CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The need for Environmental Accounting has become the concern and focus of nations and responsible corporate managements. It became one of the foremost issues on the agenda of nations and businesses earlier in the 1990s and the reasons for this were varied emanating from both within and outside of the firm and particularly at the global level (Okoye and Ngwakwe:2004:220-235). A lot of government enactments, laws and regulations on environmental protection have been made in several nations of the world.
In the light of the awakening to environment protection, various laws and regulations such as the Environmental Impact Assessment Act, 1992 have been enacted. These require corporate managements to consider the environmental implications of all internal decisions of their managements. Also, all organizations monitored by environmental policy agencies in Kenya are expected to demonstrate much consideration in decision making.
Environmentalists agree that it could be more cost effective and beneficial for companies to acquire pollution prevention or clean technology than those of pollution clean-up. It is also observed that in environmental regulations, there is a shift from the ‘command and control’ approach to market-driven forms in which pollution prevention alternatives are replacing pollution cleaning approach. It follows therefore, that determining the appropriate pollution prevention approach may lead to additional decisions to be taken by management. Such decisions may include selecting capital expenditures, and in the opinion of Shield, Beloff and Heller (1996:5), expenditures such ‘as markets for emissions’ allowances development, may require companies to determine whether it is more cost beneficial to buy or sell these allowances, giving the cost of avoiding the covered emissions.’ This is with regard to carbon trading and sequestration.
It is rightly said that the world’s two greatest challenges are poverty and the systematic destruction of the environment. These two challenges have the capacity to destroy the entire world. It is considered that the world’s poverty level, particularly in the less developed nations is largely due to the inability to manage environment which is fast degrading. Whereas industrial emissions and effluence constitute great threat to the atmosphere, the native farmers are no less a threat to the effect of the ozone layer, the seas, oceans and land. Local farmers also systematically destroy the biodiversity through continued crude method of farming, felling of trees and bush burning and non-sustaining fishing methods without replacement of the natural resources.
Environmental issues for purpose of economic and cost accounting have also been controversial even though the topic has been identified for discussions for the past four decades. This is because common criteria for value measurement of non-marketed, non-monetized resources and impact on externalities have not been agreed.
Previously, corporate organizations have ranked business considerations based on profitability. Companies have also recognized all indirect expenditures as overheads without accounting for impact on externalities. According to B. Field and M. Field (2002: xv), little was recognized of the environmental depletion and degradation to the environment until a few well-meaning people in the developed countries realized that it was no good having great corporate profits and material well-being if they come at the cost of large scale of the ecosystem by which we are nourished. It became clear that degradation, pollution and accelerated destruction of the ecosystem and the depletion of non-renewable environment biodiversity would soon become very dangerous to human existence.
B. Field and M. Field conclude that, ‘what once were localized environmental impacts, easily rectified, have now become widespread effects that may very well turn out to be irreversible.’
The world at large has need to evaluate, assess and effect accounting reporting for raw materials, energy consumption and use of natural resources which have systematically depleted the environment. Besides, the negative impact on the biodiversity through human and industrial activities and the nations’ need to protect the environment, have made for global regulations. These regulatory environmental laws however require only voluntary disclosure in financial statements of environmental information on industrial emissions, degradations, industrial wastages and all activities which impact negatively on the environment. As a result of the great impact on the ecology of oil and gas producing environment of the Niger Delta in Nigeria, which has caused political unrest in the area, Owolabi (2007:63) is of the opinion that the political unrest in the Niger Delta cannot be wished away until there is a policy to incorporate environmental concerns into the nation’s oil and gas industry planning, management and decision making. On environmental costs, he concludes that ‘Costs and benefits need to be properly attributed, a clear distinction made between the generation of income and the drawing down of capital assets through resource depletion or degradation.’ paying attention to the environment. Conventional accounting practice has not recognized environmental accounting for materials, water, energy and other natural resource usage.
Besides, conventional accounting has not provided for such practice and particularly for Notable studies in environmental accounting are the Ontario Hydro Full Cost Accounting (1993) and the AT &T Green Accounting of the U.S. Environmental Protection Agency (1993). Also, the industrial green substance emissions (Carbon dioxide, Methane and Hydro fluorocarbons) and the penalties resulting from the Kyoto Protocol (December 1997) have made it a requirement for corporate organizations to take serious considerations and actions on corporate capital projects and investments.
In the light of the background of increasing environmental attention, and the fact that the oil and gas sector, the mineral extractive and indeed the manufacturing sectors have profound production impact on the environment, the study has explored an assessment of Environmental Accounting in these economic sectors in Kenya. This is expected to facilitate effective and efficient costs measurement and reporting for corporate decision making.

