Every year Kenya generates 13 million litres of used lubricating oil from about 40 million litres of new oil. The used oil generated simply disappears from view - poured into sewers, spread on roads or dumped with other garbage.

Most used oil eventually end up in the water system. This threatens water supplies in Kenya. This problem is more acute in Nairobi. Mukuru-Ngong River, like many other rivers in Nairobi, is heavily polluted by used oil poorly disposed by Motor vehicle mechanics who derive a livelihood by repairing vehicles along the riverbanks.  Poor slum households who live in the slums, through which Mukuru-Ngong River flows, utilize the water from the river. The incidence of waterborne diseases among the slum households is high.

This project pioneers a novel approach of collecting and recycling waste engine oils. Motor vehicle mechanics earn credit points for safe collection of used oils; credit points gained are redeemed by the mechanics in the form of cash, or accumulated as savings against which loan is obtained. The used oil is sold to re-users, recyclers and oil companies for safe disposal.

This is an incentive scheme in which target participants make money and access loans by trading pollutant hence curtailing poor disposal. The problem is further tackled at three important levels: Policy level by establishing demand driven policy formulation and implementation; Meso level by working with institutions and industry networks; micro-level by working with mechanics and households to curtail poor used oil disposal.

The idea :  This project pioneers a novel approach of collecting and recycling used oils in which motor vehicle mechanics earn credit points for safe collection of used oils. The credit points gained can be redeemed by the mechanics in the form of cash or accumulated as savings against which loan is obtained. The used oil is sold to re-users, recyclers and oil companies for safe disposal.

Goal :  To improve livelihoods of slum dwellers by reducing the incidence of disposal of used engine oils into Mukuru-Ngong River by motor mechanics operating along the riverbanks.

Purpose :  To pilot and expand a  collection and recycling scheme  in which motor vehicle mechanics gain credit points for safe collection of used engine oils. The points earned by participants in the scheme enable the participants to earn money and access loans.

Used  engine oil accounts for almost 91% of oil poluttants  in the Mukuru-Ngong river. Most of the oil originate from motor vehicle mechanics who dispose the used oil directly into the river, or into open drainage systems. Motor vehicle mechanics have no incentive to look for costly means of disposing used oil. Neither are there any mechanisms in place to provide  safe disposal that ensure environmental  sustainability. "Banking on Oil"  is an incentive scheme which enables the mechanics to collect and trade waste oil for cash or to accumulate savings. This savings then allows the mechanics to access credit for improving their businesses.

This approach is unique in a number of ways:

An incentive to make money out of pollutant/waste. Used oil is worthless to many people. A chance to earn money or access loans by trading waste is attractive to the target group, most of who are in survival businesses.

Targeting the cause rather than the symptom.  Motor mechanics are a major cause of oil pollution (estimated at about 78%). By involving them in this scheme, the project ensures that the problem is arrested at source.

Other approaches have had minimal impact. Mechanical and other methods for removing oil from river water are expensive and unsustainable. The good approach is to stop oil disposal into the river. That's the starting point.

Poor disposal of pollutants is a result of weak environmental governance. This not only requires better policies, but a demand driven compliance to such policies. This project hopes to pilot a demand side approach to environmental governance.

The use of credit points redeemable in cash or loan provides an opportunity for mechanics to grow their businesses. This ties livelihood of the mechanics to the safe collection of used oil.

The project highlights opportunities for environmentally friendly enterprises available within the slum areas, e.g. waste oil collection, which is potentially beneficial to their health.