Factors influencing environmental management accounting practices among manufacturing SMEs in Nairobi Kenya

Abstract

Small and Medium Enterprises in developing countries have been the main economic growth drivers, hence they are very crucial to the nation's economic stability (Dalberg, 2011). In South Africa, Fatoki's (2012) study reports that its government dedicated the SME as a priority for reducing the unemployment rate which was around 24% in 2012 through job creation. In Kenya, the informal sector accounted for 81% of the total employment as at 2010 (KNBS, 2011). Manufacturing firms are firms involved in the production of products using raw materials obtained from the environment, hence it is important for them to conserve the environment (Chopra, 2013). According to the Kenya Association of Manufacturers (KAM), manufacturing firms are categorized into 14 sectors, 12 of which are processers classified by the type of raw materials they import and products they manufacture (KAM, 2019). They further state that manufacturing accounts for 13% of the gross domestic product (GDP) of Kenya's industrial sector and that 80% of its members are based in Nairobi.