State urged to fast-track lifting of ban on export, dealings in scrap metal
By Jacktone Lawi, April 13, 2022Scrap metal operators have petitioned the government to fast-track the lifting of a ban imposed on the sector following rising cases of vandalism in the country.
Kenya Iron and Scrap Metal Association (KISMA) dealers say over 220 dealers have already registered as per the government directive with abou 400 expected to pay.
Irshad Sumra the Secretary-General of KISMA said manufacturers and scrap metal dealers are suffering and incurring huge losses as a result of the ban.
“We are also surprised that the Chairman of the Scrap Metal Council has not called for any meeting since we met CS Fred Matiangi who had shown positive signs of opening the scrap metal businesses after we agreed on regulations,” he added.
More than 1,000 scrap metal dealers held demonstrations outside government offices to submit petitions to Trade and Industry Cabinet Secretary Betty Maina and her Interior and National Coordination counterpart Fred Matiangi. The also petitioned Chairman of Trade Committee, National Assembly of Kenya.
Fresh licensing directive is among new regulations that have been proposed to control the sector, before the lifting of a ban on the trade of scrap metal. This is happening even as the construction sector continues to suffer from ballooning costs of construction materials, mostly steel despite a roadmap to ensure that ban on scrap metal is lifted. Steel is a product of scrap metal and the ban effected in January by President Uhuru Kenyatta led to a sudden rise in the cost of the commodity.
The government said before lifting the ban all scrap metal dealers will have to seek fresh licensing, as part of measures aimed at curbing runaway vandalism associated with the sector.
However, the dealers now say despite the efforts to draw a roadmap to the full resumption of the business by giving guidelines on lifting the January moratorium, nothing has materialised.
Schools reopen
Richard Muteti, the CEO for Jua Kali association said that in the steel sector they expected a change because as schools reopen with the current high prices of steel and metal raw materials school boxes will be very expensive.
Already Jua kali artisans in Nairobi and other major towns have already increased the prices of metal boxes by up to Sh500 per box as parents prepare to take their children to Form One.
“I’m sure that you will give this petition and appeal every consideration as most scrap dealers and manufacturers have taken loans from banks and very soon auctioneers will take over their vehicles and properties,” read the statement by KISMA
Contractors have also said that the high demand for steel has seen prices of construction metals shoot up by over 30 per cent. –