Some of the illegal export of scrap batteries impounded . [Courtesy]
Kenya’s battery manufacturing industry is warning of an impending production crisis as rampant smuggling of scrap lead-acid batteries to neighbouring countries threatens to cut off the critical raw material needed to sustain local production.
Associated Battery Manufacturers (East Africa) Limited (ABM), the largest manufacturer of automotive and solar lead-acid batteries in East and Central Africa, says its collection of used batteries has declined by about 50 per cent, putting its operations and thousands of direct and indirect jobs at risk.
The company has blamed the sharp decline on the illegal export of scrap batteries, particularly to Tanzania, despite a ban on the export of the raw material through Kenya’s border points.
Group Managing Director Guy Jack warned that the company could be forced to suspend production if the smuggling is not urgently contained.
“This will put many direct and indirect jobs at risk and negatively affect local manufacturing, tax revenue and export earnings,” Jack said.
He said the illegal trade was undermining the ability of manufacturers to maintain steady production, while depriving the country of raw materials that could support a circular economy and local industrialisation.
Jack called on security agencies, particularly those operating at border points, to intensify surveillance and ensure suspected smugglers are prosecuted.