Illegal scrap metal traders to be fined Sh20m.
Applicants for scrap metal dealership permits are expected to know their fate today even as the State set steep fines for illegal traders ahead of tomorrow when a ban on the trade is lifted.
A multi-agency team appointed by the State yesterday concluded vetting of 260 dealers who had registered with the Trade and Industrialiation ministry, which yesterday also said traders who held licenses before the January ban on scrap metal trade was imposed would be vetted afresh.
“Any person or person who undertakes scrap metal trade without a licence commits an offence and is liable on count,” Trade, Industrialisation and Enterprise Development Cabinet Secretary, Betty Maina said in a notice when she released a roadmap for lifting the scrap metal export ban imposed by President Uhuru Kenyatta.
A breach of the permit requirement comes with hefty fines. For the first offence, one is liable to pay a fine not exceeding Sh10 million or imprisonment not exceeding three years or both. For a second offence to a fine not exceeding Sh20 million or imprisonment not exceeding five years or both.
To avoid abuse of the export process, Ms Maina said each consignment of scrap metal for export will be directly approved by the Principal Secretary in the Trade and Industrialisation ministry.
“As per Section 26 of the Scrap Metal Act each consignment for export shall be issued with a certificate from the Principal Secretary,” she said.
Kenya is currently grappling with a surge in vandalism including recent cases of destruction of sections of the Chinese-built standard gauge railway, power transmission lines, road rails, and bridges due to the booming scrap metal demand.
Vandalism was also partly blamed for the collapse of a tower on the Kiambere-Embakasi high voltage transmission line leading to a nationwide blackout in January this year.
The blackout prompted President Kenyatta to ban the scrap metal trade, which has in turn left dealers and companies that use recycled electronics and metal to manufacture products staring at a bleak future.
Ms Maina said dealers who shall have been licensed by tomorrow (May 1) will be allowed to resume trading.
Since the ban was placed four months ago, many businesses have complained that they have lost incomes, with some sectors such as construction and manufacturing claiming the situation has led to an increase in prices for raw materials, eventually raising the cost of business.
The Ministry says it has established a multi-agency team that will be monitoring the scrap metal trade moving forward.
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