1.2 Statement of the Problem
Canada, Norway, Netherlands, United Kingdom and the USA have led in the pursuit of degradation and pollution prevention, control and the need for environmental safety (Skillius, A and Wennberg, U: 1998:54-59; IFAC: 2005:9). Also, leading developing nations are Kenya, Zimbabwe, Namibia, Philippines and Indonesia. They have led in championing policies to address need for accounting and accountability for environmental costs.
Conventional approaches of cost accounting have become inadequate since conventional accounting practices have ignored important environmental costs and activities impacting consequences on the environment. Corporate neglect and avoidance of environmental costing leave gap in financial information reporting.
The need for corporate organizations to develop environmental cost responsiveness and to disclose in annual financial reports environmental information has become of great importance.

1.3 Objectives of the Study
General objective
The broad objective of the study is to investigate best practice of environmental accounting among manufacturing companies currently operating in Kenya.
The specific objectives of the study are to: 1. To assess the independence of tracking of all costs impacting on the environment. 2. To analyse the effectiveness of environmental costs reporting and disclosure. 3. To investigate the extent of disclosure of environmental costs in the financial statements. 4. To find out the adequacy of environmental policy regulations.

1.4 Research Questions
The questions arising which are to be addressed in this study are: 1. To what extent are environmental operating expenses tracked independently of other operating expenditure? 2. To what extent of reasonableness are environmental capital projects and investments integrated into environmental cost consideration for purpose of internal decision in companies in Kenya? 3. To what extent are there disclosures on environmental issues in Annual Reports and Financial Statements? 4. To what level of adequacy are policy regulations on environment in Kenya to ensure control and prevention of environment degradation and pollution?

1.5 Justification of the Study
The study will evaluate the challenges and prospects facing organizations with regard to the basis of disclosure of environmental accounting concepts and reporting. Ultimately, environmental accounting disclosure is paramount in corporate organizations in Kenya and elsewhere as it has become an issue of concern at the global level.

1.6 Significant of the study
The significance and justification for this study is to engage corporate organizations to adequately provide for environmental protection in their internal policies on investments and projects which impact on environment. This approach will facilitate protection of the eco-efficiency and competitiveness among corporations in all productive sectors of the economy. The study will facilitate environmental cost reporting responsiveness and disclosure to investors and environmental regulatory bodies. 1.7 Scope of the study This research will be carried out in Athi River Mining ltd which deals with mining, quarrying, oil and gas extraction, fertilizer manufacturing, cement and concrete product manufacturing. The study will cover 5 departments with a total of 180 respondents. A sample of 20% of the respondent in each department will be considered making a total of 36. 1.8 Research Limitations
Environmental risks which have been limited to legal claims for damages and land remediation have not been considered as accounting issues. This has partly been responsible for the financial sector ignoring environmental accounting. Environmental costing and reporting is much more than claims for damages. There is lack of environmental accounting information in corporate reporting which has been attributed to several causes.

CHAPTER TWO

2.0 LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK

2.1 INTRODUCTION

The study of Nagle (1994:243), on environmental accounting reveals that corporate managers are placing high priority on environmental accounting. Environmental accounting as a prevalent subject in the international community is not yet a priority in Nigeria. B. Field and M. Field (2002) explain pertinent aspects of environmental degradation and costs as those including emissions into the air, water and land. Also, aspects of untreated domestic waste outflows into rivers and coastal oceans, quantities of solid waste that must then be disposed of, perhaps through land spreading or incineration. Pollution include airborne SO2 emissions from power plants by stack-gas scrubbing which leaves a highly concentrated sludge and degradation which incorporates midnight dumping, illegal dumping along the sides of roads or in remote areas.
Field (2001) and B. Field and M.Field have done tremendous work on the economics of natural resources and in this instance explored the approach of benefit–cost analysis through discounting of future based input and output values of environmental projects and activities.
Measuring benefit-costs analysis has been essentially through regulatory Evaluation Impact Assessment (EIA) study on the environment. Partridge (2003), in his works condemn the whole essence of placing monetary value above other human virtues in environmental issues.
He also recognized the absurdity of discounting and discountenancing future environmental impact on human values.

