The State has announced plans to lift the ban it imposed on export and dealings in scrap metal in a move set to offer a sigh of relief to traders whose businesses closed since the directive in January.
On Wednesday, Interior Cabinet Secretary Fred Matiang’i said the ban will however be lifted only if scrap metal dealers apply for fresh licences and join associations before being allowed to ply the trade.
President Uhuru Kenyatta in January imposed a ban on exports and dealings in scrap metal, hitting hard traders who were operating in the sector, following the vandalism of transmission lines and critical road and rail infrastructure.
The president put a moratorium on the export or the buying or selling of any scrap material until proper guidelines are put in place to regulate the sector.
He said the moratorium will ensure that materials are not coming from the hard-won investments that the Kenyan people have made.
In the proposed regulations, Mr Matiang’i said that licensed dealers, millers, and smelters will be charged Sh250,000 in annual fees while agents and jua kali collectors will fork Sh150, 000 and Sh50, 000 respectively.
“We are not going to allow the sector to continue operating in an unlicensed manner and no amount of political intimidation or pressure will make us abandon the resolve. We are not building infrastructure for scrap metals vandals. We’d rather the scrap business died but we managed to protect our critical infrastructure.” Interior Cabinet Secretary Fred Matiang’i.
Dealers must prominently display the name and license number of their businesses outside their facilities and keep receipts detailing the nature of the scrap metal, its source, previous use and the registration details of the vehicle and the driver delivering it if it’s ferried to the premises.
They will also be required to belong to a Business Member Organisation (BMO) and obliged to ensure they only trade with licensed dealers when sourcing or selling their stock.
To transport scrap metal, dealers will have to carry a copy of their license and obtain a letter authorizing the vehicle to carry the load that must declare details of source and destination, type and quantity and name, ID and contact details of the driver.
If the Numerical Machining Complex is unable to absorb scrap metal disposed from a critical infrastructure, the regulations propose that the management of the infrastructure be required to engage a local smelter directly without involving a broker.
The Wednesday briefing meeting was also attended by the Inspector General of Police Hilary Mutyambai, and representatives from the Directorate of Criminal Intelligence (DCI), the Kenya Revenue Authority, Kenya Railways, road authorities, Kenya Association of Manufacturers and various scrap metal dealers’ associations.
Read also; NTSA to Register Afresh All Motor Vehicle & Motorcycle Dealers.
