President Uhuru Kenyatta's directive banning the export of scrap metal has led to the closure of a Ksh1 billion factory in Athi River, owned by Associated Battery Manufacturers (ABM).
On February 6, ABM Chief Executive Officer (CEO), Guy Jack, announced that the company would close its recycling plant, citing a lack of raw materials in the market.
The factory, which uses over 2000 tonnes of lead mostly from scrap metal of wrecked cars, relies on scrap metals that are recycled to lead that is then used in the manufacture of batteries.
Jack revealed that the company's closure would affect Kenyans who are employed at the factory and have invested over Ksh1 Billion into the factory over the years.
He also claimed that there was no clarity over Uhuru's directive, further calling on the Head of State to reconsider his decision.
“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 metal outside of Kenya, is not clarified correctly to local authorities,” Jack stated.
Uhuru banned the export and dealership of scrap metal after the vandalism of Kenya Power and Lighting Company (KPLC) power lines which caused nationwide blackouts in most parts of the country.
As of today, we will no longer allow, and we have put a moratorium on the export or the buying or selling of any scrap material until we have put in place proper guidelines that will ensure that material is not coming from the hard-won investments that the Kenyan people have made,” Uhuru stated.
