The Scrap Metal Council (SMC) has announced the suspension of all renewals for scrap metal import licenses, citing growing concerns from local industry players over the increasing preference for imported scrap metal. The move is intended to provide an opportunity for dialogue and reforms aimed at revitalizing the local scrap metal sector.
In a statement issued on Thursday, SMC chairperson Francis Mugo confirmed that the Council had received numerous complaints from associations representing local scrap metal dealers. These complaints centered around the disruption caused by the surge of imported scrap metal, which has edged out local suppliers from the market.
“The increasing reliance on imported scrap metal by steel manufacturers is disrupting the sustainability of the local scrap industry. Our goal is to create a level playing field while safeguarding its future,” said Mugo.
The suspension is expected to pave the way for broader consultations among stakeholders, including manufacturers, local dealers, and regulators. The Council will use this period to evaluate policy interventions that can strike a balance between maintaining a steady steel production supply and protecting the local scrap metal ecosystem.
In addition, the Council plans to review the current licensing framework to address enforcement gaps that have enabled illegal trade. This includes tackling the rampant theft and vandalism of public infrastructure—issues often linked to rogue scrap metal dealers.
Some players within the industry have welcomed the move, describing it as timely and necessary. A Nairobi-based dealer noted, “This move gives the local industry a fighting chance. We’ve been calling for policies that prioritize local suppliers to protect jobs and businesses.”
The suspension marks a significant policy shift aimed at restoring confidence among local dealers and promoting fair competition. It also comes at a time when the government is intensifying efforts to regulate the scrap metal trade and curb criminal activities associated with it.
As consultations begin, stakeholders are hopeful that new guidelines will support local businesses while ensuring a stable and ethical supply chain for the country’s growing steel manufacturing sector.
