Unlicensed dealers face heavy fines as trade on scrap metal resumes  

By Mike Mulinge/Abdiaziz Mohamed

The govt has announced a gradual lifting of a moratorium placed on trade in scrap metal, spelling out hefty punishment for illegal dealings in the sector. 

Speaking to journalists at the NSSF building on Tuesday, 26 April 2022, Industrialisation, Trade and Enterprise Development the Cabinet Secretary Betty Maina said the order takes effect from May 2022 and that only those duly licensed will be allowed in the trade.

“All who have applied for licenses will be vetted by the multi-agency teams established and chaired by the County Commissioner in each county prior to the issuance of licenses,” said Maina.

Any person who undertakes the scrap metal trade without a license commits an offence and is liable for prosecution.

“For a first offender, a fine not exceeding Sh10 million or an imprisonment not exceeding three years or both, for a second offender, a fine not exceeding Sh20 million or an imprisonment not exceeding five years or both,” said the CS

Her Ministry, she added, has developed rules and regulations to guide the trade in consultation with relevant Government Ministries, Departments and stakeholders in the industry.

“The rules apply to collectors, agents, dealers, millers, smelters, transporters, steel fabricators, stockists of second-hand metal parts, motor vehicle salvage operators, electrical re-winders and local welding machines fabricators,” she said, adding that the rules have been reviewed by National Security Agencies and recommended for implementation.

The license is non-transferable and must be displayed conspicuously at the site while all recipients of scrap metal must maintain records of supplies and suppliers after verification of identity.

“Every licensed dealer shall comply with the prescribed hours of operation between half-past six o’clock in the morning and half-past six o’clock in the evening for the purposes of transporting scrap metal,” she said.

The driver of any vehicle transporting scrap metal dealer will also be required to produce a copy of the license of both the source and the recipient dealers.

President Uhuru Kenyatta banned exports and dealings in scrap metal on January 20, 2022, to curb high cases of vandalism, especially of electrical equipment, that had seen the country experience widespread power outages.

“We will no longer allow and we have a moratorium on the export or buying and selling of any scrap material until we have put in place proper guidelines that will ensure that the material is not coming from the hard material investments the people of Kenya have made,” The Head of State said during the graduation parade of police cadet officers in Nyeri.

He added that anyone found culpable would face treason charges as vandalism translates to economic sabotage.