INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue VI, June 2026  
Reverse Logistics, Regulatory Environment and Supply Chain Efficiency  
in Kenyas Remanufacturing Sector:AMetaAnalysis  
Brian wakasala1, Lydia Nyongesa2, Christine Osinde3  
supply chain management  
DOI: https://doi.org/10.51583/IJLTEMAS.2026.150600027  
Received: 14 June 2026; Accepted: 18 June 2026; Published: 02 July 2026  
ABSTRACT  
The paper undertakes a Meta-analysis on research done on the topic of reverse logistics and the effect it bears  
on the Kenyan remanufacturing sector, while considering the moderating effect of the regulatory environment  
as a result of limited adoption of the practice and studies undertaken on the area of interest. The study is pegged  
on the resource-based view that puts emphasis on the capabilities of the firms in reverse logistics and transport  
cost economics, which explains the challenges in governance of return networks. The paper reviews literature  
systematically through a meta-analysis methodology following the PRISMA guidelines, where articles are  
searched in prestigious academic databases. The research obtained 80 articles from SAGE, Science Direct, and  
Wiley between periods of 2020 and 2026. Duplicates and publications that were not based on reverse logistics,  
not empirically undertaken, and publications from predatory journals were eliminated, leaving 30 that were  
further subjected to the inclusion criteria, leaving 14 peer-reviewed articles whose empirical and theoretical  
findings were used to evaluate the effect of reverse logistics on the efficiency of Kenyans' remanufacturing  
supply chain. The study adopted the Hunter-Schmidt method to synthesize correlation coefficients from multiple  
studies. The findings of the study support the theoretical framework that links reverse logistics and supply chain  
efficiency in the remanufacturing sector on average (r=0.42) globally,  
in developed countries (r) =0.60, In  
Kenya, the r coefficient is below 0.42, showing a weak correlation, as infrastructure and the informal sector  
dominance, limits the adoption of reverse logistics from reaching its preferred potential. The moderation analysis  
determined that the regulatory environment, in terms of policy regulations and laws (average r of 0.51),  
moderates the relationship between reverse logistics and supply chain efficiency. The studies imply the existence  
of a need for the adoption of strategic regulations that target policy coherence, the incorporation of technology,  
and alignment of the stakeholders to enhance significant efficiency gains. The findings enrich and confirm the  
theoretical discourse on the manner in which the business environment interacts with the constructs of reverse  
logistics to drive efficiency in remanufacturing sector supply chains.  
Keywords: efficiency, reverse logistics, circular economy, remanufacturing, Regulatory environment  
INTRODUCTION  
The current manufacturing sector in Kenya has a significant emphasis on sustainable industrial practices, as it is  
responsible for significantly contributing to the country’s gross domestic product, as posited by Awino, (2025).  
The remanufacturing concept, specifically applied to the automotive, agricultural machinery, and electronics  
sectors, provides immense benefits economically and environmentally, although it is heavily dependent on the  
efficiency of reverse logistics. The Kenyan manufacturing sector has robust forward logistics that facilitate the  
industry's footprint across the country. However, the reverse logistics system is fragmented, limiting its  
efficiency. The remanufacturing sector is an appendage of the manufacturing sector, which plays a significant  
role in the growth of the country’s economy. The sector contributes at least 10% per annum to the gross domestic  
product. Performance of the manufacturing sector in Kenya has not been without drawbacks. The development  
and graduation of firms in the manufacturing sector have not grown to their full potential as a result of factors  
such as high cost of credit, high cost of raw materials, prohibitive legislation in environmental conservation for  
industries to meet ISO 14001 and ISO 9001 product quality standards, which limit their product quality and their  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
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efficiency. Moreover, the sector is fragmented with more than two thousand firms that are spread across broad  
subsectors.  
Both the global and local operational environments are faced with a challenge of managing their costs of  
operations, strict regulatory frameworks, economic recession, and stiff competition, along with significant levels  
of environmental degradation based on pollution and landfill rates. Firms are increasingly gaining prominence  
based on their ability to provide solutions based on the environmental sustainability initiative (Zarei & Shahab,  
2025). The rise of reverse logistics has been emboldened by customer awareness, as more customers are willing  
to consume products from companies that are environmentally conscious. Both the government and the private  
sector have become active drivers for the adoption of reverse logistics through the development of environmental  
laws, agreements, and policies, along with economic incentives that have resulted in the prominence of the  
practice as determined by Miao and Nduneseokwu (2025).  
