Scrap smuggling pushes local manufacturers towards shutdown
Business
By
Mike Kihaki
| Aug 23, 2026
Kenya’s battery manufacturing industry is warning of an impending production crisis as rampant smuggling of scrap lead-acid batteries to neighbouring countries threatens to cut off the critical raw material needed to sustain local production.
Associated Battery Manufacturers (East Africa) Limited (ABM), the largest manufacturer of automotive and solar lead-acid batteries in East and Central Africa, says its collection of used batteries has declined by about 50 per cent, putting its operations and thousands of direct and indirect jobs at risk.
The company has blamed the sharp decline on the illegal export of scrap batteries, particularly to Tanzania, despite a ban on the export of the raw material through Kenya’s border points.
Group Managing Director Guy Jack warned that the company could be forced to suspend production if the smuggling is not urgently contained.
“This will put many direct and indirect jobs at risk and negatively affect local manufacturing, tax revenue and export earnings,” Jack said.
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He said the illegal trade was undermining the ability of manufacturers to maintain steady production, while depriving the country of raw materials that could support a circular economy and local industrialisation.
Jack called on security agencies, particularly those operating at border points, to intensify surveillance and ensure suspected smugglers are prosecuted.
The concerns come amid growing scrutiny of the movement of scrap metal across Kenya’s borders.
The Scrap Metal Council has attributed the problem partly to inadequate cooperation among government agencies tasked with regulating the sector and securing the country’s borders.
Council chairman Francis Mugo said scrap metal was a highly regulated business because of its potential links to vandalism and the theft of public, private and critical national infrastructure.
“The Council has noted an increase in the number of dealers operating without valid licenses, which is a criminal offence punishable by law,” Mugo said.
He added that the Council had also recorded cases involving the importation and exportation of scrap metal without the required permits and approvals.
Of particular concern is the illegal export of lead-acid batteries, whose export is currently prohibited.
Mugo warned that such activities posed a serious threat to Kenya’s battery manufacturing industry and undermined the country’s industrialisation agenda.
The concerns were reinforced over the weekend when border security officers at the Taveta border intercepted a truck allegedly ferrying scrap batteries to Tanzania.
According to ABM official James Wafula, the truck had allegedly been trailed from Nairobi, where it collected scrap batteries from several yards before proceeding towards Mombasa Road.
“It then continued to load scrap batteries at various stops on Mombasa Road. The truck was intercepted by KRA officials at Kimana along the Emali-Taveta route at about 11pm and detained, only to be released under mysterious circumstances at about 2am and allowed to cross the border to Tanzania,” Wafula said.
The circumstances surrounding the reported release have raised questions about enforcement and coordination among agencies responsible for curbing illegal exports.
Mugo urged scrap dealers to comply with licensing and documentation requirements, conduct due diligence and avoid supporting illegal trade.
For manufacturers, the crisis highlights the vulnerability of local industries that depend on recycled materials.
ABM says continued loss of scrap batteries could disrupt production, threaten jobs and weaken Kenya’s position as a regional manufacturing hub.
The industry is now calling for stronger border surveillance, coordinated enforcement and prosecution of offenders to stop the smuggling before local battery production grinds to a halt.