The Associated Battery Manufacturers (ABM) company is set to close one of its factories following President Uhuru Kenyatta's ban on scrap metal dealership in the country.
While speaking to the media on Sunday, February 6, ABM Chief Executive Officer (CEO), Guy Jack, revealed that they would close their Ksh1 billion recycling plant in Athi River citing a lack of raw materials in the market.
He explained that the company relies on scrap metals that are recycled to lead that is then used in the manufacture of batteries.
Additionally, Jack disclosed that the closure of the company would affect Kenyans who are employed at the factory and have invested over Ksh1 Billion into the factory over the years.
The CEO also claimed that there was no clarity over Uhuru's directive further calling on the Head of State to reconsider his decision.
“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 metal outside of Kenya, is not clarified correctly to local authorities.
“What has happened is local authorities, city councils, and police have incorrectly interpreted the export ban, and assumed it applies to local movement, which it does not,” he stated.
Jack revealed that the factory uses over 2000 tonnes of lead mostly from scrap metal of wrecked cars.
While officiating the pass out parade of police at the National Police College in Kiganjo, Nyeri County, on January 19, Uhuru banned the export and dealership of scrap metal after the vandalism of Kenya Power and Lighting Company (KPLC) power lines which caused nationwide blackouts in most parts of the country.
“As of today, 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.
“We have seen vandalism of different signboards and towers of our transmission lines. We have also seen clear cases of sabotage as was the case in Naivasha where people intentionally unbolted some of our transmission lines and masts to create chaos and havoc,” he stated.
Consequently, various scrap metal dealers called on Uhuru to reconsider the government’s stance stating that many Kenyans would lose their livelihood in the process.