The goal of sustainable development is to address environmental issues while responding to socio-economic  
implications. Firms across the world are feeling the pressure to implement green supply chain practices across  
their value creation systems. The pressure comes from environmental awareness from consumers and an increase  
in raw material prices, strict environmental legislation, and the effect of dominant actors in the value chain  
(Shabur, 2024). At the national level, the Kenya Vision 2030 emphasizes regulatory bodies, for instance, the  
National Environmental Management Authority (NEMA) for environmental conservation, along with EPP  
regulations such as ROHS, which is classified as the regulatory bans, permits, and standards, financial in terms  
of gains for reduction and adherence, and educational that is based on environmental reporting, audit, and product  
labelling (Kiraithe, Muthama Kaingu, & Mathiu, 2024). The study recognizes the regulatory environment as an  
essential determiner of value chain efficiency in reverse logistics, as it is identified to be the key moderator  
between the relationship between reverse logistics practices and supply chain efficiency. The most significant  
development is the introduction of the extended producer responsibility (EPR), which was introduced through  
the Sustainable Waste Management Act of 2022.  
Reverse logistics is structured around the management of returns, recovery, and recycling of products, which is  
important for remanufacturing as returns are processed as raw materials for the primary manufacturing process  
(Singh, Goel, Chauhan, & Singh, 2025). The reason for firms practicing reverse logistics differs from one firm  
to another. Reverse channel actors offer value-adding activities to their value chains in order to ensure technical  
and financial viability in the entire cycle. More than just reversing direct logistics chain streams, reverse logistics  
systems require restructuring of the value chain parts, properly managing transportation and storage in the  
reverse streams. In addition, possible establishments of new businesses and integrated administration of reverse,  
along with closed-loop supply networks, are guaranteed to guarantee efficiency and process effectiveness.  
Balancing the economic, environmental, and value chain performance is a significant factor for institutions to  
face competitive, societal, and regulatory pressure. In developed economies, the remanufacturing practices are  
more consolidated compared to the developing economies, where the concept is still in its infancy stage, as  
determined by Olonde, Oguge, and Kituku (2025).  
Problem statement  
Shifts in the market climate and the cost control measures adopted by various industrial firms have gone a long  
way in limiting value chain efficiency as they limit the value chain executive’s capacity to respond to market  
changes both locally and on the global market. Most companies are tied to their vendors more than their premium  
clients, as a direct link to their clientele is minimal despite manufacturing goods based on customers’ demand  
(Jalapathy & Unnissa, 2024). This paints a picture of how the manufacturing sector is operating on a less  
competitive pedestal, as inefficient management of their value chains has been a direct cause of their limited  
performance. Similarly, various sectors in the manufacturing industry have been experiencing low profitability  
ratios caused by scarcity in resources, accumulation of waste, prohibitive raw material costs, and waste across  
the value chain that is to be addressed by the adoption of reverse logistics (Ho, Haaker, & Yishake, 2025).  
Despite the emergence of reverse logistics and performance phenomenon, most organizations and researchers  
have not given it much attention, and among those that have given it, they dwell much on waste as opposed to  
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recycling, remanufacturing, or repair (Kamanga, 2024). As such, empirical literature is scarce in this area. While  
the role of transportation was underscored in enhancing reverse logistics, there is little empirical evidence  
concerning its characteristics in the process, apart from the observation that organizations in the developed  
economies opt to outsource this function to third-party logistics firms. The review also did not find enough  
empirical literature to support the storage aspects in reverse logistics, in spite of the fact that it has been variously  
cited as a key consideration in product reversals. Inventory management was singled out as crucial to the  
planning of reverse logistics; however, it emerged that this function has been largely ignored by firms and, hence,  
under-resourced. Previous studies have documented the effect of sustainable logistics practices on the  
performance of various individual sectors of the manufacturing industry, for instance, the food and beverage  
sector, the indigenous petroleum sector, the electronic sector, and the motor vehicle sector(Masese & Gatari,  
2025; Lumwaji, 2024; Mbago et al., 2025; Aming’a, Annan, & Marwanga, 2025). The studies, however, failed  
to fully characterize the role of inventory management, reverse transportation, and reverse storage in reverse  
supply chain logistics. Finally, with regard to legislation, there is unsatisfactory empirical evidence on the scope  
of laws affecting product reversal back into the supply chain, and, hence, this needs to be thoroughly investigated.  
Research hypothesis  
To realize the study objectives, the study aimed to test the hypothesis  
H01: There is no significant link between remanufacturing and supply chain efficiency in the Kenyan  
remanufacturing sector.  
H02: Regulatory environment does not moderate the relationship between reverse logistics and supply chain  
efficiency in the remanufacturing sector  
THEORETICAL REVIEW  
The study is grounded in transaction cost economics and the resource-based view. The resource-based view puts  
emphasis on the capabilities of the firms in reverse logistics, while transport cost economics explains the  
challenges in the governance of return networks.  