2.2 Environmental costs
Environmental costs are subject to varied specifications and definitions. In the work of Shield, Beloff and Heller (1996), the term was often used to refer to costs incurred in order to comply with regulatory standards. Also, costs which have been incurred in order to reduce or eliminate releases of hazardous substances and all other costs associated with corporate practices aimed at reducing environmental impacts.
How a company defines an environmental cost depends on how the information is to be utilized, for example: cost allocation, capital budgeting, process or product design or other management decisions. Accordingly, it may not be clear what costs are environmental or not as some may fall into gray areas. That means that some costs may be classified as partly environmental and partly non-environmental (GEMI 1994; Fagg et al 1993). Identifying environmental costs has resulted in applicable terminologies such as Full Costs, Total Costs, True Costs, Life Cycle Costs and other descriptive costs, all in an attempt to emphasize the inadequacy of conventional approaches because they have not accorded recognition to environmental costs.
Whereas, traditional costs classifications in accounting are:
Direct materials and labour
Manufacturing or factory overheads, i.e. operating costs other than direct material and labour,
Sales overheads,
General and Administrative (G &A), and
Research and Development (R&D)
The U.S EPA (1989; 1995b:9; 1995c:21) and GEMI (1994) Environmental Cost Primer model (Figure 2.1) has segregated costs into direct costs, and distinguished costs which may be obscure through treatment as overheads, hidden, contingent, liability or less tangible costs.

2.3 Environmental cost disclosure
Corporate organizations are engaging more actively in environmental disclosure in their annual financial statements. This is peculiar with more financially successful companies in both the U.S.A and the U.K. In the United States of America, SEC regulations and accounting standards require American companies to disclose environmental information in annual reports. An International Public Accounting firm KPMG (1999), (Gernon and Meek 2001:98), and Aert, Cormier and Magnam (2006:303) report from the KPMG’s survey in 1996 that ‘since 1993 the percentage of 100 companies in 12 leading industrial nations that mention the environment in annual reports have almost doubled to 69%’. Also, that 23% now produce a separate environmental report compared to 13% in 1993’. The same source reveals that Roche, a Swiss conglomerate is reputable for environmental disclosure on:
Safety and Environmental protection expenditure
Accidents and incidents
Audit programme
Developments in environmental policy
Sustainable development, and
Environmental remediation
The Danish company Novo Nordisk, according to the survey, is also reputable, having in 1998 won awards for three consecutive times the European Environmental Reporting Awards.
Most disclosures at the moment worldwide including Nigeria are still voluntary and the few companies are deliberating on policies to calculate costs. Sources of disclosure of information to company investors at the moment are through Voluntary disclosure, External non-firm sources of disclosure and Mandatory disclosure
Disclosure entails the release of a set of information relating to a company’s past, current and future environment management activities, performance and financial implications. It also comprises information about the implications resulting from corporate environmental management decisions and actions. These may include issues such as expenditures or operating costs for pollution control equipment and facilities; future estimates of expenditures or operating costs for pollution control equipment and facilities. These may also include sites restoration costs, financing for pollution control equipment or facilities, present or potential litigation, air, water or solid waste releases; description of pollution control processes or facilities; compliance status of facilities; among others. Discussions of environmental regulations and requirements; environmental or conservation policies, environmental awards or prizes; existence of environmental management or audit departments, are contained in the long list (Aerts, Cormier and Magnan, 2006:327).
Soonawalla (2006:398) observes that the main environmental issues in financial reporting are summarized as:
Environmental costs, whether to expense or capitalize.
Classification of environmental costs
Disclosure on details and / or breakdowns about environmental costs
Treatment of environment-related financial impacts on assets
Treatment of liabilities and contingent liabilities and how to recognize these
Measurement of liabilities and contingent liabilities
Environmental reserves, provisions and charges to income
Impact of accounting rules (GAAP) on corporate behaviour
Environment information to be disclose in greater details.

