Naema Celestine 
Brian Mang’oli
The construction and scrap metal industry decry high steel prices attributing the kenyans shilling strengthening against the us dollar which has resulted in a turn down in overall sales.
In January this year shillings had crossed the 160 ksh points against the us dollar to record its lowest level record at 163ksh in a life span of 3 months.The recent government decision to reduce the import declaration fee on imported raw material from 3.5% to 2.5% has resulted in significant financial losses for them.
The soaring steel costs have presented a major obstacle for businesses operating in the scrap metal industry and construction sector. As steel is a crucial component in their operations, the sharp increase in prices has directly affected their production costs
The scrap metal dealers are calling now upon the Ministry of trade and the scrap metal council to work closely to regulate the prices to create a level playing field.
The surge in steel costs and the weakening US dollar have raised serious concerns among players in the scrap metal industry and construction sector.
These challenges have had a significant impact on their profit margins, leading to a sense of growing apprehension within the industry. In response, industry players are calling for government intervention to implement measures that will regulate steel prices and ensure fair competition among all stakeholders
Government intervention could take various forms, such as imposing tariffs or quotas on steel imports, implementing price controls, or providing subsidies to offset the increased costs. These measures would aim to level the playing field and protect domestic businesses from unfair competition. However, the call for government intervention is not without its critics.
Some argue that such measures could distort the market and hinder free trade. They believe that businesses should adapt to market conditions and find innovative solutions to mitigate the impact of rising costs, rather than relying on government intervention.
Nevertheless, the urgency of the situation and the potential consequences for the scrap metal industry and construction sector cannot be ignored. The industry is at a critical juncture, and swift action is needed to address the challenges at hand. Only through a combination of government intervention and industry innovation can the sector hope to navigate these turbulent times and secure a sustainable future
