NAIROBI, March 14 (Xinhua) -- Kenya's plastic industry recycling firm PETCO and Chinese manufacturing firm Hui Commercial EPZ K. Ltd. plan to sign a contract to promote recycling locally, officials said on Thursday.

Joyce Gachugi, country manager of PETCO Kenya told Xinhua in Nairobi that the agreement which will be signed before the end of March seeks to enhance Kenya's capacity to recycle plastic bottles.

"Under the agreement, PETCO will subsidize Hui so that it will purchase plastics from local collectors," Gachugi said on the sidelines of the fourth session of the UN Environment Assembly in Nairobi.

According to Gachugi, the subsidy model will be implemented in Kenya because it has proven to be a success in South Africa as it ensures that plastic collectors are paid enough to motivate them to recycle plastics.

Gachugi revealed they will collaborate with the Chinese firm because it has the ability to convert the plastic into pallets which are then used for the manufacture of fabric.

She added that Kenya's industries generate an estimated 20,000 tons of plastics every year out of which the country is only able to recycle 1,000 tons.

"With the agreement with Hui Commercial we hope to increase local plastic recycling capacity to at least 5,900 tons annually," she added.