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Crisis As Car Battery Manufacturers Risk Running Out Of Raw Materials

BY Soko Directory Team · March 9, 2020 10:03 am

Kenya is likely to witness a low supply of Lead batteries (car batteries) in the near future as manufacturers say they are running out of raw materials.

The battery manufacturers in Kenya say they might be forced to make some rash decisions in order to salvage their firms as the shortage crisis looms.

To manufacture a lead battery, the raw materials required are extracted from used batteries but the manufacturers say the supply has been low in recent days.

The Battery manufacturers have placed the blame on the unscrupulous traders who smuggle the scrap batteries to the neighboring countries.

The rogue traders are said to be smuggling scrap batteries to Uganda and Tanzania leaving the Kenyan manufacturers short of low materials.

Tanzania has five battery manufacturing and recycling plants while Uganda has four. The two countries are both eyeing for the same raw materials as the Kenyan manufactures thus posing a very stiff competition.

According to the Managing Director of the Associated Battery Manufacturers Guy Jack, the government should intensify security at the entry points to ensure that traders do not smuggle the raw materials out of the country.

“The used lead-acid batteries are finding their way to Uganda and Tanzania through porous borders where lead recovered is exported to the Far East for the manufacture of automotive and solar batteries,” Guy Jack said.

Guy Jack says Kenya loses 600 tons of scrap batteries due to illegal exports every month. Earlier the supplies were at 1600 tons but due to the illegal trading, the supplies dropped to 900 tons per month.

“Our collections were within the margin the Kenyan market can collect and recycle. However, supplies started dwindling from August 2019 to date with the supply going to as low as 900 tons of used batteries in December 2019,” he said.

Guy Jack said the battery shortage crisis might stretch the industry to the limit and in the end, some employees would be rendered jobless.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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