2.4 Conceptual bases and design
Since conventional approaches of costing have become inadequate, Environmental Management Accounting (EMA) has proved beneficial. Three broad benefits of EMA (German Environmental Ministry: 2003, IFAC 2005) are emphasis on environmental law regulation compliance, eco-efficiency and strategic positioning of organizations. EMA advocates for environmental protection through cost efficient compliance with environmental regulations and self-imposed environmental policies. Examples are in planning and implementing pollution control investments or capital projects. It also involves investigating and purchasing cost efficient substitutes for environmentally degrading activities and the reporting of environmental wastes and emissions to regulatory agencies. EMA advocates for simultaneous reduction of costs and environmental impacts through more efficient use of water and materials in internal operations. On Strategic Planning, EMA advocates for the evaluation and implementation of cost-effective and environmentally sensitive programmes to ensure organizations’ long-term strategic position.
For purpose of design of Environmental Accounting, Costs identification, classifications and management are suggested alongside proposition concepts of the Global Environmental Management Initiative (GEMI, 1994) and the US EPA (1995). According to GEMI, environmental cost managements may be recognized through Environmental Cost Primer Model in which Cost Boundaries are identified as in Figure 2.1. Here, costs identification and management comprise of conventional costs such as off-site waste disposal, purchase and maintenance of air emission control systems, utilities costs and perhaps costs associated with permitting of air or wastewater discharges. Another compartment comprise of wide-range of costs (also of savings and revenues) such as: liability, future regulatory compliance, enhanced position in green product markets, and the economic consequences of changes in corporate image linked to environmental performance.
There is a category for company’s Internal Costs called Private Costs for which the company is held responsible. There is also a category for External Costs also called
Externalities or Societal Costs comprising costs such as costs incurred on adverse health effects for air emissions, damage to buildings or crops resulting from SO2 and irreversible damage to the ecosystem. Environmental Externalities costs are those which the company is not held accountable, but the organizations should take responsibility for.
The US EPA (1995) also suggests the recognition, costs categorizations and management in broad categories of Private Hidden Costs such as Regulatory, Upfront and Voluntary costs. Other categories are Conventional Back-End costs, Contingent Costs, and Image and Relationship Costs. The gathering and categorizations of environmental costs information in organizations will meaningfully require the inputs of the environmentalists, legal, operations, facility management and cost accounting specialists (Enahoro: 2004:557)

2.5 Environmental accounting standards
AICPA Environmental Issues Roundtable
Flemming (1993) reported the AICPA Environmental Issues Roundable, a technical meeting which believes that it was the appropriate time to evaluate the problems of applying accounting and auditing standards to environmental matters. Objectives of the AICPA Roundtable according to Flemming were to:
Examine problems CPAs have in practice applying generally accepted accounting principles to environment-related financial statement assertions.
Identify environmental issues for which authoritative accounting and auditing guidance may be needed.
Provide a starting point for developing guidance, including continuing professional education conferences and courses, on applying accounting and auditing standards to environmental matters.

