Scrap metal dealers warned against operating without a license

Kakamega, Wednesday, July 5, 2023

KNA by Moses Wekesa/Leah Mwalo

Scrap metal dealers who operate without a license risk being arrested, charged according to the Scrap Metals Act of 2015 and fined Sh10 million or serve seven years’ imprisonment

The Chief Executive Officer of The Scrap Metal Council Gideon Apiyo said the council issues eight categories of licenses to allow traders carry out their businesses without conflicting with the law.

The council provides license to steel millers, smelters, dealers, agents, collectors, people operating motor vehicle salvage, export and import license.

Speaking during a sensitization of scrap metal dealers in Kakamega, Apiyo noted that export and import licenses were considered special and were given for only six months.

“These licenses clearly indicate the type of metal a dealer wants to export and the quantity that is allowed to export per month for a total of six months,” he explained.

“We require metals for recycling value addition and that is why the kind of metal we allow you to take out of the country are those which we don’t have capacity to recycle, and that is why we also measure their quantities,” he added.

Some of the metals that are exported from Kenya are copper, aluminum, brass, zinc but the CEO says their exports are subject to restrictions if millers with capacity to recycle them in large quantities will set up plants locally.

He noted that Kenya does not allow export of scrap metals with large quantities of iron as they are recycled by companies like Tononoka, Devki among other local millers. Kenya has about 18 steel millers consuming around 300metric tons of scrap metals.

The CEO says that scrap metal contributes to the growth of Kenya’s economy giving an example that the country earned Sh 6 billion from export of 17, 874 metric tons of scrap metal in 2021 and Sh 5 billion from export of 12, 722 metric tons of scrap metals in 2022.

 “According to the latest Economic Survey report, one metric ton of scrap metal that was exported was sold at Sh350, 000. There is a shortage of scrap metal in the world and that is why the business is becoming lucrative,” he noted.

He said that what is consumed in the country is a paltry 4 per cent of the metals that the country exports, becoming a lucrative business for Kenyans provided they obtain licenses.

The CEO says due to high returns, dealers salivate to export aluminum and copper through dubious means ended up destroying transformers and other Kenya Power and Lighting Company (KPLC) to obtain those materials.

According to Kakamega KPLC manager Eunice Masese, one KPLC transformer goes for Sh500, 000. The transformers are imported.

The Manager said cases of vandalism have been common with vandals targeting transformers, transmission towers or pylons, braces and some parts from KPLC products to look for metals that they can sell.

“As they bring the transformers down, the network is disconnected so when the transformer is interfered with, the whole line goes off,” she noted.

She noted that Kakamega County has approximately 2060 transformers serving 140, 000 customers with a 55 per cent access rate of people with electricity in the county.

Masese said there is an opportunity to increase the number of electricity connections to many households but vandalism is denying the majority of unconnected customers as the company is forced to replace transformers instead of installing new ones.

The Manager said that the company supplies electricity through infrastructure of poles, conductors, transformers and cables and most of the infrastructure is within the community posing a challenge to the security of the infrastructure.

According to Kenya Power, those interested in scrap metals could obtain them through a tendering process that the company issues occasionally.

“We have a lot of scrap in our yards in Kakamega, Bungoma, Busia which are obtained through a tender. We have a lot until we lack storage space,” said the manager.

Kakamega County Commissioner John Ondego asked the scrap metal dealers to ensure they are licensed to understand which metals they are dealing with or else they will be arrested and prosecuted.

Courtesy ; K. N. A