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We have invested in a new and additional machinery to increase our production capacity. We are also launching a new product in 2021. This will contribute to the economic growth of our county and our nation.
Due to the ongoing Covid-19 pandemic, we donated portable hand washing
stations and hand washing soap to the communities in Mlolongo and Kajiado to promote hygiene and curb the spread of the virus. We have also donated a tank for provision of waster as part of the Mlolongo/Athi River Water CSR in Response to COVD 19.
Welcome to our sustainability report for the period March 2019 to December 2020, on disclosure of our business responsibilities and activities. The report focuses on the Ten Principles of Business Ethics as prescribed by United Nations Global Compact (UNGC). The reporting format is guided by the Global Reporting Initiative considering the broader perspective of our business operations and the impact we create to the community around us.
Welcome to our sustainability report for the period March 2019 to December 2020, on disclosure of our business responsibilities and activities. The report focuses on the Ten Principles of Business Ethics as prescribed by United
Nations Global Compact (UNGC). The reporting format is guided by the Global Reporting Initiative considering the broader perspective of our business operations and the impact we create to the community around us.
The scope of the report covers the progress Kapa has made in addressing the ten principles of the UN Global Compact applicable to the particular business activities carried out in the aforementioned period. This report further considers our engagement in realising the SDGs that affect our business.
Dear Stakeholder
We, at Kapa Oil Refineries Limited are proudly committed to the United Nations Global Compact Ten Principles and the Code of Ethics for Business in Kenya.
In 2019, we celebrated our 50th Anniversary of the founding of our company in 1969. Our founders were three young but determined brothers. They started a small salt packaging business called Karania Packers. Karania Packers went on to manufacture baking powder, creating our iconic blue-and-yellow Chapa Mandashi brand. But in the 1970s, we decided to venture into making quality household products for our region. And we started with edible oil. The rest
is history. Today, Kapa Oil Refineries is a leading manufacturer of edible oils, baking powder, soap, tissue, detergents, noodles and kitchen towels in Eastern Africa.
This idea of quality products for our households in Africa remains at the core of our business. Our promise to the users of our products is found in our tagline “Bright Ideas. Better Products”. We have invested in top-notch plants and machinery to ensure that we are efficient in creating quality. Our raw materials are sourced from vetted suppliers and tested to ensure that our inputs meet or exceed expectations. Our manufacturing process is certified by SGS for meeting the stringent ISO 22000:2005. And our people are continuously learning and innovating. As a corporate citizen, we are pleased to contribute to the development of Kenya and Africa by creating employment, providing products that promote the well-being of our communities and embedding sustainable processes that protect the environment, uphold human rights and promote ethical business and behaviour.
The UN Global Compact’s Ten Principles, the Code of Ethics for Business in Kenya and UN Sustainable Development Goals are therefore ingrained in our business model. By providing quality and fortified food products as well as sanitation products, we help ensure healthy lives (SDG 3). Our specific range of affordable food products helps to reduce hunger (SDG 2). Through our investment in modern manufacturing plants, we build industry, innovation and infrastructure (SDG 9). In creating employment and monitoring our labour practices, as well as those of our contractors, we provide decent work (SDG 8). Through our investment in 1.5 MW solar installation, Kapa ensures access to clean energy (SDG 7). Our decision to use the biomass by-products of other manufacturers to fire our steam boiler has reduced emissions and is geared toward climate action (SDG 13). Our processes designed to ensure zero tolerance for anti-corruption and bribery, including a hotline, robust training and top management commitment to this promotes our region’s justice and institutions (SDG 16). And we are proud to partner with other, through the Kenya Association of Manufacturing and the UN Global Compact to help achieve these ambitious yet desperately needed goals (SDG 17).
The Covid-19 pandemic has not deterred us in our commitments. It has been a challenge but we have risen to meet as our communities have. We have instituted a Covid-19 policy with several protocols to ensure that we continue to operate safely. We have put in place social distancing mechanisms in our factories and cafeterias. Handwashing stations have been erected across our campus. All persons on our premises have their temperature checked at the gate and are required wear masks properly and at all times. We have also availed testing for our staff. Despite a difficult year, we retained all our staff and have not instituted any pay cuts.
Whenever we report to work, we with a mind to provide to a Better Product. A product that is good for you, good
for our people, good for our economy, good for our environment and good for our future.