Resource-based view theory  
The theory is perceived by Penrose (1959) as a bundle of a firm's resources that are to be properly manipulated  
to enable organizations to achieve a competitive advantage over their competition. The theories' development  
has directed attention to the nature of resources and how they are positioned, enforcing barriers and economic  
drawbacks to their competition (Mailani, Hulu, Simamora, & Kesuma, 2024). The theory explains the unique  
deployment and combination of intangible and tangible resources that help the companies to realize a  
competitive advantage based on their capabilities that are immutable, adding significant value to the firm. The  
theory posits that for a firm to realize a competitive advantage, it must bear resources that are rare, immutable,  
non-substitutable, and of significant value. Malhotra, Dandotiya, Shaiwalini, Khan, and Homechaudhuri (2025)  
determine that resources that are rare, immutable, and imperfectly substitutable are the primary features of the  
resources that generate competitive advantage for the firm.  
On the contrary, Ogutu (2023) determines that the theory is structured around a network resource framework  
that advances its explanatory power in the value chain, as applications of RBV in value chain management are  
based on structural analysis and identifying the antecedents for competitive advantage across the value chain.  
To properly respond to challenges and uncertainties, firms have to develop inter-organizational arrangements to  
get around resource position barriers that are developed through collaboration.  
The theory is relevant as it supports remanufacturing frameworks that enable firms to find resources that are at  
the end of use from the consumer to add value to their supply chain and satisfy consumer needs based on the  
finite resources present in the market.  
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Transaction cost economies  
The transaction cost economies theory was developed by Ronald Coase (1937), where the concept was  
introduced by the use of market costing mechanisms that the proponent determined firms were to minimize.  
Subsequently, Oliver Williamson (2009) operationalized and refined the theory, developing it into a framework  
that focused on the make or buy decision along with transactional microanalysis. The theory explains as to why  
firms exist, their structures, and the choice to make rather than buy. The theory is based on tenets of governance  
structure where entities choose the most economic structure, focus on individual transactions rather than the  
entire industry, and asset specificity, where investments are made on specific transactions and cannot be  
repurposed easily (Vivona, Demircioglu, & Audretsch, 2023). The theory provides a framework for strategic  
decision-making and how to structure corporate governance for maximum efficiency. When it comes to  
corporate management, transaction cost theory centers on the notion that businesses should try to keep the costs  
of exchanges and transactions as low as possible (Thakkar & Agarwal, 2026).  
The "make-or-buy" choice is a key idea in Transaction Cost Theory as it relates to business management.  
Managers have to choose between buying finished and raw materials from outside vendors or producing them  
internally. The transaction costs of managing the process internally vs contracting and coordinating externally  
have an impact on this choice. Transaction Cost Theory guides corporate managers in determining the most  
efficient way to coordinate activities. If the transaction costs of coordinating externally are higher than  
coordinating internally, it may be more cost-effective to keep the activities in-house (Troisi & Alfano, 2023).  
Transaction Cost Theory highlights various governance structures for transaction management. Based on the  
costs involved, corporate managers can decide between market transactions, buying and selling in open markets,  
and hierarchical transactions, internal coordination within the organization.  
The theory is, however, criticized for its overreliance on make or buy decisions that overly simplify complex  
relationships between supply chain partners. In addition, the theory is static in nature as it does not provide an  
account for rapid dynamic change in technology and capabilities that may hamper the decision-making process  
over a period of time, as determined by Barzel and Allen (2023).  
The theory is relevant to the study because when working with outside partners, managers can create long-term  
contracts by applying the insights from Transaction Cost Theory. Using Transaction Cost Theory as a guide,  
corporate management creates mechanisms for monitoring and controlling transactions to lessen opportunistic  
behavior and information asymmetry. This is particularly relevant when dealing with external suppliers or  
partners. In the end, corporate management uses Transaction Cost Theory to achieve economic efficiency in  
decision-making and organizational structure. Managers improve the organization's overall effectiveness and  
competitiveness by reducing transaction costs (Syed, Mehmood, & Qaiser, 2023).  
Empirical Review  
Reverse transportation  
When a recall occurs, time is of the essence. Manufacturers must move as quickly as possible to remove affected  
products from the marketplace, but they also need to consider ways to minimize the cost of unaffected products  
being erroneously discarded from store shelves. Using a field retrieval force is an effective way of avoiding this  
unnecessary revenue hit while also ensuring that the recalled product is no longer available to consumers, as  
posited by Calignano and Mercurio (2023). Companies tap regional retrieval teams to physically visit affected  
locations and separate affected and non-affected products. Assembling and coordinating with field retrieval  
teams can be a time-intensive process, so it’s important that manufacturers factor this into their recall planning  
process (Adesoga et al., 2024). Among the key factors to consider in the field retrieval process is transportation.  
