Layoffs loom as firms hit by shortage of scrap metals

Scrap metal dealers weigh iron sheets at a demolished area at Mukuru kwa Njenga slum in Nairobi. [File, Standard]

Ban on scrap metal is now threatening to render hundreds jobless as firms contemplate closing down over shortage of raw materials.

Associated Battery Manufacturers (ABM) is among the firms worst hit by the ban.

The firm uses scrap batteries as raw materials to manufacture automobile batteries.

President Uhuru Kenyatta indefinitely banned the scrap metal trade in the country on January 20 over what he termed wanton destruction of public infrastructure while sourcing the materials.

The ban came at the height of increased vandalism of road furniture and power transmission lines, whose materials were later traced to warehouses belonging to scrap metal dealers.

ABM is the only manufacturer of automobile batteries in the region. It recycles old batteries into pure lead and reusable plastic, which is used to manufacture automobile batteries.

Firm Chief executive officer Guy Jack has accused enforcement agencies of wrongly interpreting President Uhuru Kenyatta’s directive that banned the export of scrap metals.

He said the firm could be forced to close down and send its employees home if the matter is not correctly interpreted.

“ABM is set to close shortly if the directive banning the export of scrap outside of Kenya, is not clarified correctly to local authorities,” said Guy in a statement seen by The Standard on Sunday.

He said the firm used to source 2000 tonnes from used car and solar batteries per month. The materials are recycled into pure lead.

“The plant has received next to nothing since the presidential directive was issued,” he added.

He revealed the firm has invested more than Sh1 billion in the last 3 years.

Guy, however, said they welcome the ban on scrap metal directive as it would help address the perennial problem of vandalism.

In a recent press briefing, the dealers under the Kenya Iron and Scrap Metal Association (Kisma) umbrella said they are willing to collaborate with the government to stop the vandalism of government infrastructure.

“If we find any thieves in the supply chain, we will take them to police ourselves and put our members on notice not buy stolen materials. We are sorry that our sector has been mentioned in the vandalism and we are ready to stop the menace,” said the association’s secretary-general Irshad Sumra.

Sumra said the resolutions agreed on by the dealers who met in Nairobi on Tuesday include working with county police commanders as well setting notices warning of the sale of stolen materials in all the registered yards.