Reviving old materials

The informal sector runs on scrap. This introduces several interesting dynamics into the sector. First, it links microenterprises to the big guns, some of which supply a steady stream of factory waste, while others scoop up the materials for recycling. Second, it minimizes the ecological footprint of an otherwise sprawling phenomenon by encouraging reuse and repair. Note that this is not intentional: many jua kali would prefer to use higher quality materials. Others, though, find that using cheap materials actually works well with export markets, particularly in art. Of course, relying on scrap forever isn’t necessarily sustainable, judging by the clouds of black smoke trailing behind most vehicles.

Welcome to the world of the scrap dealer. Samuel manages this scrapyard, which supplies the Racecourse sector and surrounding areas with materials. He buys materials directly from businesses in the area or on site from individuals and middlemen. His two employees are then charged with the task of sorting plastic from metal. He then sells what he can directly to local businesses. He buys plastic at KSH7(USD0.09)/kg and sells at KSH10(USD0.13)/kg. He buys metal for KSH12(USD0.16)/kg and sells at KSH15(USD0.20)/kg, quite a bit lower than I’ve heard reported. But maybe I’m looking in the wrong places.

Anything he can’t move, he sells to formal businesses for recycling. Steel companies like Rolmil, Devki, and Steel Yard have vertically integrated to include metal recycling. They scoop up metal from small dealers like Samuel, melt down the materials, and reform them into usable parts for the construction industry.

Samuel’s biggest problem is thievery, but not from his scrapyard. Sometimes he buys parts only to find the original owner pay a visit soon after claiming the parts had been stolen from his property!