Cost as a Determinant of Compliance with Environmental Regulations by Micro and Small Enterprises in the Manufacturing Sector in Nairobi, Kenya
Jane Gacoga Mputhia, Elegwa Mukulu, Joseph Keriko

Abstract
This research paper examines cost as a determinant of compliance with environmental regulations by micro and small enterprises (MSEs) in the manufacturing sector in Nairobi City, Kenya. All actors whose activities could impact on the environment including manufacturing MSEs are by law required to comply with ERs for safe and sustainable utilization of natural resources. The paper is based on a survey research that adopted a mixed research design. The target population was 358 manufacturing MSEs from which a sample of 10% (36 MSEs) was selected by stratified random sampling. Data was collected by administration of questionnaires to the MSEs supplemented by interviews and observation schedule. The study established that cost influenced compliance with ERs by the MSEs. The study recommended adoption of negotiated compliance to reduce prohibitive cost of ERs compliance and interventions to build capacity of MSEs to internally undertake environmental audits and thereby reduce on compliance costs.

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