Industry

Battery manufacturers seek State intervention on illegal scrap exports

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Associated Battery Manufacturers East Africa limited (ABM) managing director Guy Jack (right), the Cabinet Secretary for Industrialization and Enterprise Development Adan Mohamed (centre) and his PS Wilson Songa during the launch the very first locally manufactured maintenance-free car batteries in Kenya. PHOTO | SALATON NJAU

Battery manufacturers have asked the Industrialisation Ministry to urgently operationalise the Scrap Metal Act (2015) to protect local raw materials from being exported by unscrupulous metal traders.

The industry players said a delay in implementing the Act has exposed raw materials meant for local industries to illegal exports.

“Unscrupulous scrap metal traders continue to deny manufacturers access to the material through illegally exporting scrap metal, particularly lead. The industry estimates that Kenya losses 100 tons of lead to these illegal exporters every week,” Guy Jack, the Associated Battery Manufacturers (ABM) Group chief executive officer said.

ABM deals in automotive and solar power batteries manufacturing across the East African region and derives its raw materials from the local market.

Mr Guy said the unscrupulous dealers were exporting secondary lead to India and China owing to its high demand in the international market, denying local manufacturers raw materials.

“Unscrupulous scrap metal dealers in Kenya have wreaked havoc to the industry. Local and international environmental safeguards continue to be violated, in the handling of this volatile and highly toxic metal as illegal exports disguised as elevator counter weights and oxide for paints runs unchecked,” Mr Guy said in a statement.

Industry players estimate the country is losing 100 tonnes of lead to the illegal exporters every week.

This is despite the Kenyan battery manufacturers having a monthly capacity of 100,000 batteries to supply the EAC market which is estimated at 200,000 a month.

“The shortfall is imported, creating an estimated US$17million in foreign exchange outflow monthly,” said Mr Guy.

He warned that if the trend continues, the jobs of thousands of Kenyans would be on the line.

In 2012, there was a protracted push by the east African Community for a complete export ban of used/scrap lead batteries, lead scrap, crude lead or refined lead from the Common Market.

While this was achieved, implementation has faced challenges due to lack of State laws governing the same.