Entrants's Name: Collins Apuoyo

Country: Kenya

Field: Microcredit

Innovation - idea: My organisation has adapted the customer loyalty program technology - like the one used in airline industry - to encourage safe collection of used engine oil generated by motor vehicle mechanics thereby reducing the incidence of oil pollution of the Ngong River in Nairobi. The mechanics gain award points for used oil safely collected. Once mechanics achieve 1000 awards points, they can redeem these in the form of cash or loans for improving their businesses. Through the incentive program, my organisation has over 8 months collected 95,000 litres of used oil which would otherwise have been disposed into the environment.

Innovation - why it is pioneering:  This is the first effort of its type in Kenya to try and address the problem of used oil management, especially oil generated by informal garages and mechanics.  The model adopted by this program is self sustaining and addresses all aspects of sustainable development.  Many environmental programs adopt a curative approach to tackling the problem of pollution. This program uses the preventive approach by stopping pollution at source.

Strategy - how it achieves impact: For every litre of used oil collected by mechanics our organisation awards two points. When a mechanic achieves 1000 points, he/she can redeem the points in cash, or seek a loan. The cash or loan is used to improve the motor vehicle repair business or to meet pressing family financial needs. The loan is repaid by delivering more used oil. In this way the mechanics are incentivized to collect more oil and to even go far and wide to collect more oil. In this way, no used oil is discarded into the environment hence reducing oil pollution.

By involving poor households in the collection of used oil, the project is creating an income source to these households hence securing their livelihoods.

Strategy - growth plans: At the moment our facility can handle upto 150,000 litres of used oil. We hope to have a handling capacity of 350,000 litres. To achieve this we hope to enlarge our operations to involve small scale industries who are also major producers of used oil. We are also looking forward to establishing a small scale oil recycling facility. We will pilot small scale oil re-processing and if successful, we hope to privatise this by inviting a private sector operator to take up the facility. We also hope to replicate this operation in other towns in Kenya

Impact to date: The technology has had many social and economic benefits:

 87 mechanic participating in the program are accessing cash and loans for collecting waste oil  35 slum households joined the program and are collecting used oil for which they are now receiving a regular income.  Used oil from mechanics is no longer finding its way into river system hence improving water quality and enhancing biodiversity.  Revenue generated by my organisation through sale of used oil to recyclers has been used to construct 5 community managed toilets for the slum community living along the Ngong River.

Future impact: My dream is to have small scale recycling of used oil adopted as a viable enterprise with at least 15% of total engine oil market in Kenya taken by recycled/green oil. I look forward to seeing at leat 5 smal scale oil re- processing facilities established in key towns in Kenya to recycle used oil. I also see potential for the establishemnet of a large fund in which key stakeholders in the oil industry contribute into to provide incentive for the safe management of used oil. This would have a great impact on the environmnet especially riverine ecosystem.

Sustainability - resource base: Our organisation has 7 staff working on the program. We have managed to get community participation through involvement in oil collection. We currently sell the used oil to recyclers and users e.g. steel smelting firms. We have so far received financial support from the World Bank's DM and IBERA Africa, a power generation firm in Kenya. We are currently seeking partnership with major lubricant manufacturers in Kenya with a view to establishing a used oil management fund.

Major challenge for the field: 1. Undertaking a pioneering work in a policy vacuum. This opens a lot of space for rent seekers from municipal/city authorities. 2. How to manage the residue from recycled oil. This has slowed our progress towards full scale recycling.

Contact Information:

Name: Collins Apuoyo
Mailing address: P O Box 7539
Country: Kenya
Email: c.apuoyo@epsprogram.org
Tel: 254-020-557778
Fax: 254-020-557779
Website: www.epsprogram.org