Transport system makes goods and products movable and provides timely and regional efficacy to promote  
value-added under the principle of least cost. Transport affects the results of logistics activities and, of course, it  
influences production and sales. In the logistics system, transportation cost could be regarded as a restriction of  
the objective market (Khomaziuk & Gerasymchuk, 2024). The value of transportation varies with different  
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industries. For those products with small volume, low weight, and high value, transportation cost simply  
occupies a very small part of sales and is less regarded; for those big, heavy, and low-valued products,  
transportation occupies a very big part of sales and affects profits more, and therefore it is more regarded  
(Macedo et al., 2025)  
According to Mandal and Mohammed (2024), the demand for transport in reverse logistics brings out a new  
market for the third-party logistics industries, as most companies have their transport systems built for forward  
logistics. The reverse transport frameworks are not handled by the firms internally as support functions; for  
instance, transportation, distribution, warehousing, inventory management, order processing, and material  
handling have been given low priority compared with the other business functions (Li et al., 2023). However,  
the need for developing sustainable competitive advantage, the growing emphasis on providing good customer  
service effectively and efficiently, and the strategic value of focusing on core businesses and re-engineering  
resulted in the evolution of contract logistics, which is very different from traditional logistics.  
One of the most important reasons for outsourcing is that the capabilities of the providers to support their clients  
with the expertise and experience that otherwise would be difficult to acquire or costly to have in-house. These  
outsource suppliers have become specialists in managing the reverse flow and performing key value-added  
services, such as remanufacturing and refurbishing (Baglio, Colicchia, Creazza, & Dallari, 2025). In addition,  
often the outsourced suppliers perform reverse activities in an improved manner, and their customers often find  
outsourcing to be a way of reducing their administrative hassle. Third-party logistics service provides another  
option for small to medium-sized companies to have their reverse logistics system. However, most of it is not  
straightforward as the third-party firm treats the collection as forward logistics and, hence, may demand high  
costs of transportation. Therefore, being a cost-sensitive endeavor, third-party firms have developed systems that  
enable them to routinely collect the products as was ascertained by Andrejić and Pajić (2024).  
Reverse Storage  
Storage requirements are a major consideration in reverse logistics. It’s not uncommon for regulatory bodies to  
mandate that a company keep recalled products in quarantine for a period of time so that they can be inspected.  
Litigation or other activities associated with the recall could add additional storage requirements to industry  
players. In light of this, companies must plan to devote warehouse space to house the recalled product or work  
with a recall execution partners to handle product retrieval, storage, and ultimate remanufacture. With the  
development of reverse logistics, its operation process is getting more and more complex (Attari, Ala, Ahmadi,  
& Jami, 2024)  
Production planning and control systems are developed for traditional production processes, which are not  
characterized by a cyclical material flow. The role of recycling activities has increased because of the decreasing  
amount of raw materials and the rise in storage prices, which have economic and ecological causes. Strong social  
pressure and increasing governmental regulations are the principal causes of significant drawbacks in the  
remanufacturing value chain, according to Li et al. (2023). Material flow extended with recycling processes  
involves storage of raw materials, semi-finished products, end-products, and recycling products. Uncertainty of  
wastes and returned products in time, quality, and quantity, and uncertainty of the duration of the reuse process  
make the recycling planning process uncertain. So the planning becomes a more complex problem, and there are  
a number of decision variables in the decision-making. The first situation is a decision about disassembly, reuse,  
and use processes. A second relevant decision is in the field of manufacturing and purchasing, such asch as the  
substitution between recycled and newly procured products and materials, as an alternative possibility of material  
supply. From this context, it is clear that an integration of production and recycling planning is necessary (Tang  
& Thelkar, 2023).  
However, according to Thibbotuwawa et al., (2023), the uncertainty problems can be cleared by the calculation  
of product requirements and of returned recycling products. In general, the storage of all products can be solved,  
and there is a choice between manufacturing, waste disposal, and recycling products. Ordering restricted  
strategies is characterized by three storage dispositions: storage restriction in traditional production, restriction  
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on recycling, and restriction on waste disposal in a landfill site. If the storage of recycling products is not  
possible, then restriction of recycling and waste disposal is in keeping with this fact.  
2.3.3 Reverse inventories  
Product returns happen, making it important to maintain efficient flow and handling of customer returned  
merchandise. However, many operations totally lose control of this inventory. If the merchandise that comes  
back into stock is not controlled properly and then acted upon, it just sits (Qin, 2022). The storage and excess  
inventory costs, plus the loss of vendor credits, are costly. But reclaiming assets through reverse logistics can be  
challenging. Companies willing to undertake reverse logistics flows face many hurdles, including policies  
regulating the transport of waste as well as the variability, in quality and quantity, of return flows. However, the  
cost of reverse logistics is by far the biggest challenge because it undermines the business case for the circular  
economy (Wadhawan & Rizvi, 2025). The cost of reverse flows is usually high, while, in comparison, the  
residual value of goods is usually low. The collection of goods is often expensive due to geographic dispersion.  
