President William Ruto has announced that the government will end Tata Chemicals Magadi’s operations in Kenya, accusing the company of taking advantage of resources in Kajiado County without giving enough back to the local community.
Speaking in Kajiado on Thursday, September 3, Ruto said the multinational had operated around Lake Magadi for more than 100 years but had failed to create enough jobs, industries and other economic opportunities for residents.
Ruto said the government had already identified a new investor who would be expected to operate under different conditions, including processing minerals locally instead of exporting raw materials for processing elsewhere.
“We have Lake Magadi, we have a big company, we have resources that can change Kajiado County and Kenya as a whole. Tata Chemicals Company, which is here in Kajiado, has been running its contract for over 100 years,” Ruto said.
“They have not constructed anything in Kajiado, including even employing people here. I recently told them to vacate and get out of this country. Let them go. They have been taking our resources to India,” he added.
The President said the new investor would be required to establish a glass processing plant and a chemical processing company in Kajiado. The move, he said, would create jobs for local residents while ensuring that more value is generated within Kenya.
Ruto’s announcement follows growing pressure from the government over Tata Chemicals Magadi’s compliance with mining regulations.
In July, Mining Cabinet Secretary Hassan Joho ordered the company to suspend its mining operations until it addressed outstanding compliance issues. The directive followed years of discussions between the State Department for Mining and the company over its statutory obligations.
The government raised several concerns, including unresolved royalty payments and reconciliation, inadequate export reporting and the lack of a clear strategy for mineral beneficiation.
Officials also pointed to concerns surrounding community development agreements, employment and skills transfer for Kenyans, procurement of local goods and services, as well as environmental compliance.
The latest directive signals a tougher position by the government on the exploitation of Kenya’s natural resources, with Ruto insisting that communities where minerals are found must see clear economic benefits.
Tata Chemicals Magadi, valued at about Ksh10 billion, is one of Africa’s major producers of soda ash and salt.
The company is owned by Tata Chemicals Limited, which is part of India’s Tata Group.
The future of the company’s operations now appears uncertain, with the government moving towards a new arrangement that places greater emphasis on local processing, employment and economic benefits for Kajiado residents.
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