ABM Company Set to Close Following Uhuru's Order

Following President Uhuru Kenyatta's ban on scrap metal dealerships in the country, the Associated Battery Manufacturers (ABM) company is poised to close one of its operations.

ABM Company Set to Close Following Uhuru's Order

Guy Jack, ABM's Chief Executive Officer (CEO), announced to the media on Sunday, February 6 that the company's Ksh1 billion recycling factory in Athi River would close due to a scarcity of raw materials in the market.

He added that the business relies on scrap metals being recycled into the lead, which is then used to make batteries.

Furthermore, Jack stated that the facility's closure will have an impact on Kenyans who work there and have invested over Ksh1 billion in the factory over the years.

The CEO also said that Uhuru's decision was unclear, and he requested 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

“What has happened is local authorities, city councils, and police have incorrectly interpreted the export ban, and assumed it applies to local movement, which it does not,” he added.

Associated Battery Manufacturers (ABM) CEO Guy Jack posing for a photo.

Associated Battery Manufacturers (ABM) CEO Guy Jack. PHOTO FILE 

According to Jack, the business consumes around 2000 tonnes of lead, the majority of which comes from scrap metal from wrecked cars.

Uhuru banned the export and dealership of scrap metal while officiating the pass-out parade of police at the National Police College in Kiganjo, Nyeri County, on January 19.

As a result, several scrap metal dealers urged Uhuru to reconsider the government's position, claiming that many Kenyans will lose their jobs as a result.