How to Start Scrap Metal Business in Kenya and Licensing

A scrap metal business involves collecting, processing, and selling scrap metal to manufacturers. Construction sites, factories, and consumer items are just a few places where scrap metal can be found. Iron, steel, aluminum, copper, brass, and stainless steel are typical forms of scrap metal.

In order to lessen environmental pollution and preserve natural resources, the Kenyan government promotes recycling of waste items.

There are different ways to go about starting a scrap metal business, but some common steps include:

1. Obtaining the necessary licenses and permits:

If you want to start a scrap business in Kenya, you must first obtain a business license and register your company with Scrap Metal Council of Kenya. You must also follow any regulations regarding the handling and disposal of scrap materials in order to avoid any environmental or public health issues.

2. Securing a source of scrap metal:

You can get scrap metal from a variety of places, including construction sites, manufacturing facilities, and individual collections. Having a consistent source of scrap metal is critical for the business to run smoothly.

3. Compliance with regulations:

The scrap metal industry is heavily regulated, so you must make sure you are in compliance with all applicable rules to stay out of trouble with the law and avoid penalties.

Scrap Metal Licensing in Kenya

Before Applying for a License, Ensure you have the following documents in PDF

1. Have a Scrap Metal Dealers Association Membership Number and Certificate
2. Business Registration certificate
3. Business permit
4. Plot Title or Lease Agreement
5. Tax Compliance Certificate
6. Director’s Details i.e. KRA PIN and Certificate of Good Conduct

Below is the link to the licensing portal

https://licensing.scrapmetalcouncil.go.ke/site/login

Issuance of  Dealers Licence-  Ksh 250,000

Issuance of  Export Licence- Ksh 250,000

Issuance of Import Licence- Ksh 250,000

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Frequently Asked Questions ( FAQS)

1. How long should the approval of the License take?

Within 30 days you will receive your Licence if it has been approved

2. When does the license expire?

• Dealer Licence duration is 1 year
• Exporter Licence expiry is 6 months
• Importer Licence expiry is 1 year
• Miller Licence expiry is 6 months

3. Who can Apply for a license?

• Dealers
• Agents
• Millers
• Export
• Importers

Some functions of the Scrap Metal Council Are

1. Give appropriate measures and mechanisms for regulating the scrap metal industry in order to ensure economic growth, public health protection, and adherence to the Basel Convention’s environmental stewardship principles;
2. The appropriate measures and mechanisms for protecting public interest against vandalism, theft of utility infrastructure and private property;
3. Work in collaboration with the inspectors to bring order and integrity to the scrap metal trade.
4. Receive, vet and process all applications for the grant and renewal of licenses.
5. Receive public complaints and disputes from the public and within the scrap metal industry.

Some offences in regard to dealing with Scrap Metal Business

1. Dealing with scrap metal without a license:
2. Failure to conspicuously display a sign within their premises
3. Dealing with scrap metal:

• Before 6:00AM and past 6:00PM
• Dealings with persons under 18 years
• Dealings with persons who do not fully satisfy their given identities

4. Failure to report lost or stolen property:
5. Removing, defacing or destroying any scrap metal from the infrastructure designed for roads, bridges, railways, pipelines, telecommunication, electricity, water and sewerage, or any government infrastructure project
6. Dealing with scrap metal elsewhere other than the specified premises without authorization
7. Allowing scrap metal of unknown origin into one’s premises

Conclusion

Running a scrap metal business can be difficult, but it can also be extremely profitable if done correctly.

It necessitates a thorough understanding of market trends and regulations, as well as an efficient collection and processing system and strong relationships with suppliers and customers.

Scrap Metal Council Contacts

Physical Address:  17^th Floor, National Social Security House, Block A (Eastern Wing)

Postal Address:   P.O. Box 30418-00100, Nairobi, Kenya

Telephone Number:  +254 114862446