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September 24, 2018

Pay us Sh2 billion compensation or face lawsuit, plastic bags maker tells state

A trader passes on to a customer packaged bananas inside plastic paper bag at Uhuru Park in Nairobi on  August 23, 2017./JACK OWUOR
A trader passes on to a customer packaged bananas inside plastic paper bag at Uhuru Park in Nairobi on August 23, 2017./JACK OWUOR

Polythene bags manufacturer Hi-Plast Limited has given the government 30 days to pay it Sh2 billion in compensation for damages caused by the plastics ban failing which it moves to court.

The government, through the Environment and Natural Resources ministry, placed a ban on plastic bags in August. Hi-Plast wants the the state to compensate it for loss of business, general damages and exemplary damages.

Lawyer Eddy Orinda said the ministry made the declaration without proper consultations, resulting in loss of business. “This unlawful declaration has led to loss of business, default in loans, numerous layoffs and prospective suits from employees and suppliers due to the short notice,” Hi-Plast said.

The company said it has lost an estimated Sh2 billion since the ban came into effect.


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