Government to Lift Scrap Metal Ban from May 1st

By Jane Muia / Published April 27, 2022 | 11:57 am

KEY POINTS

Industrialization Cabinet Secretary Betty Maina on Tuesday said that upon resumption of the business, trading in scrap metal will be confined to only those who are duly licensed.

KEY TAKEAWAYS

Traders running the Scrap metal trade without licenses will be liable to a fine of up to 10 million shillings or three years imprisonment for the first-time offenders and up to 20 million shillings or five years imprisonment for second-time offenders.

The scrap metal trade will resume its operations come May 1^st, following the government’s move to lift the ban imposed in January.

Industrialization Cabinet Secretary Betty Maina on Tuesday said that upon resumption of the business, trading in scrap metal will be confined to only those who are duly licensed.

“All applications will be vetted by multi-agency teams in each county and chaired by the county commissioner before issuing licenses,” she said.

Traders running the Scrap metal trade without licenses will be liable to a fine of up to 10 million shillings or three years imprisonment for the first-time offenders and up to 20 million shillings or five years imprisonment for second-time offenders.

For transportation, licensed dealers will be required to carry a certified copy of their licenses and the recipient of the scrap metal on vehicles used for transit. Cargo transportation will only be allowed between 6.30 am and 6.30 pm to prevent scrap metal dealers from vandalizing public infrastructure and stealing private property.

In the new rules developed by the ministry of industrialization, licensed scrap dealers will be paid 250,000 shillings for over 5,000 kilograms of metal.

ALSO READ: Another Fuel Shortage Looms As Kenyans Prepare For A 5-Day Holiday

Despite the dealers’ complaints about the annual fee, licensed dealers, millers, and smelters will still be required to pay 250,000 shillings in yearly fees, agents 150,000 shillings, and jua kali collectors 50,000 shillings annually.

The government in January imposed an indefinite ban on trade in scrap metals trade following the vandalism of transmission lines in Kenya Power Company which led to a nationwide power outage.

These include theft and vandalism of road barriers, guardrails, utility infrastructure, conductors, cables, copper wife, railway gauge blocks and rails, transformers, and other materials.

Kenya Railways and Kenya Power have suffered the most, spending up to 3 billion shillings a year to replace vandalized materials.

The scrap metal trade has played a critical role in Kenya’s economy. The industry contributes more than 0.6 percent of Kenya’s exports and has created jobs for many Kenyans. Lifting the ban by the government will be a great move considering the importance of the sector.

It will also be a relief for traders who have been protesting and pleading with the government to re-open the business, following the high cost of living, which made many of them unable to provide for their families.

Most dealers in the sector are not licensed, making it hard for authorities to hold players accountable for losses in the country’s strategic investments.