The Challenges of Scrap Metal Trade and Infrastructure Protection in Kenya

On January 11, 2022, Nairobi experienced widespread power outages when Kenya Power lost supply along the Kiambere-Embakasi high-voltage transmission line. This incident was traced back to vandals who had removed cross beams from angle towers in search of scrap metal, resulting in the collapse of these vital structures.

In response to this alarming trend, Kenya’s then-president, Uhuru Kenyatta, implemented a national ban on the local trade and export of scrap metals and scrap batteries. This move aimed to protect essential infrastructure from vandalism and to safeguard East Africa’s lead-acid battery manufacturers, who rely on scrap batteries as a source of raw materials.

Scrap metals play a crucial role in producing steel for the housing and road construction industries, while batteries are recycled to manufacture new lead-acid batteries. However, the situation took a turn in May 2022, when the trade minister lifted the local trade ban but maintained the prohibition on scrap metal exports. This change followed the establishment of stricter regulations, which imposed higher penalties for repeat offenders caught exporting scrap metal.

The 2022 Scrap Metal Rules specified that second-time offenders could face fines of approximately $132,000 and up to five years in prison, or both. Despite these regulations, incidents of vandalism and theft continue to plague Kenya’s public infrastructure, with reports indicating that the measures have had limited effectiveness in curbing these crimes.

In May 2023, the Kenya Revenue Authority intercepted five trucks attempting to smuggle stolen scrap metal and batteries into Tanzania at the Taveta border. Similarly, a coordinated operation between police and Kenya Power led to the arrest of scrap metal dealers found in possession of equipment owned by electricity and telecommunications companies. Just three months later, more dealers were caught vandalizing government vehicles in Nairobi.

According to the Kenya Scrap Metal Council, the smuggling of scrap metal across East Africa is facilitated by porous borders, with hotspots such as Busia, Namanga, Taveta, and Lunga Lunga acting as conduits for illegal exports to Uganda and Tanzania. In 2022, the Kenya Roads Board allocated approximately $40 million (KES 5.9 billion) to repair road barriers, poles, lights, bridges, and electric wires damaged by these criminal activities.

The illicit trade of scrap metal begins with ‘collectors’ who vandalize public infrastructure to steal valuable metals. They sell the scrap to warehouses or yards for about $0.26 per kilogram, while traders pay approximately $0.33 per kilogram. This metal is subsequently sold to larger warehouses, which often collude with transporters and border officials to export it to neighboring countries.

Despite the crackdown on collectors, warehouse and scrap yard owners—who are the primary recipients and exporters of scrap metals—have largely evaded scrutiny. In May 2023, allegations emerged linking scrap metal dealers to the use of child labor for collecting metals in Kericho County, where many children have reportedly dropped out of school to engage in this illicit trade.

Peter Wafula, a spokesperson for the Battery Manufacturers Association, pointed out that illegal exports persist because licenses of dealers caught exporting scrap metals are not revoked. The lack of a regional framework to combat scrap metal smuggling further complicates the issue, allowing for the flourishing Tanzanian market for Kenyan scrap.

In Tanzania, dealers face fines as low as $4,000 for exporting scrap metal without a license, compared to over $65,000 in Kenya. This disparity highlights the need for a more robust enforcement mechanism in Kenya, potentially including a permit system for importing furnaces and other machinery used in smuggling operations, as proposed in South Africa.

To effectively combat the illicit scrap metal trade and protect public infrastructure, the Kenyan government must enhance coordination among relevant agencies for better information sharing, border surveillance, and enforcement of the scrap metal export ban.

Strengthening regulations and harmonizing legislation across East African countries could disrupt the cross-border theft and smuggling of scrap metals, ultimately minimizing the costs associated with vandalized infrastructure. As Kenya continues to address these challenges, the need for a comprehensive approach to scrap metal trade regulation and infrastructure protection remains crucial.