Transport cannot be fully efficient due to a lack of scale. Sorting is often expensive without local infrastructures.  
Yet the cost challenge, like most other hurdles, can be overcome.  
Inventory management is an important part of making all the decisions in handling the inventory in an  
organization. Forkan, Rizvi, and Chowdhury (2022) determined that an effective inventory management system  
will reduce the level of difficulties of operations, which can lead to the success of an organization, such as  
executing, administrating and scheduling of distribution and shipping network. Thus, improving the inventory  
management of an organization will greatly enhance the quality of the outcome of business performance. In  
other words, the goal of inventory management is to make sure of the availability of resources in an organization.  
Chekoubi, Trabelsi, Sauer, and Majdouline (2022) indicated that discrepancy is the greatest problem with annual  
inventory records. Stocktaking is used to determine the actual quantity of inventory kept in the storage and the  
record of inventory. According to Jain et al., (2023), the discrepancy of important inventory should not be more  
than 0.2%, while other inventory discrepancies are not allowed to be more than 1% in inventory levels.  
According to Tang and Thelkar (2023), it has also been proven that the discrepancy of inventory will harm the  
competitiveness and also the profitability of the organization.  
Inventory record inaccuracy is one of the unsolved problems faced by the manufacturing organization and brings  
a powerful side effect on the performance of an organization, for example, rescheduling the operation of the  
operation schedule, generating the loss of sales, delay penalty, suboptimal planning, and extra expenses for using  
the transport vehicles. As stated by Richter and Dobos (2024), most of the organizations recruit unqualified  
employees to deal with their inventory. Normally, these employees lack familiarity, have insufficient training,  
or lack attention in their jobs. These situations will result in the disruption of the operation process of an  
organization, such as spending a lot of time tracking down the stock that has been put in the wrong place or has  
an incorrect inventory record. Therefore, qualified employees and proper management of inventory are necessary  
for the performance of the manufacturing organization.  
METHODOLOGY  
The study is guided by PRISMA guidelines that enable systematic review and meta-analysis. The quantitative  
studies were synthesized to derive the thematic insights and effect sizes.  
Inclusion/exclusion criteria  
Studied included were determined to be theoretical and empirical on reverse logistics and remanufacturing in  
Kenya, undertaken between 2020 and 2026 from peer-reviewed literature and credible industry sources. Studies  
that were not focusing on Kenya as a primary focus were based on forward logistics, and studies with inefficient  
methodology were excluded.  
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Databases such as Scopus, JSTOR, and Google Scholar were the backbone of the search with keywords Kenyan  
reverse logistics, remanufacturing, and efficiency, and Kenya’s circular economy, yielding 100 documents with  
30 meeting requirements of the inclusion criteria as shown in Table 3.1 below.  
Table3. 1: Inclusion and Exclusion Criteria  
Inclusion criteria  
Exclusion criteria  
Online publication  
Physical publication  
Paper empirically researched  
Paper peer-reviewed  
Non- empirical research  
Non-peer-reviewed publication  
Paper published before 2020  
Paper published between 2020 and 20206  
Data Extraction and Analysis  
The meta-analysis is based on the collection, analysis, and subsequent synthesis of the available existing  
research, both qualitative and quantitative, along with their findings as posited by Flemming and Noyes (2021).  
The methodology is structured around gathering textual information, interpretation of patterns, and trends that  
summarize the available knowledge comprehensively. It is designed to offer a comprehensive examination of  
reverse logistics practices, regulatory environment, and supply chain efficiency in the remanufacturing sector,  
from 2020 to 2026, because of their relevance in policies instituted by the state, industry trends, and innovations  
adopted by key industry players that shape the operations of the industry. The synthesis was rigorous,  
comprehensive, and incorporated publications that were relevant, enabling the selection and analysis of the  
studies that addressed the research objectives.  
Studies that met the inclusion criteria were independently analyzed to retrieve relevant information supporting  
the study objectives. The studies were classified based on their essential features as illustrated in Table 3.2 below.  
Table3. 2: Study Classification Criteria  
Criteria  
Variable sought  
Study classification  
Publication year  
Study respondents  
Methodology  
Location of the study  
Limitations of the study  
Theoretical underpinning  
Themes of reverse logistics  
Regulatory environment themes  
FINDINGS of the study  
Out of the thirty publications that met the inclusion criteria, only 14 quantitative studies were anchored on  
organizational theories that offered theoretical backgrounds, focused on manufacturing and remanufacturing  
industry frameworks, reverse logistics themes in the manufacturing and logistics industries, and the regulatory  
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environment's effect on the performance of the industries. As a result, the effect sizes for correlation coefficients  
were obtained from the 14 quantitative studies.  
