The proposed demands for lifting the ban of scrap metal trade in Kenya now require the dealers to apply for new operating licenses from the relevant Council.
“This is a step to ensure the proper regulation of the sector, especially because approximately 3,900 scrap metal dealers are operating illegally, with only 20 having licenses to deal in the trade,” said Trade CS Betty Maina.
Licensed dealers, millers, and smelters will be charged Ksh.250,000 in annual fees in the proposed regulations. At the same time, the amount for agents and Jua kali collectors will be 150,000 shilling and 50,000 shillings, respectively.
Among other things proposed include dealers displaying the name and license number of the business outside their facilities and keeping receipts detailing the nature of the scrap metal, its source, previous use, and the registration details of the vehicle and the driver delivering.
If you are a scrap metal dealer and have not been licensed or are thinking of venturing into the business, here are the types of licenses and how to apply for them.
There are two types of licenses under the Scrap Metal Dealers Act 2013:
- A Site License
A site license is issued by the local authority in whose scrap metal is situated. This license requires all of the sites where the licensee conducts a scrap metal business within the Local Authority area to be identified and a site manager named for each location.
- Collectors License
This allows a person to collect scrap metals (both commercial and domestic) in the issuing Local Authority area. However, this license does not permit a person to collect scrap metals from another local authority area. One will need a separate license from each local authority where they wish to collect the metals.
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Before Applying for a License, ensure you have the following documents in PDF for uploading:
- A Scrap Metal Dealers Association Membership Number and Certificate
- Business Registration certificate
- Business permit
- Plot Title or Lease Agreement
- Tax Compliance Certificate
- Director’s Details, i.e., KRA PIN and Certificate of Good Conduct
Since license registration is done online, after getting all the above Pre-Requisites, proceed to signup through the following procedure.
- Register an account
- Log In to your account
- Fill out the company profile
- Choose license type and apply
- Apply for consideration
- Payment Details will be sent via email. Pay and upload payment details.
- Download & Print Certificate.