ILLEGAL BUSINESS

Council moves to stop scrap metal smuggling

Those found exporting scrap metal illegally are liable to a fine of Sh10 million or a three-year jail term.

In Summary

• Scrap Metal Council chairman Francis Mugo said they will work closely with KRA and security officials to curb the vice at border points.

• He warned that anyone caught risks being arrested and their licenses revoked and that they will be fined Sh10 million fine and or a three-year jail term.

Lorry carrying dismantled car parts at Buruburu police station on January 13, 2022
Lorry carrying dismantled car parts at Buruburu police station on January 13, 2022
Image: DCI

Unscrupulous dealers smuggling scrap metal outside Kenya using the Lunga Lunga, Busia and Namanga borders have been put on notice.

Scrap Metal Council chairman Francis Mugo said they will work closely with KRA and security officials to curb the vice at border points.

He warned that anyone caught risks being arrested and their licenses revoked and that they will be fined Sh10 million fine and or a three-year jail term.

Under the Scrap Metal Act, those found exporting scrap metal illegally are liable to a fine of Sh10 million or a three-year jail term.

"We know there are people smuggling metal outside the country using our Lunga Lunga, Busia and Namanga borders. Be warned, we are coming for you and we shall revoke your licenses and you will face the law,"  Mugo said.

He was speaking in Mombasa after holding a sensitisation meeting with the Coast Scrap Metal Dealers Association.  They were sensitised on the issue of vandalism of government properties with the ministries of Energy and Transport facing the brunt.

Mugo said the council had written to the Inspector General of police on the issue of illegal dealings to share with them any information as they forge a working partnership to restore sanity in the scrap metal industry.

He said the country has 18 companies registered and licensed to mill recycled iron and combined, they annually recycle about 300 metric tonnes of scrap metal that could have been harmful to the environment.

"The iron is used as raw material to produce more iron. The ones which cannot be recycled locally, we issue licenses for them to be exported outside the country," Mugo said.

The government banned the export of scrap metals, however, some unscrupulous traders have been capitalising on the porous border points to smuggle the material.  

Statistics show that Kenya exported about 17,874 and 12,722 metric tonnes of scrap metals worth Sh5.9 billion and Sh4.5 billion in 2021 and 2022 respectively.

On the issue of vandalism meted out on government properties, Mugo said the council had already deployed officers on the ground to ensure that all scrap metal dealers are dully registered and licensed.

He said the council will roll out a registration exercise for all retailers as he called on all to register and those whose licenses have expired to renew them on time.

Mombasa for instance, has only 42 registered dealers, but the number might be high as some are operating illegally without licenses. 

On January 20, 2022, the government imposed a ban on scrap metal business following a surge in vandalism of critical national assets including power transformers.

The ban was however lifted in May after the government issued strict regulations that require licensed scrap metal dealers to transport their cargo between 6.30am and 6.30pm.

"Vandalism has been a serious issue for the government especially the ministries of Energy and Transport. That is why we are rolling out the registration exercise to ensure our dealers are regulated to fight vandalism," Mugo said.

Coast Scrap Metal Dealers Association chairman Dickson Kibuu lauded the government for aiding a conducive business environment.

He said the association will strive to educate members to do clean business.

"We were badly affected by the ban, but we thank the government for lifting the ban and enabling a conducive business environment. We are going to work together with the government to ensure we bring sanity to the industry," Kibuu said.

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