A government move to merge over 40 state corporations and dissolve others is raising concerns about a potential increase in illegal activities, including theft of railway and Kenya Power metals.
As part of measures to enhance operational efficiency and eliminate redundancy, the Cabinet approved the merger of 42 state corporations into 20 parastatals and the dissolution of 16 State Corporations with outdated mandates.
This decision has sparked mixed reactions from various stakeholders, including the Scrap Metal Dealers Association who have urged the government to reconsider the move.
The Association argues that dissolving the Scrap Metal Council will lead to a rise in illegal activities, emphasising that the council has played a crucial role in regulating the industry.
Speaking during a press briefing in Nairobi, the Scrap Metal Dealers Association faulted the proposal saying that it will be a setback to the council's efforts in streamlining the scrap metal trade.
Among the Council's notable accomplishments is its crackdown on illegal scrap metal trade which had previously led to the vandalism of critical infrastructure including power lines and railway tracks.
The council also established licensing frameworks and encouraged formalisation within the sector benefitting small-scale traders and large businesses.
"Give us back the scrap metal council so that we can continue doing a better job with a better environment. This Industry is only growing because of the regulations the council has put in place, we don't want the illegal activities to come back," Evans Ng'ang'a Chairman, Scrap Metal Dealers Association said.
The stakeholders warn that dismantling the council could create a regulatory vacuum leading to a resurgence of illegal activities and harming the sector's reputation.
"Because of the council, we have seen 80 per cent growth in terms of numbers and compliance, and an increase in government revenue that is why we want to discuss the future of the council, not its dissolution," Ng'ang'a continued.
The council now plans to present a formal memorandum to the Ministry of Trade to protest the merger and dissolution. Kenya exports approximately 13,000 tonnes of scrap metal annually, contributing to Kenya's economy greatly.
The move by the government to dissolve and merge 40 entities came following an assessment done by the Ministry of Treasury on 271 State Corporations under the stewardship of Cabinet Secretary John Mbadi.
