Stop importation of cheap scrap metal, dealers urge state
National
By
Hudson Gumbihi
| Apr 16, 2025
Scrap metal dealers have appealed to the government to protect them from unfair competition caused by cheap imports flooding the local market.
Some registered dealers are reportedly importing scrap metal, which is preferred by most steel millers due to its lower cost. According to the dealers, this practice is driving out local metal suppliers who source materials domestically, leading to job losses.
The dealers are now calling on the government to either ban these imports or impose taxes on them, claiming the imported metals are of inferior quality.
Officials and members of the Scrap Metal Dealers Association on Wednesday decried the increasingly unfair business environment, which they say has resulted in job losses and the collapse of several local businesses.
"We are not against importation. What we oppose is the unfair business environment that favours importers. As local dealers, we demand government protection, as this is a critical sector supporting nearly one million people," said Evans Ng'ang'a, Chairman of the Association.
Ng'ang'a asserted that Kenya has sufficient capacity to supply all steel millers with high-quality, locally sourced materials. He argued that the authorities should discourage the importation of steel reinforcements and steel billets.
He also criticised some elected leaders for allegedly intimidating Narendra Raval, proprietor of Devki Steel Mills Limited, saying that the influx of imports has disrupted the market, resulting in unstable scrap metal prices per kilogramme.
"Let those MPs stop harassing Narendra, an industrialist and philanthropist who has significantly contributed to the scrap metal industry since 1998. He is an honest man who has consistently supported our sector," said Ng'ang'a.
Gladys Nyambura, the Association's Secretary General, claimed that some of the imported scrap metal is galvanised (zinc-coated) to conceal its low quality.
"We're concerned that building integrity is being compromised right from the sourcing stage, as substandard materials are being used to produce steel for the construction industry," said Nyambura.
Previously, scrap dealers were accused of encouraging vandalism of road infrastructure and Kenya Power's copper wires. However, the Association noted that through stricter inspection of scrap materials, such incidents have drastically reduced.
Earlier this month, Ng'ang'a wrote to Nairobi Governor Johnson Sakaja, complaining about ongoing harassment of licensed scrap metal dealers.
"Enforcement officers from the environment department are making arbitrary arrests and demanding exorbitant bribes from our members," said Ng'ang'a in a letter dated 7 April 2025.
He also addressed a letter dated 4 April 2025 to Trade and Industrialisation Cabinet Secretary Lee Kinyanjui, requesting intervention to regulate the importation of steel reinforcements and billets.
"I wish to address the recent influx of imported steel reinforcement and billets. We urge your intervention to protect both the scrap metal and steel industries by regulating imports, which have severely affected our operations. We look forward to future engagement," he stated.
Ng'ang'a emphasised that the metal recycling industry is a vital source of employment for thousands of Kenyans, who earn a living by collecting and selling scrap metal to steel smelting companies. The processed steel is then used in the construction sector.
"The metal recycling industry has sufficient capacity to supply all steel millers with scrap metal as raw material, making imports unnecessary," he concluded.