Economy

Battery maker faces closure on Uhuru scrap metal ban

battery

Workers at the Associated Battery Manufacturers East Africa limited. PHOTO | NMG

A battery manufacturer has warned of the imminent closure of its Sh1 billion plant following President Uhuru Kenyatta’s ban on scrap metal dealings.

Associated Battery Manufacturers (ABM) says its’ recycling plant in Athi River, where old batteries are recycled back into the pure lead and reusable plastic, will close due to lack of raw materials.

The manufacturer has blamed the scarcity of raw materials on incorrect interpretation by enforcement agencies, including county governments, of Mr Kenyatta’s ban.

The President mid last month imposed a ban on exports and dealings in scrap metal, hitting hard traders currently operating in the sector.

Mr Kenyatta put a moratorium on the export or the buying or selling of any scrap material until proper guidelines are put in place to regulate the sector.

“ABM, with a direct and indirect employee base of several thousand people, looks set to close shortly, due to lack of raw material if the President’s directive banning the export of scrap outside of Kenya, is not clarified correctly to local authorities,” Guy Jack, ABM’s chief executive said.

The ban followed an increase in vandalism mainly on power lines across the country.

“What has happened is local authorities, city councils and police have incorrectly interpreted the export ban, and assume it applies to local movement, which it does not,” Mr Guy said.

He said the recycling plant normally used to receive 2,000 tonnes per month of lead, sourced from used car and solar batteries which are collected and recycled back into pure lead.

“But the plant has received next to nothing since the presidential directive was issued. ABM has invested well over Sh1 billion in the last three years, all riding on the back of secure raw material availability,” Mr Guy said.

He said ABM’s key raw material is scrap batteries that are sourced from all over the country.

Whereas the presidential directive banning the export of scrap is long overdue, Mr Guy said the misinterpretation of the orders spells doom to multibillion-shilling investments.

“The position has adversely affected multiple industries who rely solely on recycled materials as their key input, all of whom are now also faced with the imminent threat of closure if the directive is not clarified correctly,” Mr Guy said.

He wants the government to strictly enforce the Scrap Metals Act to cut out unscrupulous dealers.

Globally, the export of scrap is unusual, as it is the feedstock for recycling in multiple industries, all of which create employment and local value.

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