While working in the beverage industry for over a decade, Louisa Gathecha became increasingly conscious about how the glass waste that was generated in the country was managed.
Every day, several tonnes of discarded glass bottles would end up in landfills or illegal dumpsites due to poor collection systems, a lack of segregation at the source and an unreliable value chain.
“Kenya's glass recycling rates were alarmingly low. Out of the approximately 310, 000 tonnes of glass waste generated annually, a paltry 30 percent was recovered and recycled,” said Louisa in an interview with Powering SMEs.
With very little glass waste being recovered, manufacturers in this sector struggled to source quality recycled cullet, meeting only 42 percent of their needs locally.
“A lot of discarded glass waste littered the streets and harmed ecosystems, yet beverage producers had to incur huge costs importing virgin glass for their bottling needs,” explained Louisa.
Furthermore, the glass collection ecosystem was fragmented and informal, relying on middlemen and informal collectors often working in unsafe and exploitative conditions.
“As global and regional markets demanded higher environmental and ethical compliance, there was a need for certified, traceable recycling models,” explained Louisa.
But the available informal models did not meet global compliance and sustainability standards such as B Corp, which are critical for partnerships with global brands. Where others would see a crisis, Louisa saw an opportunity to create a business that would help to preserve the environment while also creating work opportunities for women and youth.
“Witnessing a disconnect between discarded glass and the high cost of importing virgin materials, we decided to launch Bottle Logistics East Africa Ltd in 2019,” she said.
The initial days of the company’s operations involved small-scale collection and manual sorting, but today, the company processes over 600 tonnes of glass waste every month. The company, which has a workforce of 250 comprising mostly women and youth, also processes over one million returnable bottles monthly for local beverage companies.
Currently, the company has active operations in Nairobi, Machakos, Mombasa and Nakuru counties in Kenya, and plans to expand into the wider East Africa region.
Louisa said that achieving that level of growth has not been easy for the company, which has had to overcome several obstacles over the five years that they have been in operation. For instance, getting a local investor who would understand their long-term vision and provide them with patient, affordable capital in an environment where interest rates are over 16 percent, was not easy.
“Upgrading equipment, automating processes, and expanding operations all required significant investment, which in the beginning, was very difficult to come by,” stated Louisa.
Meeting international standards and environmental regulations that were essential to work with key clients and access valuable markets also required significant investment, which again was initially difficult to come by.
The company also faced the challenge of educating the public on the importance of sorting waste at source, to make it easier for glass recycling firms to process the waste.
“Many people don't know much about glass recycling, especially those who create the waste. Changing how people sort and return glass takes time, effort and money,” observed the businesswoman.
However, through the right strategy, purpose and persistence, she pointed out that they have been able to overcome most of the obstacles they faced when they were starting out.
“In the process, we have learnt that sustainability and profitability can go hand in hand,” posed Louisa.
Key partnerships with organisations such as the Kenya Climate Innovation Centre (KCIC), have also helped the business adopt tools and strategies that are essential for scaling operations.
“Through the KCIC Swift programme, we received business coaching and learnt from other entrepreneurs what it takes to run a successful waste management firm. We also went through an investor readiness program that enabled us to attract funding,” stated Louisa.
KCIC also helped the organisation to streamline and automate their company processes in human resource management, health and safety, as well as quality and procurement management in readiness for a Bcorp audit.
In the near future, the business, which has a network of over 120 waste collectors, plans to increase its glass waste recovery from 600 tonnes to 1,200 tonnes per month.
“We will expand our collection network and scale direct source recovery from more bars, restaurants, and commercial hubs,” posed Louisa.
The company also plans to fully automate their production process to double their reusable bottle washing capacity to over 2.4 million bottles per month. They are also working on obtaining B Corp certifications to open new business engagements with multinational companies, as well as formalise operations within the East Africa region.
“By doing this, we expect to create over 500 jobs, prioritising youth and women, while formalising employment relationships and improving working conditions,” posed Louisa.
