Scrap metal dealers operating outside the law have been put on notice, with the Scrap Metal Council warning that unlicensed businesses and illegal movement of scrap could fuel vandalism and threaten key industries.
The Council said it had observed a growing number of dealers conducting business without valid licences, despite the sector being subject to strict regulations because of the risks linked to the trade.
Council Chairperson Francis Mugo said dealing in scrap metal without the required licence is a criminal offence and warned industry players to ensure their operations meet the legal requirements.
“The Council has noted an increase in the number of dealers operating without valid licences, which is a criminal offence punishable by law,” Mugo said.
The regulator said the nature of the scrap metal business makes compliance important, particularly because illegally acquired materials can be linked to the destruction of private property, public infrastructure and critical national installations.
“The Scrap Metal Council reminds all industry players that the scrap metal business is a highly regulated industry, given its sensitivity and the risk of vandalism of private property, public and critical national infrastructure,” the Council said.
The Council also cautioned dealers involved in bringing scrap metal into the country or taking it out without the necessary permits and approvals.
It raised specific concern about the illegal export and smuggling of lead-acid batteries, whose export is currently prohibited.
“Such unlawful activities pose a serious threat to Kenya’s local battery manufacturing industry and undermine the Country’s industrialisation agenda,” he said.
The Council urged dealers to ensure every transaction is backed by proper documentation and that they establish the source and legality of scrap materials before conducting business.
It also asked industry players to reject any dealings involving vandalised property or illegally obtained scrap and to avoid supporting activities that breach the law.
“The Council calls upon all scrap metal dealers and other industry players across the country to strictly comply with the law, maintain proper documentation, conduct due diligence and refrain from engaging in or supporting any form of vandalism or illegal trade,” the statement said.
The regulator said it remains focused on building a scrap metal sector that operates openly and responsibly while supporting economic growth and the country’s industrialisation efforts.