Ruto says new investors will be brought in to process Kenya’s soda ash locally and build glass and chemical manufacturing facilities in Kajiado County
Kenya President William Ruto has ordered Tata Chemicals to stop its operations in the country, accusing the Indian company of extracting soda ash from Lake Magadi without doing enough to process the resource locally. Ruto said the government would bring in two new companies to take over the operations and establish glass and chemical manufacturing facilities in Kajiado County.
Ruto made the remarks during a visit to Kajiado in southern Kenya, where Tata Chemicals Magadi (TCML) has operated a soda ash extraction facility for decades. He said the company had held a contract for about 100 years but had not built manufacturing facilities in the county.
“We have said we will bring a new company and… they should put a big glass company here in Kajiado. And another company to make chemicals here in Kajiado. Are we slaves to other people?” Ruto said at a rally.
The Kenyan president said the government wants companies extracting natural resources to process them locally rather than exporting raw materials. The proposed shift is aimed at increasing local value addition, creating jobs and retaining a larger share of the economic benefits from Kenya’s natural resources.
Lake Magadi Dispute Deepens
Ruto’s order follows a dispute between the Kenyan government and Tata Chemicals Magadi over the company’s operations at Lake Magadi. In late July, Kenya’s Ministry of Mining, Blue Economy and Maritime Affairs ordered TCML to suspend its mining operations and stop exporting soda ash.
TCML’s mining operations were suspended on 28 July, Tata Chemicals said. Following the suspension, the company said its Kenyan subsidiary submitted all the information, reports and documentation requested by the ministry.
The soda ash operations at Lake Magadi date back to 1911, when the site was operated under concessions granted to British company Brunner Mond. Tata Chemicals acquired the Magadi business in 2005.
Kajiado Governor Joseph Ole Lenku has also said the company’s long-standing mining rights expired in 2023, adding to the dispute over its continued operations.
Tata Chemicals Awaits Direction
Tata Chemicals said it respects the authority of the Kenyan government and remains committed to resolving the matter through legal and regulatory channels. “Since 2005, when Tata Chemicals acquired the Magadi plant, it has played an important role in the Kenyan economy and continues to be an integral part of our business,” the company said.
Tata Chemicals said TCML has provided a comprehensive response to the issues raised by the ministry, including information on its compliance with applicable regulatory requirements, and is awaiting further direction from the government.
“We respect the authority of the Government of Kenya and remain committed to constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters,” the company said.
It added that the welfare of its employees, the Magadi community and other stakeholders remained a priority, along with Kenya’s continued economic development.
Jobs Impact Raises Concerns
The proposed shutdown has also raised concerns about its potential impact on the local economy. Opposition leaders from the Democracy for Citizens Party have criticised the government’s handling of the dispute and warned that an abrupt closure could affect jobs and businesses linked to the operation.
Tata Chemicals Magadi is a major employer in the area, with opposition figures saying more than 500 direct jobs and thousands of related support positions could be affected.
Lake Magadi is an important source of soda ash, an industrial material used in products including glass, detergents and water-treatment chemicals. Ruto’s proposal to bring in new investors would shift the focus towards processing the resource within Kenya, including through glass and chemicals manufacturing.
For now, Tata Chemicals’ future at Lake Magadi remains uncertain, with the company awaiting further direction from the Kenyan authorities.
(Reuters Inputs)
