Kenya has recently introduced a new spot metal market that is designed to provide a safe haven for scrap metal. The metals included in this market include gold, silver, copper and iron ore. However, traders have been complaining about the regulations and hefty fees. In an effort to curb the problems, the government is establishing a multi-agency vetting team that will examine each application. The team will be headed by a county commissioner.
Silver
In terms of value, the spot metal market for silver in Kenya is worth $X, a figure that includes both wrought and unwrought silver. It is a market that reflects the total revenues from producers and importers, excluding the cost of logistics and retail marketing. It also includes the margins of retailers. While the market is relatively small, it is expected to grow at a rate of approximately X percent a year.
Copper
The price of copper is a sensitive commodity, and the price fluctuates according to a number of fundamental factors. These factors include the state of the economy, potential supply issues, and the housing market, among others. In times of strong economic growth, demand for copper can increase due to infrastructure developments. However, during times of economic decline, projects requiring large amounts of copper may slow down or fail.
Gold
Kenyan investors can now participate in the international gold spot metal market through the Standard Investment Bank. The bank has a money manager licence from the CMA, which allows it to invest and trade commodities on behalf of clients. The bank requires a minimum deposit of Sh250,000 for a transaction to be completed. However, local investors must still purchase gold and silver in physical form or use offshore dealers that are not regulated by the Kenyan government.
Precious metals
The spot precious metals market in Kenya is a popular place for people to buy and sell precious metals. Prices can fluctuate widely depending on the demand and supply of the metal. The last quarter of the year sees a surge in demand around holidays and festivals around the world. This also results in higher prices.
Scrap metal exports to India
Kenya exports 13,000 tonnes of scrap metal every year and an average of 1,083 tonnes per month. The majority of Kenyan scrap metal exports go to India, with the United Arab Emirates and Thailand following close behind. Kenya exports a very small amount of scrap metal to Rwanda.
Scrap metal theft
Scrap metal theft is a major problem in Kenya, but the government is attempting to curb the problem by imposing a ban on the scrap metal market. The ban, which came into effect on 20 January, aims to stop thieves from destroying the country’s public utilities, road and rail infrastructure. Unlicensed traders face hefty fines and even jail sentences. They are also required to carry a license copy on their vehicles.
