Associated Battery Manufacturers (ABM) is banking on a friendlier legal landscape to increase its car battery sales in Kenya and the East African region.
The Kenya government in 2009 spearheaded an amendment to the third schedule of the East Africa Community’s Customs Management Act, which placed a ban on the exportation of used automobile batteries, lead scrap, crude and refined lead throughout the EAC. The amendment replaced the ban with a “restriction”.
Adan Mohammed, Kenya’s Cabinet Secretary for Industrialisation and Enterprise Development said, “The ban was a non-tariff barrier to our local metal manufacturers. With the restriction, only an approval is required for them to export the recommended amount to other countries,” he added.
The ban was effected as a result of the destruction of infrastructure in the energy and telecommunication sectors through vandalism.
READ: UMA asked to rein in steel millers to curb vandalism
The company last week launched a $6.5 million facility in Nairobi for manufacturing maintenance-free car batteries for the East, Central and Southern African regions.
These maintenance-free car batteries will use lead as their key raw material, which is mainly sourced locally from old scrap batteries that are recycled to obtain pure lead.
Lead is the most important raw material for ABM’s manufacturing plant, which makes batteries for both local and export markets. The company, which already produces 10,000 maintenance-free batteries a month, expects to manufacture up to 60,000 in the next five years.
ABM runs a scrap battery collection network for old car and solar batteries, which are brought in by collectors for recycling.
Kenya’s President Uhuru Kenyatta in January signed into law the Scrap Metal Act, 2014, which not only provides a framework for an increase in the availability of local raw materials but also improves traceability of these scrap materials through an industry-lead mechanism.
The new law provides for a fine of up to $215,576 or a seven-year jail term for those found in possession of scrap metals sourced through vandalism of public infrastructure.
The Kenya government in 2009 spearheaded an amendment to the third schedule of the East Africa Community’s Customs Management Act, which placed a ban on the exportation of used automobile batteries, lead scrap, crude and refined lead throughout the EAC. The amendment replaced the ban with a “restriction”.
Adan Mohammed, Kenya’s Cabinet Secretary for Industrialisation and Enterprise Development said, “The ban was a non-tariff barrier to our local metal manufacturers. With the restriction, only an approval is required for them to export the recommended amount to other countries,” he added.
The ban was effected as a result of the destruction of infrastructure in the energy and telecommunication sectors through vandalism.
READ: UMA asked to rein in steel millers to curb vandalism
The company last week launched a $6.5 million facility in Nairobi for manufacturing maintenance-free car batteries for the East, Central and Southern African regions.
These maintenance-free car batteries will use lead as their key raw material, which is mainly sourced locally from old scrap batteries that are recycled to obtain pure lead.
Lead is the most important raw material for ABM’s manufacturing plant, which makes batteries for both local and export markets. The company, which already produces 10,000 maintenance-free batteries a month, expects to manufacture up to 60,000 in the next five years.
ABM runs a scrap battery collection network for old car and solar batteries, which are brought in by collectors for recycling.
Kenya’s President Uhuru Kenyatta in January signed into law the Scrap Metal Act, 2014, which not only provides a framework for an increase in the availability of local raw materials but also improves traceability of these scrap materials through an industry-lead mechanism.
The new law provides for a fine of up to $215,576 or a seven-year jail term for those found in possession of scrap metals sourced through vandalism of public infrastructure.
The East African
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