Economic Imperative of Establishing Ship Breaking and Recycling Industry in Kenya

By Andrew Mwangura

Email, thecoastnewspaper@gmail.com

Kenya’s strategic location along the Indian Ocean, coupled with its growing blue economy ambitions, presents a unique opportunity to diversify its industrial base and unlock new economic potential.

One such opportunity lies in the establishment of a ship breaking and recycling industry. This sector, often overlooked, holds immense economic value, environmental benefits, and the potential to position Kenya as a regional leader in sustainable maritime practices.

Need for Ship Breaking Industry in Kenya

Globally, the ship breaking and recycling industry is a multi-billion-dollar sector, with countries like India, Bangladesh, and Turkey dominating the market.

These nations have capitalized on the demand for dismantling end-of-life vessels, recovering valuable materials such as steel, copper, and aluminum, and creating thousands of jobs in the process.

Kenya, with its extensive coastline and access to international shipping routes, is well-positioned to tap into this lucrative industry.

The need for such an industry in Kenya is multifaceted.

First, the global shipping industry generates a significant number of decommissioned vessels annually.

These ships, if not properly recycled, can become environmental hazards, leaking toxic materials into oceans and coastlines.

By establishing a ship breaking industry, Kenya can address this global challenge while creating a new revenue stream.

Second, Kenya’s construction and manufacturing sectors are heavily reliant on imported steel and other metals.

A ship breaking industry could provide a domestic source of recycled steel, reducing reliance on imports and lowering costs for local industries.

This would not only bolster Kenya’s industrial capacity but also contribute to the country’s broader economic goals under the Vision 2030 framework.

Economic Value of Ship Breaking and Recycling

The economic benefits of a ship breaking and recycling industry are substantial. For starters, the industry is labor-intensive, requiring a large workforce for dismantling, sorting, and processing materials. 

This could create thousands of jobs, particularly in coastal regions where unemployment rates are often high.

These jobs would range from low-skilled positions to highly specialized roles in engineering and environmental management, providing opportunities for a diverse workforce.

Moreover, the recovered materials from ship breaking—such as steel, iron, and non-ferrous metals—can be sold domestically or exported, generating significant revenue.

For instance, a single large vessel can yield up to 95% recyclable materials, with steel alone accounting for the majority.

Given the global demand for recycled metals, Kenya could establish itself as a key supplier in the region, attracting foreign investment and fostering economic growth.

The industry also has the potential to spur the development of ancillary sectors, such as logistics, waste management, and metal fabrication.

This would create a multiplier effect, further boosting Kenya’s economy and contributing to the government’s industrialization agenda.

Environmental and Social Importance

Beyond its economic value, a ship breaking and recycling industry aligned with international environmental standards could position Kenya as a leader in sustainable maritime practices.

Currently, many ships are dismantled in developing countries with lax environmental regulations, leading to severe ecological damage and health risks for workers.

By adopting best practices and investing in green technologies, Kenya could set a new standard for responsible ship recycling in Africa.

This approach would not only protect Kenya’s coastal ecosystems but also enhance its global reputation as a responsible maritime nation.

It would align with the country’s commitments under international environmental agreements, such as the Basel Convention, which regulates the transboundary movement of hazardous waste.

Additionally, the industry could contribute to Kenya’s social development by providing training and employment opportunities for marginalized communities, including women and youth.

By integrating social safeguards and community engagement into the industry’s development, Kenya could ensure that the benefits of ship breaking are equitably distributed.

Challenges and the Way Forward

While the potential benefits are clear, establishing a ship breaking and recycling industry in Kenya is not without challenges.

Significant investment in infrastructure, such as dry docks and waste treatment facilities, would be required.

Additionally, the industry would need robust regulatory frameworks to ensure compliance with environmental and labor standards.

To overcome these challenges, the Kenyan government should consider public-private partnerships to attract investment and expertise.

Collaborating with international organizations and industry leaders could also provide the technical know-how needed to establish a world-class ship breaking facility.

Furthermore, the government should prioritize the development of a comprehensive policy framework that addresses environmental, safety, and labor concerns.

This would not only safeguard Kenya’s natural resources but also ensure the industry’s long-term sustainability.

The establishment of a ship breaking and recycling industry in Kenya represents a unique opportunity to drive economic growth, create jobs, and promote sustainable development.

By leveraging its strategic location and embracing best practices, Kenya can position itself as a regional hub for responsible ship recycling, setting an example for other African nations.

The time is ripe for Kenya to chart a new course in its blue economy journey, and the ship breaking industry could be the anchor that secures its maritime future.

The writer is a Maritime Analyst and Maritime Policy Advocate.