Scrap metal dealers oppose export ban

By Ramadhan Rajab

Scrap metal dealers claim a proposed ban on exports of the commodity will only benefit one player, and should not be allowed.

Industrialisation minister, Henry Kosgey proposed the ban on scrap metal and used motor vehicle batteries on Wednesday .

Kosgey announced the plan after meeting a leading local battery maker, who claimed his factory was on the verge of closing down due to lack of raw material, which is being exported by scrap metal dealers.

But in a response, KISM Secretary General, Irshad Sumra, said the minister’s proposal allow manufacturers to dictate prices, to the vendors’ disadvantage.

Blocking Markets

"What the minister and the Associated Battery Manufacturers (ABM) are driving at is blocking the alternative markets, meaning suppliers won’t have alternative markets, and will be forced to dance to ABM’s music of poor prices," Sumra told The Standard.

He added that the proposed ban would push more than 800,000 people, who derive their livelihoods on scrap metals, out of business.

Sumra said the international markets have an attractive price offering Sh150 per kg of lead scraps, whereas ABM was offering Sh40 for the same.

On Wednesday, John Kinyanjui, the managing director of Associated Battery Manufacturers, said local manufacturers were subjected to unfair competition for lead (a heavy metal) by Asian countries, who are exporting the same from local export processing zones.

Kinyanjui said many countries had restricted exports of lead, creating a worldwide shortage, which has pushed up the cost of processing lead by 300 per cent, creating a huge demand for used batteries.

"We are not denying local manufacturers the supplies. All we want is better prices, and if this cannot be found in the region, we look for other attractive markets, since Kenya is a liberalised economy," Sumra said.

He called on the ministers of Finance, Trade and Industrialisation to meet stakeholders and listen to their concerns.

"We cannot allow livelihoods of our vendors to be stumbled upon. This is a scheme to end exports and dictate prices for the one market. All we need is market options for this sector to thrive as well," he said.