Scrap metal dealers seek State protection from cheap imports, police

The government has pledged to protect scrap metal dealers from cheap imports and harassment by corrupt security agencies, noting that the sector is a big contributor to the economy.

Scrap Metal Council of Kenya chairman Francis Mugo urged the traders to resist extortion by corrupt police officers and report such incidents to higher authorities.

At the same time, Knight Scrap and Iron Metal Dealers Association chairman Evans Ng’ang’a raised concerns over the influx of imported scrap metal, which he said undermines local production.

The two officials spoke during the association's annual general meeting Ruiru on Wednesday.

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According to data from the council, the regulator, the sector injected Sh15 billion into the economy in 2024 up from Sh8 billion in 2023.

Mugo said the council is collaborating with relevant agencies to safeguard the interests of the traders.

He urged dealers who have not registered with the council to do so.

“We have listened to the plight of scrap metal dealers, and I want to assure them that the government will heed their concerns," he said."We are going to work closely with the Inspector General of Police an other government agencies both in national and counties to ensure that minor issues are addressed.”

The council chair noted that scrap materials are now a crucial component in the government’s affordable housing projects.

Mugo added that the council has recently automated the import and export processes for scrap metal, effective March 15, 2025.

This means that registered scrap metal dealers will need to apply for permits online through the Trade Facilitation Platform.

The council also stated that all stakeholders should be aware of this change and that the automation is designed to streamline trade.

Ng’ang’a criticised the persistent harassment by some government bodies, dismissing claims that dealers are vandals.

“We support the government in every aspect and deserve respect,” he asserted, noting that the Knight and Iron Metal Dealers Association now has 500 members.

“We are not fighting any agency; we seek harmonious collaboration,” he stressed, emphasising the need to expand licensing opportunities for more traders.

Gladys Macharia, the association’s Secretary General stressed the legitimacy of scrap metal businesses.

“We’re not thieves. After former President Uhuru Kenyatta’s crackdown, I vowed never to let this sector be shut down again,” she said.

Macharia highlighted challenges including police harassment where 

Officers frequently raid their yards, falsely claiming their licenses are fake.

“While the sector thrives, unfair competition from imports threatens our livelihoods,” Ng’ang’a reiterated, urging stricter regulations to safeguard local dealers.

Scrap metal business in Kenya has faced significant challenges in recent years, particularly due to stringent government regulations aimed at curbing vandalism of public infrastructure.

The members also urged other counties to follow Nairobi's example in consolidating licenses.

They criticised counties like Kiambu for maintaining lengthy lists of permits, including newly introduced licenses such as the recycling license, which they described as tedious and costly.

They noted that the proliferation of excessive licensing requirements has forced many businesses to evade authorities, resorting to a "hide-and-seek" approach to avoid compliance.

In 2022, retired President Uhuru Kenyatta imposed a temporary ban on the scrap metal trade, accusing dealers of facilitating theft of materials like copper and aluminum from power lines, railways, and water pipes.

This ban, though later lifted, caused massive losses for legitimate traders.

Another major challenge has been the influx of cheap imported scrap metal, which undercuts local dealers and stifles domestic recycling efforts.

Many traders argue that foreign scrap — often subsidised or of lower quality —floods the market, making it difficult for Kenyan businesses to compete. This has led to declining profits and forced some small-scale dealers out of the industry.