The ban on scrap metal business will not be lifted any time soon, Trade and Industrialisation Cabinet Secretary Betty Maina said yesterday.

Maina, however, said the government is fast-tracking the operational guidelines aimed at streamlining the business after which the moratorium will be lifted.

She told a parliamentary committee that stakeholders both in the private and public sectors will be meeting next Tuesday for a meeting organized by the line ministries to look into the final document, which will later be presented to President Uhuru Kenyatta.

The CS said the need to streamline operations in the scrap metal trade was informed by the chaos and disorder in the industry forcing the President to issue the moratorium.” “For instance, despite the fact that the dealers know that they need to apply for licences, only 20 had been licensed,” Maina said when she appeared before the Trade, Industry and Co-operatives Committee to respond to a question by Dagoretti North MP John Kiarie who wanted to know when the ban will be lifted.

The CS said the country had over 700 individuals operating in scrap metal business but a majority were not willing to apply for the licence.

“Its only after the ban that people are now applying, we have about 98 who are waiting for their licences. We have to put this industry in order, why do people operate without a licence?” she posed.

President Uhuru banned exports and dealings in scrap metal, hitting hard traders currently operating in the sector.

Proper guidelines

Uhuru said that no dealer will be allowed to engage in the business until proper guidelines are put in place to regulate the sector.

“We will no longer allow, and we have put a moratorium on the export or the buying or selling of any scrap material until we have put in place proper guidelines that will ensure that material is not coming from the hard-won investments that the Kenyan people have made,” said Uhuru.

The ban has hit hard some industries dealing with scrap with the Associated Battery Manufacturers (ABM) saying it was on the verge of closing down due to lack of raw materials. “ABM, with a direct and indirect employee base of several thousand people, looks set to close shortly, due to lack of raw material if the President’s directive banning the export of scrap outside of Kenya, is not clarified correctly to local authorities,” Guy Jack, ABM’s chief executive said.

He said the recycling plant normally used to receive 2,000 tonnes per month of lead, sourced from used car and solar batteries which are collected and recycled back into pure lead. “But the plant has received next to nothing since the presidential directive was issued. ABM has invested well over Sh1 billion in the last three years, all riding on the back of secure raw material availability,” Guy said.

Kiarie had asked the ministry to explain what plans had been put in place to review old licences issued to the scrap metal dealers and exporters. In response, the CS said currently there was no one holding an export licence and that all licences expired and the exporter’s applications were being received.

Maina said fresh vetting was being undertaken by a multi-agency team for licensing. She said the moratorium issued by the President was part of government efforts to end the rising cases of vandalism.

“The aim of this moratorium was to enable the government to put in place adequate measures to effectively police the sourcing, trade and export of scrap metal,” she explained.

Maina said the dealers in scrap metal business will have to satisfy the government that they are not consumers of vandalised materials.