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Scrap metal regulator raises concerns over industry malpractices

Say illegal trade depletes local industries of essential raw materials.

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by JULIUS OTIENO

Realtime09 November 2024 - 11:00
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In Summary


  • "The Council is confident that these changes will further strengthen industry integrity and support Kenya’s economic growth,” Mugo said.
  • He added that for this to succeed, the Council emphasizes the need for collaborative action among all stakeholders in the industry.

Scrap metal dealers weigh metal salvaged from a demolished building/ File

The scrap metal regulator has raised concerns over rising cases of malpractice within the industry as many dealers disregard the established regulations.

The Scrap Metal Council said that lack of compliance is impacting not only the industry’s integrity but also the country’s industrial growth.

The most hit sector is the battery industry which has been struggling for scrap batteries which is the key raw material, following the rising incidents of smuggling to neighbouring countries.

The agency chairman Francis Mugo said that despite a legal prohibition on exporting scrap metal, smuggling activities have intensified, with scrap batteries frequently transported to Tanzania and scrap steel to Uganda.

“This illegal trade depletes local industries of essential raw materials, hindering production and economic development. The Scrap Metal Council is firmly committed to ending these unlawful activities to support Kenya’s industrial advancement,” Mugo said.

Speaking to the Star, Mugo said that the Council was actively working with Parliament to expedite the passage of amendments to the Scrap Metal Act currently before Parliament.

“These amendments are aimed at closing loopholes in the 2015 Act, thus providing a more robust legal framework for the sector. The Council is confident that these changes will further strengthen industry integrity and support Kenya’s economic growth,” Mugo said.

He added that for this to succeed, the Council emphasises the need for collaborative action among all stakeholders in the industry.

The council has also raised concerns over some government agencies which were involved in illegal disposal of scrap materials.

“In some cases, even government agencies have been found disposing of scrap metal without following the Council’s guidelines.

Such actions inadvertently contribute to infrastructure vandalism, as contractors with these disposal permits may engage in further illegal scrap collection under the guise of these documents,” he warned.

He said that moving forward, the Council will insist that both government entities and private bodies adhere strictly to disposal regulations to prevent any misuse.

Mugo took issue with a leading scrap deal in the country whom he accused of operating with impunity exporting scrap metal in total disregard of the existing law.

“Earlier this week, the Council faced a concerning situation where a scrap metal dealer, Kangethe Logistics Limited, was intercepted transporting scrap within the Voi area without the necessary documentation."

"Despite clear evidence of non-compliance and suspicion that the consignment was bound for Tanzania, the dealer was allowed to proceed,” Mugo lamented.

He revealed that he will be meeting with the Inspector General of Police, who has shown strong support, to address challenges in enforcing the law and to reinforce the Council’s regulatory mandate.

The council chairperson said his office was aware of complaints from scrap dealers regarding alleged harassment by Kenya Power’s Directorate of Criminal Investigations officers.

“Dealers have reported to us that significant quantities of scrap copper are seized under claims that they were sourced from vandalized infrastructure, despite documentation verifying legal origins,” he noted.

Mugo said the Council has already written to the Kenya Power MD, requesting that all detained scrap copper, where investigations are complete, be returned to legitimate dealers to avoid unjust disruption to their businesses.

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