Illegal scrap metal dealers face heavy fines as govt. lifts ban

Scrap metal dealers who will engage in the trade without license stare at heavy penalties as state announces the lifting of ban imposed on the trade.

While making the announcement on Wednesday, Industrialization, Trade and Enterprise Development Cabinet Secretary Betty Maina said the lifting of the ban which is effective May 1, 2022 will only be allowed to duly registered and licensed dealers as illegal traders now face heavy fines.

“Any person undertaking scrap metal trade without a license commits an offence and is liable to fines ranging from Kshs. 10 million to Kshs. 20 million as part of tough measures aimed at regulating the sector. All licensed dealers must also register as members of a Business Member Organization,’ said CS Maina.

In January this year, President Uhuru Kenyatta announced a moratorium on scrap metal following wanton vandalism of key state infrastructure.

During the announcement of the moratorium, the government had suffered heavy losses as a result of vandalism of electricity transmission infrastructure, the Standard Gauge Railway and communication masts which were deemed economic sabotage by the President.

“The law is clear. These acts are nothing less than economic sabotage which fall under treasonable acts and the law is clear as to how we deal with treasonable acts. We will not allow you to destroy that which is for the growth and development of our country to benefit a few individual pockets,” said President Kenyatta.

According to the trade ministry, only 20 scrap metal dealers are officially licensed with 91 had applied for licensing.

However, more than 3,900 traders engaged in the trade are operating illegally.

There have been calls to lift the ban amid rising metal prices globally to meet local demand especially in the construction sector which has since a drastic increase in cost as a result of the shortage.

Under the new regulations, scrap metal dealers are required to get a license from the Scrap Metal Council.