Govt to lift scrap metal ban from May, dealers to pay upto Sh250,000 license fees

NAIROBI, Kenya, April 26 – The Government Tuesday said that the ban on scrap metal dealing which was imposed on January 20 will be lifted gradually lifted from May 1.

The ban was necessitated by increased vandalism of critical public infrastructure and utilities and stolen private property including transformers, transmission lines, rail, and road infrastructure.

The new regulations issued by the Cabinet Secretary Ministry of Industrialization, Trade, and Enterprise Development Betty Maina notes that only licensed businesses will be allowed to operate once the ban is lifted.

Licensed dealers, millers, and smelters will pay fees of sh250,000 for over 5,000kg of scrap metal, agents will pay sh150,000 for 5,000kg, collectors and jua kali will pay sh50,000 for 3,000kg.

Steel fabricator, motor vehicle salvage operators and stockists of second-hand motor spare, electrical, rewinders and local welding machines at sh50,000 for any amount of kgs.

Under the new roadmap, all those who have applied for licenses will be vetted by the multi-agency teams established in each county commissioner Prior to issuance of Licenses and there will be vetting for all fresh applicants for licensing.

“All persons dealing with scrap metal must apply for a license’s rule that applies to collectors, agents, Stuckists of second-hand metal parts, motor vehicle salvage operators, electrical rewinders, local welding machine fabricators. The multi-agency team should ensure all members exercise patience as the process is being undertaken” Maina listed.

She noted that any person who undertakes the scrap metal trade without a license commits an offense and risks paying a fine not exceeding 10 million shillings or imprisonment not exceeding 3 years or both.

She added that all recipients of scrap metals must maintain records of supplies and suppliers after verification of identity.

“Scrap from critical national infrastructure shall be disposed to the numerical machine complex and Kenya shipyard limited for smelting into billets. Every licensed dealer shall carry a certified copy of the license of the licensed dealer and the recipient of the scrap metal on any vehicle that is being used to transport any scrap metal.” Maina said.

Every member shall comply with prescribed hours of operation between half past 6 am to 6 pm for the purpose of transportation of scrap metal

The CS stated that the licensed dealer, miller, and smelter will pay fees of sh250,000 for over 5,000kg of scrap metal, agents will pay sh150,000 for 5,000kg, collector and jua kali will pay sh50,000 for 3,000kg and steel fabricator, motor vehicle salvage operators and stockists of second-hand motor spare, electrical, rewinders and local welding machines at sh50,000 for any amount of kgs.