The Council noted, Sept. 8 -- On July 1, the Finance Act, 2026 came into force. On August 21, barely 52 days later, the Scrap Metal Council (SMC), through its chairperson, issued a desperate press release.

" Increase in the number of dealers operating without valid licences... cases of importation and exportation of scrap metal without the requisite permits... increasing cases of illegal exportation and smuggling of lead-acid batteries whose export is currently prohibited."

The council is not complaining about a market glitch. It is documenting the collapse of a regulatory regime. And he is right.

The Finance Act, 2026, by exempting scrap metal from Valued Added Tax (VAT), has not formalised the sector. It has criminalised it. KRA must...