Kenya earns $116 million in foreign exchange as industry players disparage police harassment

Kenya earns $116 million in foreign exchange as industry players disparage police harassment

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Scrap metal dealers across the country have raised an alarm over the continued harassment by the police despite the legalisation of the multi-billion shillings industry.

The dealers say persistent police extortionism, harassment and frustration through arbitrary arrest forced many legitimate businesses to close down and dealers to quit the industry.

Speaking during a stakeholders meeting in Ruiru Town, the traders said the industry has significantly improved the country’s economy by fetching billions of shillings as foreign exchange and needs empowerment.

They presented their grievances to the Chair of Scrap Metal Council of Kenya Francis Mugo who assured them that the government recognises the industry and that the sector has been fully licensed and legalized.

However, he urged traders not to give in to extortion by corrupt police officers, instead report such cases to senior authorities.

“This is a legitimate business that is growing and supporting key sectors of our economy, including the affordable housing project championed by President William Ruto. Thus, we urge police officers to stop invading our yards and demanding bribes. We will not tolerate this harassment any longer,” said Mugo.

He revealed that the industry earned the country over Ksh15 billion ($116 million) in foreign exchange in 2024 alone, Ksh8 billion ($62 million) in 2023 and Ksh2 billion ($15.5 million) in 2022, and therefore needed support.

Since the Kenya Kwanza government came into power two years ago, Mugo said, the sector has seen unprecedented growth with scrap metal now forming a key component of affordable housing mega projects.

On the other hand, Evans Ng’ang’a, a representative of the Knight Club and Iron Metal Dealers Association, reiterated the industry’s potential but expressed concern over the importation of scrap metal, which he said undermines local production.

“Kenya is capable of producing enough steel. We oppose the continued importation of scrap metal and are currently in talks with the government to address this issue. We must prioritise local capacity,” said Ng’ang’a.

The traders led by Gladys Macharia have now appealed to government to recognise and protect the scrap metal sector, terming it not only a source of livelihood for thousands of Kenyans but also a strategic contributor to national development.

They called for continued dialogue to ensure the industry thrives without interference.

“This sector should be empowered just like the coffee and tea industries due to its huge potential,” said Ms Macharia.

  • A Tell Media / KNA report / By Muoki Charles
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