Nitin Shah
Chief Executive Officer
The Board of Directors | Fiduciaries who steer the organization towards a sustainable future by adopting sound, ethical, and legal governance and financial management policies |
The Executive | Implement the Board’s strategic, and generative plans, policies, and decisions consistent with the organization’s Vision, Mission and the Guiding Principles |
Corporate Affairs and Business Ethics | Drives the UNGC program in the organization Advocates for and monitors ethics and compliance with the Company’s policies and the Guiding Principles |
Finance & Accounts | Ensuring the adherence to integrity in the finance and accounting processes |
Sales & Marketing | Deliver quality products and services to our customers with the aim of meeting and exceeding customers’ expectations |
Production | Constantly innovates and ensures production is in line with the commitments to the UNGC principles and the SDGs. |
Quality Management | Ensure safe and high quality of products |
Human Resource | Ensure that high level of staff are sourced and developed. Ensure compliance to labour laws and regulations. Engage and create good working conditions |
OUR MISSION
Kapa Oil Refineries is an East African Manufacturer producing edible oils and household products. We aim at providing our customers with premium quality consumer goods at competitive prices while operating in an environmentally sensitive and socially responsible manner.
We respect human rights. We have not received any report of a supplier, subcontractor or staff member involved in the abuse of human rights in the year 2019 and 2020.
In the spirit of integrity and accountability in the quest to fight corruption, we ensure that all gifts and entertainment offers are recorded, reviewed and accounted for. In 2019 and 2020, we recorded a number of gifts received by staff.
No entertainment or hospitality offers were recorded for this period. The gifts were reviewed and found to be in
order.
To ensure no violation of our policies, we created a platform where employees can raise concerns without fear of reprisal and information given remains confidential and /or anonymous, mainly for our internal stakeholders as:
•Ethics Committee – Legal & Corporate Affairs Manager
•Anonymous E-mail Address: ([email protected]).
One whistleblowing report was received for the period in question. It was investigated and relevant action taken.
We strive to engage our customers through various forums including social media platforms. We introduce products
based on our customer engagement. In 2020 we introduced the following new products:
In 2019, we installed a photovoltaic (PV) grid-tied system to supplement supply of electricity from Kenya Power and Lighting Company (KPLC). This has reduced our operating costs while also reducing consumption of fuels, thus reducing greenhouse gas emissions and pollution. We also reduced our Carbon (IV) Oxide emissions by 1,355.34
Tons in 2020
| Solar (kWHrs) | KPLC (kWHrs) | Totals (kWHrs) | % of Solar | CO2 Reduction (Tons) |
Total 2019 | 1,076,084.62 | 17,381,514.00 | 18,457,598.62 | 9.79 | 698.76 |
Total 2020 | 2,087,225.78 | 16,347,318.00 | 18,434,543.78 | 11.32 | 1,355.34 |
Grand Total | 3,163,310.40 | 33,728,832.00 | 36,892,142.40 | 21.11 | 2,054.10 |
We have reduced the amount of wood fuel used in our biomass-fired boiler by using corn cobs as an alternative source of fuel, hence ultimately reducing deforestation. We have also embraced the use of more environmental friendly fuels such as coffee husks and macadamia shells.
To reduce pollution caused by wastes, we ensure that our solid wastes are recycled. In 2020, we sold 27,860Kgs of Polythene waste, 95,190Kgs of Carton/Core Waste and 190,780 Kg of Tissue Paper Trim and Mixed Waste to Maz International Limited for recycling.
LEVEL | No. of Staff as at 01.01.2020 | New Joiners in 2020 | Total | 2020 Exits | % Turnover Rate |
Assistants | 75 | 7 | 82 | 6 | 7 |
Senior Assistants | 37 | 3 | 40 | 4 | 10 |
Managers | 23 | 2 | 25 | 5 | 20 |
Senior Managers | 4 | 0 | 4 | 0 | 0 |
Total | 139 | 12 | 151 | 15 | 10 |
We have boosted Health & Safety Awareness in our organisation. Our staff are encouraged to be aware of safety issues and we ensure that all our meetings start with a safety talk.
We hold Health & Safety meetings every month where all issues are brought to light and addressed immediately.
We carry out quarterly workplace safety inspection. This is a walkabout of the factory done by the safety committee members to check for health and safety aspects such as any signs of hazards in the workplace (e.g. unguarded moving parts of machinery, slippery floors without any warning signs) and general safety awareness among staff as noted from their adherence to requirements such as use of PPE’s and observance of safe working practices while carrying out tasks.
Our Occupational Health and Safety Department came up with a Covid-19 Policy to manage all aspects of the virus in the workplace. Employees were issued with sanitizers and masks whilst being advised to frequently wash their hands and maintain social distance. All employees were also tested for Covid-19.
Incident Statistics 2020-2019
To ensure no violation of our policies, we have created a platform where employees and other stakeholders can raise concerns without fear of reprisal and information given remains confidential and /or anonymous, mainly for our internal stakeholders as:
Ethics | No. |
Reported Unethical Cases – Internal | 0 |
Reported Unethical Cases – External | 1 – Investigated and resolved |
Disciplinary cases | 3 – All Solved |
Recorded Gifts Offers | Several |
We remain committed to continue to align our business to the SDGs. Our focus will remain on the SDGs listed in page 6 above.
In 2021, we plan to:
In line with our values of integrity and accountability, this Sustainability Report will be communicated to all our key stakeholders through our common channels of communication. The channels are: