustainability of a product, helping them make environmentally responsible purchasing decisions.
Globally, eco-labels have become a tool for promoting sustainable production and consumption. They signal compliance with standards related to raw material sourcing, energy and water use, emissions, packaging, waste management and social equity. In regulated markets like the EU eco-labelling can be a prerequisite for market access.
Eco-Labelling as a Gateway to Export Markets
As global trade shifts towards greener value chains, clear environmental and social declarations are now required for imported goods such as the EU and parts of Asia. With initiatives like the Ecodesign for Sustainable Products Regulation, African exports face stricter scrutiny.
Manufacturers that adopt recognised eco-labels such as Kilimohai Organic, Rainforest Alliance and the Kenya Energy Star stand a better chance of retaining and expanding access to premium markets. For instance, the Kenya Flower Council (KFC) offers an eco-label called the Flowers and Ornamentals Sustainability Standard (F.O.S.S.), often referred to as KFC Silver. This label ensures that certified producers adhere to social, environmental and good agricultural practices, promoting sustainable and responsible flower production.
Export oriented manufacturers must start embedding eco-labelling into their compliance strategies as a tool for differentiation and long-term market access.
Shifting Consumer Preferences in Kenya and Africa
A growing segment of Kenyan consumers, especially younger, urban, middle-income buyers are seeking products that align with sustainability values. This emerging eco-consciousness is slowly being mirrored in product marketing. From bio-degradable packaging to locally sourced inputs, businesses that disclose their environmental and social credentials are attracting loyalty and commanding price premiums.
Domestic manufacturers can leverage eco-labelling as a branding and marketing tool to build trust with a new generation of ethical consumers.
Regulatory Push for Product Labelling and Lifecycle Responsibility
Recent policy reforms are making environmental disclosure a legal requirement. The Environmental Management and Co-Ordination (Management and Control of Plastic Packaging Materials) Regulations, 2024 require all packaging to include recyclability information and recycled content percentages. They further hold manufacturers accountable for product take-back, reuse and recycling.
While not formal eco-labels these regulations are laying the groundwork for a nationally harmonized system of sustainability disclosures. In effect eco-labelling is moving from voluntary to expected, especially for industries handling plastics, electronics and packaging.
Early adopters of these systems will have a smoother path to compliance and avoid potential legal or reputational risks.
Green Finance and Investment Preferences
Banks and investors are increasingly using environmental and social performance indicators to assess borrower’s risk. The Draft National Green Fiscal Incentives Policy Framework proposes tax breaks and procurement preferences for green labelled products. Similarly, sustainability-linked finance is more likely to flow to manufacturers that can demonstrate compliance with verifiable eco-labelling criteria.
This signals a shift to viewing eco-labelling as a strategic enabler of financing, especially for capital intensive industries. For example, forms producing eco-labelled building materials may be better placed to attract investment through Kenya’s evolving green bond and credit markets.
There is potential to position manufacturers as lower risk, future ready partners.
Our Perspective
As Protos Capital LLP, we’ve been at the forefront of Kenya’s eco-labelling journey, most notably through our collaboration with the Kenya Association of Manufacturers (KAM) to develop the national Eco-Labelling Guidelines for the Manufacturing Sector. This work has positioned us to understand both the policy intent and the practical realities facing manufacturers on the ground.
Industry players are keen to adopt eco-labelling but need support in aligning production processes, documenting compliance and effectively communicating sustainability claims and this is where we come in as advisors.
Early adopters are already gaining ground. We believe the time is ripe for Kenya’s manufacturers to embrace eco-labelling as a lever for long-term growth and resilience.