International Accounting Standards on Environmental Issues
The International Accounting Standards Committee (IASC) and the UK’s Accounting Standards Board (ASB) have standards issued (although not specifically) to incorporate environmental issues. Specifically, the content of these standards are as follows:
IAS 36 deals on Impairment of Assets,
IAS 37 and FRS 12 on Provisions, Contingent Liabilities and Contingent assets,
IAS 38 on intangible assets.
The IASB and ASB standards have been effective since 1st July 1999 and 23rd March 1999 respectively. Among other provisions, Appendix C of IAS 37 and FRS 12 specify issues such as:
Contaminated land – legislation then to be enacted
Contaminated land – constructive obligation
Offshore oilfields – decommissioning costs
A legal requirement to fit smoke filters
A court case – deaths from food poisoning
Repair and maintenance
IAS 37 on Provisions, Contingent Liabilities and Contingent Assets is an attempt in the direction of environmental reporting. IAS 38 provides for recognition of the emission allowances rights as Intangible Assets. Also, IAS 20 touches on fair market value of rights and issue price of government and difference recognized where issue price is lower than fair market value. The difference is to be treated as Government grant. Issues are still in dispute even as America has not accented to the Kyoto document at the time of this study.
The issues on environment arising from the Kyoto Convention have further implications for need for compliance to regulations for pollution prevention and environmental protection. Besides, it touches on Carbon Allowances for nations and accounting valuation for Carbon Trading among trading nations.
Decision making in corporate organizations and the public sector for industrialization requires effective and efficient environmental cost accounting and benefit-cost analysis for impact of environmental activities. Some works have been done in this area in some developed countries especially in Canada (the Ontario Hydro case) and the US.EPA AT&T Study, and in recent years, UK, France, Sweden and Denmark. This study is therefore, aimed at the Nigeria oil & gas and manufacturing sectors because of the effect of its operations and impact on the ecology.
Findings from UNEP/ Sustainability Ltd (1996) reveal that although not many nations are currently reporting disclosures on environmental issues in financial statements, but quite a growing number do so to internal management. Pressure is mounting for mandatory rather than voluntary reporting worldwide. Skillius and Wennberg (1998:24) have noted that many
European countries (e.g. UK and France) have various national Pollution Release and Transfer Registers (PRTRs) following the PRTRs published by the OECD. PRTR calls for firms to report on their releases and transfers of varieties of substances and on compliance to environmental regulations. Skillius and Wennberg reveal that whereas, Sweden requires for its authorities environmental information and reports, Denmark requires its Green Accounts in line with its Environmental Protection Act 35. The Norwegian Companies Act and the Law of Accounts require that the companies must report whether it pollutes the environment and if so, what actions and plans are taken to prevent the occurrence.

CONCEPTUAL FRAMEWORK

Independent variables Dependent Variables

Environmental Cos * External Costs * Internal costs

Effect on Environmental Reporting

Environmental Cost Reporting and Disclosures * Environmental quality reporting model

Environmental Policy Regulations * Treatment of environmental cost * Accounting standards * Institutional and policy framework

CHAPTER THREE
3.0 RESEARCH METHODOLOGY AND DESIGN 3.1 Introduction This chapter comprises of the research design, target population, description of the sample and sampling procedures, description of research instruments, description of the data collection procedures and the description of data analysis procedures. 3.2 Research Design This research will consist of a descriptive research design. According to Cooper and Schindler (2001) a descriptive study deals with questions of who, what, when, where and how of the topic. The study will use survey to gather the data and involves systematic data collection and analysis method to answer these questions. This involves studying in natural setting where questionnaires will be used. Data will be gathered principally through administration of questionnaires to the selected sample, supplemented by a follow up interview with these individuals. This then assist the researcher to clear any ambiguities that might have presented themselves in the questionnaires given that the owners or finance and management staffs are not well versed with technical management financing terms.
Descriptive research design is systematic, empirical inquiry into which the researcher does not have direct control of independent valuables as their manifestation have already occurred or because they reflecting the state of happenings and qualify the obtained findings through the use of qualitative analysis (Mugenda And Mugenda, 1999).

3.3 Target Population The target population for this study will be the personnel in the following departments: | | No. of personnel | 1 | Senior Corporate management | 20 | 2 | Finance department | 43 | 3 | Industrial and plant department | 67 | 4 | Commercial management department | 30 | 5 | Procurement and supplies department | 20 | | | 180 | * Source research 2014 3.4 Sample and Sampling Procedures * The population frame will be the entire population in the five department of Athi River mining ltd. * * 3.4.1 Sampling Technique Probabilistic sampling method will be used. This gives each member of the population an equal chance to be included in the sample. This is because; the population of interest is not homogeneous and hence will be subdivided into sub categories or strata. Since the sample was small and definite the respondents will then be picked using simple random method from each stratum. This will ensure that each sampling element has an equal chance of being presented.

