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School of Business, Economics and Tourism, Kenyatta University, Kenya

Anne Muthini and Perris Chege
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Anne Muthini: School of Business, Economics and Tourism, Kenyatta University, Kenya.
Perris Chege: School of Business, Economics and Tourism, Kenyatta University, Kenya.

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Abstract: The logistics sector is an important sector in Kenya, which accounts for 10% of GDP and all formal employment and plays a significant role in tax collection. However, Kenyan logistic businesses' performance has been fluctuating overtime. Kenyan logistics firms operating in Nairobi County are performing poorly as seen by the drop-in growth rate from 5.4% in 2011 to 4.3% in 2018, and from -7.7 % in 2020 to 7.2% in 2021. Therefore, this study seeks to evaluate effects of green logistics practices on the performance of logistics firms in Nairobi City County, Kenya. Specifically, the investigation aims to assess the effects of eco-design, green packaging, green warehousing, and reverse logistics on performance. Stakeholder, resource-based, and game theories were utilized for the investigation. A descriptive research approach was utilized. The target population was all four hundred and twenty logistics firms that are members of KIFWA. A sample size of 205 logistics firms was selected by applying the Slovin's formula along with simple random sampling, with managers of the firms serving as respondents. Primary data was utilized and obtained by structured, close-ended questionnaires. A pilot study of ten (10) logistic supervisors of the selected firms was utilized. Validity was conducted with construct and content validity, while reliability was conducted using Cronbach's Alpha internal consistency of 0.70. An approval letter was obtained from the National Commission for Science, Technology, and Innovation by the investigator, and drop and pick later approach was utilized. Descriptive and multi-linear regression analysis was employed with the utilization of SPSS 23.0. All ethical considerations were duly observed. Findings from the study disclosed that eco-design significantly and positively affected these firms' performance. The findings linked to the regression unveiled that green packaging positively affected the firm's performance significantly. Output noted that green warehousing revealed a significant positive effect on the performance of these firms. The outcome displayed that reverse logistics has a positive effect on the performance of these firms significantly. The study recommends that the management of these firms should adopt comprehensive green packaging strategies to enhance their performance. This should include the use of biodegradable, recyclable, and reusable materials, as well as optimizing packaging designs to minimize waste and reduce environmental impact. By implementing these practices, logistics firms can enhance their operational efficiency, reduce costs associated with waste management, and improve their overall market competitiveness.

Date: 2025-10-22
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Published in Asian Basic and Applied Research Journal, 2025, 7 (1), pp.556-569

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