The Application of Environmental Management Accounting Techniques by Manufacturing Firms in Kenya

Abstract

Purpose

Though environmental management accounting (EMA) is a globally recognized accounting practice, its application and development within several developing economies remain stunted. The aim of this chapter is to provide an overview of the extent to which EMA practices have been implemented by local manufacturing companies in Nairobi, Kenya.

Methodology

We measure the degree to which EMA methods have been adopted by manufacturing entities and hypothesize that firm size, financial performance, and regulation are positively associated to the extent to which EMA techniques are applied by Kenyan corporations. The chapter employs a mixed methods research approach and combines the use of surveys with semi-structured interviews to gain insights into drivers of EMA and the extent to which these methods are applied locally.

Findings

We find environmental regulation and financial performance are positively associated with the level of EMA practices applied by manufacturing entities.

Originality

The findings illustrate the complexities of applying EMA practices within an emerging context and provide evidence that EMA practices are still predominantly used by entities to meet local regulatory requirements. The qualitative findings indicate there could be some companies who engage with EMA at a more sophisticated level.

Citation

Wachira, M.M. and Wang’ombe, D. (2019), "The Application of Environmental Management Accounting Techniques by Manufacturing Firms in Kenya", Environmental Reporting and Management in Africa (Advances in Environmental Accounting & Management, Vol. 8), Emerald Publishing Limited, Leeds, pp. 69-89. https://doi.org/10.1108/S1479-359820190000008004