Descriptive Statistics  
The study adopted the Hunter-Schmidt method to synthesize correlation coefficients from multiple studies. The  
method calculates a weighted average of Pearson’s correlation (r) using sample sizes as weights. Correlation  
coefficient (r) from the synthesis is as detailed in Table 3.3 below  
Table3. 3: Correlation coefficient table  
Context  
Effect size (r)  
0.42  
interpretation  
Moderately positive  
Strong positive  
moderate  
Average globally  
Developed word  
0.60  
Kenya (developing economy)  
Policy studies beyond 2020  
<0.42  
0.52  
Strong positive  
The sample weighted mean effect (r=0.42) at 95% confidence interval shows a moderate positive effect of  
reverse logistics on supply chain efficiency. This illustrates that reverse logistics universally enhances supply  
chain efficiency positively, although the effect is not uniformly felt across the remanufacturing activities.  
Similarly, in the developed countries, r=0.60 shows it has a strong positive correlation, as mature economies that  
have developed infrastructure, reverse logistics is an optimization tool for high performance. In Kenya, the R-  
squared coefficient is below 0.42, showing a weak correlation, as infrastructure and the informal sector  
dominance in the industry drag their performance, limiting the adoption of reverse logistics from reaching its  
preferred potential. In studies on regulatory policies instituted post 2020, the findings indicate an (r) of 0.52,  
illustrating a strong positive correlation, as good regulatory frameworks do mitigate the constraints and enhance  
the effectiveness of reverse logistics in the industry. The findings are consistent with Mbago et al., (2025):  
Razia, Awwad, Ruzieh A (2025); Oguntegbe, Paola, and Vona, (2025) that emphasize product returns and  
product remanufacture have a significant positive influence on customer perception among the industry and also  
noted that most establishments have not put up arrangements and frameworks that aid in handling collection of  
product returns, remanufacturing and how to handle green supply chain aspects.  
A study on the review of logistics practices and their effect on supply chain sustainability in 2024 by Chatzoudes,  
Kadłubek, and Maditinos (2024) determined that effective reverse logistics yield to effective cost savings  
through reclaiming value from the returned products, optimizing the use of resources, thereby enhancing  
operational efficiency. Economically, reverse logistics provides a leeway for extracting substantial value from  
returned products, reducing costs of production, and meeting the demand for customers requiring sustainable  
products. Socially, reverse logistics helps in job creation, refurbishing, remanufacturing, promoting economic  
growth, and the development of the community.  
Findings show a high heterogeneity (I2=78%), which suggests contextual variability. The high heterogeneity  
illustrates that managers should not apply the generic reverse logistics strategies blindly, as there is no benefit  
of one size fits all. This is confirmed by the complexities of reverse logistics, especially in the management of  
intricate strategic companies facing complexity in alliance with supply chain partners in the management of  
knowledge, and sharing risks. There is a need for the development of multi-criteria decision-making  
methodologies that make recommendations for companies faced with complexity in the management of supply  
chain partners, as was determined by Hesami (2025)  
On sector distribution, the automotive sector had 40%, the electronics industry 35%, whereas the machinery  
industry had 25%. The automotive sector is dominant as a result of it being the oldest and most regulated system  
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of remanufacturing, as the sector is driven by a formal, policy-compliant economy framework in Kenya. The  
electronic industry is most visible in the period beyond 2020 as a result of e-waste regulations that the country  
targets in its EPR regulatory framework and the high number of studies in this sector is as a result of the sensitive  
of the industry to the new set of regulations (Srivastava et al., 2025; Mbutura, 2025; Karim, Newaz, & Appolloni,  
2025). The machinery industry bears the lowest percentage compared to the rest, as it involves industrial  
equipment that is often heavy, and the effect is lower because of small volumes, and returns are often business-  
to-business handled directly through contracts rather than take-back schemes from customers.  
Moderator analysis  
Policy discussion studies post 2020 show a high effect size (r=0.52). This illustrates the correlation that  
regulatory frameworks have on supply chain efficiency caused by reverse logistics strategies adopted in the  
industry across various sectors. The post 2020 policy framework in Kenya has been designed by the government  
to bridge the infrastructural and sectoral gap in enforcing reverse logistics practices and streamlining the practice  
applicability to all industry sectors. The most significant development is the introduction of the extended  
producer responsibility (EPR), which was introduced through the Sustainable Waste Management Act of 2022.  
The producers comply through individually or collectively joining a producer responsibility organization, for  
instance, the electronics waste producer responsibility organization of Kenya (EPROK), which coordinates the  
transport, collectors, and recycling of the mainstream e-waste value chain. Through pooling of resources, the  
industry players, both big and small, can access formal collection networks, making sure there is a steady flow  
of end-of-life products into the remanufacturing ecosystem to realize efficiency gains in policy-rich frameworks.  