3.4.2 Sampling Size
This research work will basically consider the corporate environmental reports of Athi River Mining company ltd because the firm’s activities are likely to have significant impact on the environment due to its mode of operation. To this end therefore, in line with the suggestions of Mugenda (2003), at least 20% of a defined population is considered as an adequate sample size required for making an inference of the population. Out of the population of 180 staff, the researcher will take a sample of 20%, which will comprise of a total of 36.

3.5 Data Collection
3.5.1 Sources of Data In conducting this research, both primary and secondary sources of data will be used as a means of eliciting the required information needed for this research. While the secondary data will be obtained from the corporate annual reports and website of the selected company; the primary data on the other hand, will be obtained through the use of questionnaire administered both by hand, mails and e-mails. In line with related prior studies on corporate environmental disclosure practices by (Freedman and Jaggi, 1988; Guthrie and Parker, 1989; Coutts and Harte, 1995; Gray, Kouhy and Lavers, 1995; Adams, Hackston and Milne, 1996; Neu, Warsame and Pedwell, 1998); this research will limit its analysis to the use of companies’ annual reports and corporate websites for the following reasons. Firstly, information from the company website and annual reports are the main corporate documents sources that represents a company and are widely used as the main communication medium for conveying corporate activities to stakeholders. Secondly, the fact that most other prior studies used corporate websites and annual reports provides a greater potential for comparability of results. Hughes, Anderson and Golden (2001:224) also cited the frequent use of annual reports and corporate websites in corporate environmental disclosure studies. They argued that “this is due to their wide availability; and the perception that this is the medium most often used by corporations to communicate in a systematic manner with shareholders”. Also, the choice of corporate annual reports and companies’ websites as a principle focus arises due to the fact that these sources are widely viewed as a major official and legal data source for companies (Gray et. al., 1995). Furthermore, they constitute to a great extent the only source of corporate disclosure that is provided on a regular basis and it constitutes an important source of information to individual shareholders, institutional investors as well as brokers (Hines, 1982). 3.5.2 Research Instrumentation * The researcher will use structured and semi structured questionnaires as a major tool for data collection. The reasons for selection of this tool was due to its ability to gather facts from a large sample, it saves on time and confidentiality is upheld and therefore the chance of obtaining valid data are high. * Two types of questionnaires will be constructed. Structured and unstructured questionnaires will be administered to the target sample through three research assistants, each from the respective contract type categories. Each research assistant will have a corresponding number of questionnaires which are serialized. The questionnaires will be administered randomly but the research assistants take down the names of the respondents to make it easy for them to follow-up. This method is expected to increase the chances of receiving most of the questionnaires. 3.7 Data Analysis and presentation
Data gathered from the annual reports of the selected firm and responses from the field survey will be presented in tabular forms. However, percentages will also used to depict level of corporate environmental disclosure. Data collected will be analysed using descriptive statistics. Once the data is collected, it will be coded and analysed with the help of Statistical Package for the Social Sciences (SPSS). Data will then be presented using tables and graphs for interpretation.

References

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APPENDIX A RESEARCH LETTER
Dear Valued Respondent,
Athi River mining company ltd
Nairobi
Dear Sir,
Am a postgraduate student at Mount Kenya University, Thika pursuing a Master degree in Business Administration (MBA) Finance and Accounting. I am conducting a research on the Bases of environmental accounting in manufacturing Sectors in Kenya: A case of Athi River mining company ltd.
This questionnaire is designed strictly for purpose of academic research only.
It is hoped that the outcome of the research will be beneficial to the Kenyan environment and economy.
Thank you for your kind response and participation in this study. Yours faithfully

