What scrap metal export licensing actually requires in Kenya

Kenya regulates scrap metal trading because unregulated scrap collection creates a market for stolen infrastructure. Rail fittings, transformer components and roadside barriers all have scrap value. The licensing regime exists to make the chain of custody traceable.

What a compliant exporter holds

Ministry of Trade licensing for the activity, dealer registration, and a record of where each consignment originated. The last item is the one informal operators cannot produce, and it is the one that matters most.

What a buyer should ask for

Ask to see the licence before the contract, not after. Ask how the material was graded and by whom. Ask for photographs of the material as graded rather than a generic yard photograph. A seller who treats those as unreasonable requests is telling you something.

Grading is where disputes start

Almost every scrap dispute we have seen traces back to grading rather than price. The buyer expected one grade and received another, and the disagreement surfaces after the vessel has sailed, when it is expensive. Grading at the yard, recording it, and sharing the record before loading removes the ambiguity while it is still cheap.

Where informal chains break

An informal chain can offer a lower price because it is not carrying the cost of compliance. That saving becomes a liability the moment a consignment is detained pending an origin enquiry. Detention costs more than the discount, and it delays every other shipment behind it.