97pc of scrap metal dealers in Kenya are illegal, CS Betty Maina says

Trade Cabinet Secretary (CS) Betty Maina says nearly all scrap metal dealers in Kenya are illegal.

Out of 4,011 operators, 3,900 (97 per cent) are illegal, while 91 (2.3 per cent) have their license applications pending.

Only 20 (0.5 per cent) are operating in the country legally, the CS revealed in a statement on Wednesday, March 16.

Maina said all scrap metal dealers in the country must seek fresh licensing. The non-compliant ones to remain locked out of trade indefinitely.

Interior Cabinet Secretary Fred Matiang’i said the government, through police, will ensure that no unlicensed scrap metal dealer is allowed to operate.

“We are not going to allow the sector to continue operating in 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,” he said after meeting stakeholders on Wednesday, March 16 alongside his Trade counterpart Betty Maina.

Attorney-General Kihara Kariuki said he won’t advise President Uhuru Kenyatta to lift the suspension of scrap metal business in Kenya until he (Kariuki) is convinced that there are regulations to govern the trade.

President Kenyatta placed the suspension on January 20, 2022 to avert further vandalism of State infrastructure. That happened after four high-voltage transmission lines tumbled down at Imara Daima, Nairobi in unclear circumstances, plunging many parts of the country into blackout.

“As long as I am the AG of this country, I will not advise the president to lift the moratorium until we have the regulations in place,” Kihara Kariuki said in the inter-ministerial meeting with stakeholders on Wednesday.

In the new licensing proposal, millers and smelters will pay an annual fee of Sh250,000, while agents will pay a yearly fee of Sh150,000. Juakali collectors will pay an annual fee of Sh50,000.

The dealers will also be expected to print and display their licenses on visible sections of their stalls.

They will also be required to keep receipts detailing the nature of the scrap metal, its source, previous use, the registration details of the vehicle and driver delivering the metal to the traders.

They will also be required to belong to a business member organisation, where they will only trade with licensed dealers when sourcing or selling their stock.