These findings are in line with Hosain and Mustafi (2025); Tetteh, Kwateng, Tukue, and Mensah (2025), who  
ascertained that reverse logistics practices enhance the environmental, social, and economic dimensions of  
sustainable performance, with the regulatory pressure playing a significant role. The findings emphasize the  
importance of reverse logistics and supply chain efficiency, encouraging their adoption  
DISCUSSION  
Reverse logistics has brought to light the role of manufacturing firms as significant players in remanufacturing  
returns from customers in the market. The results from the study support the adoption of reverse logistics  
practices in the remanufacturing value chain, as it emphasizes the adoption of reverse storage, reverse  
documentation, and reverse transportation in remanufacturing that enhance efficiency.  
Transport system makes goods and products movable and provides timely and regional efficacy to promote  
value-added under the principle of least cost. Transport affects the results of logistics activities, production, and  
sales. Macedo et al., (2025) identified many reasons for companies to outsource reverse logistics activities, for  
instance, 3PLs are expected to have sophisticated information system capabilities, state-of-the-art transportation  
and material handling equipment, and warehousing facilities to offer complete reverse supply chain solutions.  
As a result, reverse logistics may not be the core activities of a company. Inefficiency may creep in if it is looked  
upon as a secondary activity. By outsourcing reverse logistics, companies may focus on their core competencies.  
Faced with the mounting costs of managing product returns, many third-party logistics providers have begun to  
consider mapping the process of reverse logistics involving product returns and creating opportunities for cost  
savings and service improvements. Thus, 3PLs that offer value-added services such as repair, remanufacturing,  
repackaging, and relabeling were overwhelmed by the scope and complexity of repairing and sending returned  
products back to their distributors or end-customers. To be successful, 3PRLP need to satisfy their customers,  
maximize asset recovery, maximize returns processing speed, minimize processing costs, minimize inventory  
levels, and monitor costs as determined by Mandal, and Mohammed (2024).  
Inventory record inaccuracy is one of the unsolved problems faced by the manufacturing organization and has a  
powerful side effect on the performance of an organization. As stated by Benmebarek, Hami, and Hashim (2025),  
most of the organizations recruit unqualified employees to deal with their inventory. Normally, these employees  
lack familiarity, have insufficient training, or lack attention in their job. These situations will result in the  
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disruption of the operation process of an organization, such as spending a lot of time tracking down the stock  
that has been put in the wrong place or has an incorrect inventory record. Commercial returns occur in a  
wholesaler-retailer or in a retailer-customer setting, where the buyer has a right to return the product, usually  
within a certain period. The reason behind the return option differs between the cases. In the first setting, the  
retailer faces the problem of how much he might sell, and giving him a buy-back option lowers this risk for him.  
The returns are likely to be in bulk at the end of the season. In the second case, the reason for the return option  
is that the buyer might not be sure whether the product really meets his/her requirements.  
Up-to-date documentation and records are an essential part of successful recall execution. In addition to warranty  
and customer loyalty databases, there are a number of other records manufacturers must maintain in order to  
efficiently manage a recall. Having access to quality control records by product line and production run can help  
manufacturers better determine the scope of the event and devise a targeted corrective action plan (Khan & Khan,  
2026). Accurate, in-depth distribution records are essential for companies to track the extent of the recall and  
coordinate with distributors and other stakeholders. Not only does this information help manufacturers execute  
a recall as efficiently as possible, but it also enables companies to ensure regulatory compliance. Government  
agencies expect organizations to maintain complete and accurate records on their product safety efforts and will  
want to review this documentation before allowing a company to close out a recall. As such, manufacturers that  
take time to consider all elements of recall documentation and incorporate them into their recall plans are the  
best primed for success (Kumar, Vipin, & Sridharan, 2026).  
To maximize the competitiveness of the logistics services market, a very important aspect of the decision is not  
only the location of the warehouse in the supply chain, but also the decision of a possible outsourcing of  
warehouse space. Analysis of supply chain efficiency in terms of warehousing allows for the optimal location  
of warehouses, which has a direct impact on delivery times and customer service level (Singh, Gaur, Singh, &  
Padiyar, 2025). In the scientific studies of logistics management, a lot of factors can be found -the processes and  
resources that affect the whole warehouse process. It is therefore clear that the warehouse management should  
focus on ways to improve the efficiency of processes, both internal and external supply chain, and continuous  
monitoring and evaluation of the results. Simultaneous consideration of the use of warehouse space outsourcing  
may also affect: logistics cost savings, as well as attractive pricing services offered by the entire supply chain,  
and increase the flexibility of the entire supply chain, due to the possibility of manipulation of the available  
warehouse infrastructure.  
