Scavengers carry empty sacks as they arrive to sort recyclable plastic materials at the Dandora dumping site on the outskirts of Nairobi, Kenya August 25, 2017. Picture taken August 25, 2017. REUTERS/Thomas Mukoya
Scavengers carry empty sacks as they arrive to sort recyclable plastic materials at the Dandora dumping site on the outskirts of Nairobi, Kenya August 25, 2017. Picture taken August 25, 2017. REUTERS/Thomas Mukoya
Scavengers carry empty sacks as they arrive to sort recyclable plastic materials at the Dandora dumping site on the outskirts of Nairobi, Kenya August 25, 2017. Picture taken August 25, 2017. REUTERS/Thomas Mukoya
Scavengers carry empty sacks as they arrive to sort recyclable plastic materials at the Dandora dumping site on the outskirts of Nairobi, Kenya August 25, 2017. Picture taken August 25, 2017. REUTERS/

Kenya introduces world's toughest laws against plastic bags: ignore the ban and you'll get four years in jail


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Kenya has become the latest country to ban plastic bags, with the toughest laws yet. The country now has a total ban on manufacturing, importing and using plastic bags and importers and manufacturers who do not comply face fines of up to 4 million Kenyan shillings — equivalent to $38,000 or Dh139,500 — or a four-year jail term.

Leading environmental champions and lobby groups, including Greenpeace and UN Environment, praised the move, terming it “a beacon of hope” in fostering an environmentally conscious society.

The anti-plastic drive became law on February 28 but allowed a six-month window for compliance. Kenya now joins Cameroon, Eritrea, Mauritania, Morocco, Tanzania and Bangladesh in a complete ban on plastic bags. Other nations in Africa and Asia have also imposed bans on plastic of a certain thickness in the last decade, but the laws are not always enforced. For example, Uganda banned the sale of lightweight plastic bags in 2007 and taxed thicker plastic bags at the punitive rate of 120 per cent but there has been little reduction in plastic bag usage. Other countries with a ban in place have seen a thriving black market develop for plastic bags.

However, no country has introduced a law as tough as Kenya's, which punishes offenders with prison.

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Environmental organisations have hailed Kenya's new law as exemplary.

"Pollution from throwaway plastic is an ecological and public health disaster, and we welcome the leadership that Kenya is taking on this," Erik Solheim, head of the Nairobi-based UN Environment told The National"UN Environment has worked with the Kenyan government and the plastics industry to transition from plastic bag usage and brought in experts from Uganda and Rwanda to share lessons on how others have implemented this change."

Kenya's National Environment Management Authority have installed collection centres in all major retail outlets around the country for people to dispose of their now illegal plastic bags.

David Ongare, of Kenya's National Environment Management Authority (NEMA) says the push to ban plastic bags started in 2007. "We have been holding meetings with the key stakeholders, including manufacturers, importers and retail shops," he told the National.

But the manufacturing industry called for "a middle ground" to stave off economic slowdown.

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"The manufacturers want a way forward, we want clarity on the implementation of the ban,” said Phyllis Wakiaga, chief executive of the Kenya Association of Manufacturers (KAM), in the Kenyan capital Nairobi. “Can we have a middle ground? We want clean environment and economic growth to go hand in hand.”

According to UN Environment, more than 8 million tonnes of plastic end up in the oceans every year, where they not only become a health hazard and public nuisance but also affect marine life, fisheries and tourism. They also take 50 to 1,000 years to biodegrade, said Greenpeace Africa's executive director, Njeri Kabeberi, who advocates a return to traditional handwoven "kiondo" baskets.

Habib El Habr, coordinator for the Global Programme of Action for the Protection of the Marine Environment from Land-Based Activities (GPA) said plastic pollution is "one of the most pressing environmental issues of our time, harming wildlife through entanglement or ingestion, affecting air quality through burning and contributing to floods by clogging up drains”.

In recent years, huge numbers of plastic bags have been found in the stomachs of livestock being processed for human consumption in Nairobi’s abattoirs. Grazing cattle eat the bags and when it clogs up their system, they die from malnutrition.

“If this ban works, it will be a massive breakthrough for reducing plastic pollution which is causing huge damage to the planet. We hope other countries will also step up and take decisive action," Mr El Habr said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Napoleon
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Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.

MATCH INFO

Uefa Champions League, last 16, first leg

Tottenham Hotspur v Borussia Dortmund, midnight (Thursday), BeIN Sports

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