Interior CS Fred Matiang'i has announced adjustments to the blanket ban on the sale of scrap metal directed by President Uhuru Kenyatta in February.
In a press statement on Wednesday, March 16, the Interior CS stated that the trade would now be open to suppliers who apply and qualify for the new licenses.
He, however, warned that the lifting of the moratorium would solely depend on compliance with the state regulations.
“We are not going to allow the sector to continue operating in an unlicensed manner and no amount of political intimidation or pressure will make us abandon the resolve.
“We are not building infrastructure for scrap metals vandals. We’d rather the scrap business died but we managed to protect our critical infrastructure,” the CS stated.
The announcement was made after Matiang'i chaired a meeting between the regulatory agencies and scrap metal dealers.
The new regulations were drafted by the Ministry of Trade which also incorporated stakeholders’ recommendations on the control of the scrap metal trade.
The business has been blamed for the increase of vandalism of critical infrastructure in Kenya. However, the ban also drew negative implications on the economy - as some businesses were forced to close - rendering hundreds of Kenyans jobless.
The sector had requested tough regulations to deal with rogue scrap metal dealers, which they vowed to help the government implement - as opposed to a blanket ban.
Attorney General Kihara Kariuki, who also attended the meeting, assured the dealers that he would advise the president against lifting the moratorium if the majority of the participants failed to comply with the guidelines.
“As long as I am the AG of this country, I will not advise the President to lift the moratorium until we have the regulations in place,” he warned.
According to Matiang'i, a special multi-agency had been set up to protect powerlines and critical installation.
Trade CS Betty Maina had highlighted that currently, 91 scrap metal dealers had their applications pending while over 3900 operators were operating illegally in the country.
The new regulations provide charges to licensed dealers, millers, and smelters. They will be charged Ksh250,000 in annual fees while the amount for agents and jua kali collectors will be Ksh150,000 and Ksh50,000 respectively.
Scrap metal dealers will be required to display the name and license number of their businesses outside their facilities, they will be required to belong to a Business Member Organisation(BMO) and only trade with licensed dealers when sourcing or selling their stock.
Scrap metal dealers will be required to carry a copy of their license and a letter of authorization. The new regulations restrict the management of the infrastructure from dealing with a broker when engaging with a local smelter.
