Government suspends renewals of scrap metal import licenses amid industry complaints

Scrap Metal Council chairperson Francis Mugo during a past event/FILE 

The Scrap Metal Council (SMC) has moved in to address the rising concerns from local industry players over the surge in imported scrap metal by suspending renewals of all scrap metal import licenses.

In a statement, SMC chairperson Francis Mugo acknowledged receiving numerous complaints from scrap metal associations.

He stated that the increasing preference for imported scrap by steel manufacturers was disrupting the local scrap metal sector.

“The rising imports have undermined the local scrap metal industry, with steel manufacturers opting for imported scrap over locally available materials,” Mugo stated.

He further announced that the council will initiate consultations with key industry stakeholders and steel manufacturers to chart a sustainable way forward. 

The suspension aims to allow for dialogue and evaluation of measures to protect and promote the local scrap metal ecosystem.

Mugo reassured manufacturers that the Council’s consultations will explore ways to balance the interests of all stakeholders without jeopardizing the supply chain for steel production. 

“Our goal is to create a level playing field while safeguarding the sustainability of the local scrap metal sector,” he said.

The Council also indicated that it would review the licensing framework to enhance enforcement against illegal dealers and curb practices linked to vandalism and the theft of critical infrastructure.

A section of scrap metal dealers has welcomed the decision by the Council noting this was a timely intervention.

“This move gives the local industry a fighting chance. We have been calling for policies that prioritise local scrap metal suppliers to protect jobs and businesses,” said one of the Nairobi-based dealers.