Scrap metal dealers have urged the government to lift restrictions on steel exports, lamenting that thousands of businesses were struggling to stay afloat due to imported steel that continues to dominate the Kenyan market.
The restrictions that were introduced to curb vandalism and ostensibly protect local manufacturers, the dealers say, have choked the local legitimate businesses and locked them access to international markets.
Scrap Metal dealers Association Chairperson Evans Ng’ang’a wants the decision reviewed, arguing that more than 70 percent of steel used locally was imported, leaving local dealers including recyclers with limited buyers.
STABILISE PRICES
He said easing the restrictions would help stabilise prices, create jobs and improve the country’s foreign exchange earnings.
“The restrictions are hurting the industry making thousands of our dealers struggle to stay afloat,” Ng’ang’a said, adding that expensive license fees totaling to about Sh400, 000 were also discouraging entrepreneurs from investing in the industry.
They include Scrap metal Council’s license costing Sh250, 000, NEMA Sh85, 000 and county government licenses that vary from one county to another.
He said it was sad that local steel lay unused while the country was importing 10 times more than the local production, stressing on the need to prioritise domestic products.
VANDALISM
While supporting the government’s move to rein in dealers involved in vandalism of public infrastructure, the official maintained that any of their members involved in illegal activities risked deregistration.
The government has previously defended the strict controls on the trade due to past vandalism cases of critical infrastructure including railways and power lines.
Anti-Vandalism Squad commanding officer Joshua Chacha said that the controls had significantly reduced vandalism, thereby protecting local manufacturers and helping enhance traceability of local products.
But the dealers insist on balanced policies that protect the public infrastructure without crippling the trade.
They have urged the Ministry of Trade to expedite consultations with top government officials including President William Ruto to strengthen the industry.
