The government has been urged to implement the Scrap Metal Act, 2015 to end illegal exportation of materials.
Associated Battery Manufacturer Limited, the region’s largest battery manufacturer, said illegal importation of scrap materials is threatening the industry,
which employs thousands of youth.
ABM managing director Guy Jack said the law should be implemented to regulate and restrict exportation of battery scrap materials.
“This legislation was meant to support the retention of the raw material for value addition. It also provides stringent conditions under which exports of lead would be permitted,” Jack said.
He said the law provides for the establishment of a Scrap Metal Council, although the agency is yet to be formed three years since the legislation was enacted.
Jack said companies were facing an acute shortage of raw materials because of exportation by scrap metal dealers.
“There is a huge potential for battery manufacturing in Kenya, but it is seriously hampered by irregular and illegal handling of recyclable lead,” Jack said.
Lead is the most economical source of raw material for battery manufacturing. Dubai, India, Korea, Malaysia, China and Indonesia are some of the major importers of the raw battery scrap materials from East Africa.
“This is a case where we are exporting our manufacturing jobs and endangering our own industries in East Africa,” he said.
The East African Community consumes about three million batteries annually, against a production capacity of about one million batteries per year.
The region has only two lead acid battery manufacturers – ABM and Uganda Batteries Limited.
The deficit in the production is imported from Korea, India, Malaysia and Spain. Both the ABM and UBL use locally acquired raw materials.
Kenya, the largest consumer of Lead Acid Batteries in the EAC, produces a third of the raw materials but recycles only a quarter. The rest disappears into illegal exports.