Elizabeth Waceke

APPENDIX B RESEARCH QUESTIONNAIRE
SECTION A: PERSONAL INFORMATION
1. Gender: Male ( ) Female ( )
2. Highest Qualification ( and Professional qualification, if any): ___________________
3. Status in your company and Department: ____________________________________
SECTION B: ENVIRONMENTAL COST ACCOUNTING SYSTEM 1. To what extent are environmental capital expenditures tracked independently?
a.) Very high b.) High c,) Neither High nor Low d.) Low e.) Very low 2. To what extent do these techniques differ from those used to evaluate non environmental projects? a.) Very high b.) High c,) Neither High nor Low d.) Low e.) Very low 3. What division decides whether a project should be classified as environmental?
a.) Corporate only b.) Environment only
c) Plant only
d.) Management/Financial Accounting only
e.) Environment & Corporate
f.) Plant & Environment
g.) Environment, Corporate, Environment & Accounting 4. Level at which capital budgeting occurs a) Corporate only b) Environment only c) Plant only d) Management/Financial Accounting only e) Environment & Corporate f) Plant & Environment g) Environment, Corporate, Plant & Accounting 5. When financial analysis of capital environmental expenditure is performed, how significantly are numerical estimates included for intangibles such as goodwill, improved community or employee relations, fines and penalties? b.) Very high b.) High c,) Neither High nor Low d.) Low e.) Very low 6. What techniques are used to evaluate the feasibility of environmental projects? c.) Profitability Index b.) Return on Total Assets c.) NPV d.) IRR e.) Payback f.) ROI 7. Does your organization participate in regulating/implementing environmental policiesin Kenya?
a) Yes b.) Sometimes c) No d.) Not our mandate
SECTION C: ENVIRONMENTAL OPERATING EXPENDITURE 8. To what extent does your company generate environmental cost information?
a.) Very high b.) High c,) Neither High nor Low d.) Low e.) Very low 9. Which of the following statements (a - e) best describe how you generate this information: a) Generated as part of your general ledger system. b) Generated as part of your management accounting system, separate from your general ledger system. c) Generated by a free standing system, using data electronically transferred from your general ledger or management accounting system. d) Generated by a free standing system, which does not directly access data in other systems, including non-automated methods. e) Generated by some other type of system. 10. Who are the recipients of the information?
a.) Accounts Dept. only
b.) Management accounting system
c.) Environmental only
d.) Corporate Dept only
e.) Corporate & Environment f.) Mgt. Accounts & Accts. Dept
g) Environment, Corporate, Plant & Accounts
SECTION D
On the attached table, kindly respond to the extent or level of reasonable applicability as: | | 5 | 4 | 3 | 2 | 1 | 11 | To what extent are estimates of current environmental costs utilized in new process design and technology decisions? | | | | | | 12 | To what extent are estimates of future environmental costs utilized in new process design and technology decisions? | | | | | | 13 | To what extent does the company adopt ‘cleaner’ technologies or methods that exceed requirement? | | | | | | 14 | To what extent does the company adopt ‘cleaner’ technologies or methods before they are required? | | | | | | 16 | To what extent does the company participate in voluntary environmental programmes? | | | | | |
5= Very high 4= High 3 = Neither High nor Low 2 = Low 1 = Very low

SECTION E: QUESTIONNAIRE FOR ENVIRONMENTAL POLICY REGULATIONS 17. Do you require the project operator to demonstrate that due consideration is given to the need to comply with relevant legal requirement? a) Yes b.) Sometimes c) No d.) Not our mandate 18. Are policy regulations on environment in Kenya adequate? 19. Is environmental costs development in Kenya attaining prescribed standards? 20. Do you undertake site inspection of all applicants/operators’ projects to record and check the effectiveness of site management and identify any required action?
a) Yes b.) Sometimes c) No d.) Not our mandate 21. How regular? a) Quarter b.) Bi-annual c) annual d.) (others),

APPENDIX C RESEARCH BUDGET Item | Cost (KSh) | Printing papers | 2000 | Transport | 7000 | Stationery | 1500 | Photocopy cost | 500 | Binding | 2000 | Flash disk | 2000 | Data analysis logistics | 20000 | Other logistics | 7000 | Lunch | 5000 | Total | 30,000 |

APPENDIX D RESEARCH TIME SCHEDULE (YEAR 2013/2014) ACTIVITY | Jan- March | April-May | June-July | DEVELOPING THE PROJECT PROPOSAL | | | | PREPARING INTRODUCTION AND LITERATURE REVIEW | | | | DEVELOPING DATA COLLECTION INSTRUMENT | | | | DATA GATHERING AND DATA ANALYSIS | | | | DEVELOPING FINAL PROJECT WORK | | | |