Scrap Metal Council suspends license renewals amid surge in imports and industry concerns
The Council has not given a timeline for when the license renewals will resume, but insisted that the temporary freeze is necessary to restore balance in the industry.
The Scrap Metal Council has halted all renewals of scrap metal import licenses in response to growing concerns from local industry players over the rising importation of scrap materials.
In a statement, Council Chairperson Francis Mugo said the move follows a series of complaints from scrap metal associations who argue that the influx of imported scrap is hurting the local sector.
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“The rising imports have undermined the local scrap metal industry, with steel manufacturers opting for imported scrap over locally available materials,” Mugo said.
He added that the Council would be engaging stakeholders and steel manufacturers in consultations aimed at mapping out a long-term solution to the challenges facing the sector.
“Our goal is to create a level playing field while safeguarding the sustainability of the local scrap metal sector,” Mugo said.
The Council noted that it would also undertake a review of the existing licensing framework to tighten enforcement and combat illegal practices, including theft and vandalism of national infrastructure.
“This suspension allows us time to dialogue, evaluate the situation, and propose workable solutions that protect local dealers while maintaining the integrity of the supply chain,” Mugo said.
Some scrap metal dealers have backed the Council's decision, describing it as a critical step toward reviving the local industry.
Restore balance
The Council has not given a timeline for when the license renewals will resume, but insisted that the temporary freeze is necessary to restore balance in the industry.
Recently, Interior Cabinet Secretary Kipchumba Murkomen issued a stern warning to scrap metal dealers found vandalising essential national infrastructure such as roads and electricity installations.
Murkomen revealed that security personnel had already been deployed across the country to crack down on offenders and efforts were underway to work closely with the judiciary to impose harsher penalties on those convicted.
“Moving forward, we shall continue to roll out more robust strategies to guarantee that individuals sabotaging our roads and essential infrastructure for scrap metal are dealt with firmly,” he said.
“Moreover, we seek greater collaboration with the judiciary. We do not want suspects involved in major crimes to be granted lenient bail terms, only to return and continue terrorising society."
He also disclosed that significant progress had been made in the crackdown, including the dismantling of a major criminal syndicate behind infrastructure theft.
“Our critical infrastructure is being safeguarded, and I am very pleased with the progress made so far by our regional and county security teams in completely taking down the gang responsible for stealing transformers in this county,” Murkomen stated.
His remarks come just months after the Scrap Metal Dealers Association raised concerns over government plans to merge 42 state corporations into 20 entities, a move they feared could fuel a rise in illegal activity within the industry.
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