Kenya does not have a comprehensive policy that is pegged singularly on reverse logistics and the  
remanufacturing framework to date; instead, there exist practices that separately support waste management,  
manufacturing regulation, and environmental conservation driven by the state. Key among the regulations is the  
guidelines enforced by the National Environment Management Agency that enforce waste segregation,  
recycling, and impose penalties for non-compliance. Similarly, the Public Procurement and Disposal Act  
regulations promote green procurement that encourages reverse logistics in public mainstream supply chains for  
sustainable recovery and disposal (Tetteh, Kwateng, Tukue, & Mensah, 2025). The Environmental Management  
and Coordination Act mandates extended producer responsibility (EPR) to manage waste, providing a  
framework for manufacturers to handle end-of-life for products through reuse, recycling, and remanufacturing  
to reduce landfill waste. The Kenyan food and beverage industry, along with state-owned manufacturing firms  
have shown increased adoption of reverse logistics, although at a moderate level. The state has tried to influence  
the adoption of the practice through subsidies aimed at boosting performance, although they do not always  
correlate with a positive outcome in the performance of an entity.  
The study supports the theoretical framework linking reverse logistics and supply chain efficiency in the  
remanufacturing sector. The moderation effect is brought to light as the regulations affect the relationship  
between reverse logistics and efficiency in the remanufacturing value chain.  
Implications of the study  
The study explored the relationship between reverse logistics, regulatory environment, and efficiency of the  
remanufacturing industry value chain in Kenya in a bid to determine the compounding effect the practice bears  
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across all the manufacturing sectors. The study is pegged on the resource-based view that demonstrated the need  
for firms to develop resources that enable the flow of materials from end of use back to the mainstream  
manufacturing process for rework and value addition in line with stipulated regulations governing the practice.  
This underscored the need for legal adherence to set policy guidelines to enable firms to get legitimacy in the  
market and integrate reverse logistics across their distribution networks. Further, the paper is grounded in  
transactional cost economies that drive the need to minimize all transactional costs to better manage the  
organization's investment in its operations to generate better value for money.  
Supply chain efficiency is a key metric as it looks into the effective minimum utilization of a firm's resources to  
achieve its objectives. Managers are encouraged to adopt practices such as reverse logistics that reduce the  
utilization of company resources in obtaining raw materials, as returnable from customers in the market are a  
viable option for value addition to develop a manufactured product fit for purpose.  
LIMITATIONS OF THE STUDY  
The study acknowledges the existence of publication bias despite the adoption of rigorous research strategies  
that were used to incorporate published studies. In addition, temporal bias is present as the study relied on  
publications from 2020 to 2026, excluding ongoing studies, as studies taken prior to the research period that bear  
an outstanding effect on the study subject. Further, researcher bias is also present as the systematic process of  
review for meta-analysis is subjective in several stages, such as data synthesis.  
CONCLUSION AND RECOMMENDATIONS  
The study confirms that reverse logistics bears a significant effect on supply chain efficiency in Kenya’s  
remanufacturing sector, but the effect is affected by regulatory and infrastructural factors. There is a need for the  
adoption of strategic regulations that target policy coherence, the incorporation of technology, and alignment of  
the stakeholders to enhance significant efficiency gains.  
As the nation is in pursuit of sustainable economic goals, the integration of reverse logistics systems will be  
central to enabling sustainable industrial growth. The post 2020 policy increase in Kenya provides strong  
evidence that the government has set a legal foundation through the enactment of the Sustainable Waste  
Management Act and EPR regulations that are necessary for an efficient reverse logistics network. The state  
must move from policy enactment to enforcement, resolution of legal constraints around EPR regulation, and  
integrating the informal collectors into the mainstream returns network to enable reverse logistics in the country,  
converging with the global policy-driven framework. The EPR regulations gazette in 2024 has had its  
implementation delayed through the court processes. This, compounded with the realization that more than 80%  
of the e-waste collection is being handled by the informal sector, paints a picture of a slow transition as the  
informal sector is not integrated into remanufacturing facilities that suffer through limited returnables, limiting  
supply chain efficiency.  
There is a need to incentivize and formalize sector integration through training and licensing, implement  
extended producer responsibility regulations that bear clear reverse logistics targets, and invest in reverse  
logistics infrastructure in terms of the collection centers in industrial hubs.  
To enable return flow visibility, there is a need to incorporate digital tracking across the supply chain and develop  
cross-sector reverse logistics cooperatives to enable the sharing of costs and expertise. Further, there is a need  
to enable the promotion of green marketing to develop consumer acceptance of goods that have been  
remanufactured.  
There is a need for longitudinal studies on the efficiency of reverse logistics metrics and exploration of behavioral  
factors that affect the rate of returns, which compares findings across East Africa.  
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