Kenya Orders Tata Chemicals to Exit, Threatening Century-Old Soda Ash Operation

Nairobi, (XOL Africa) — President William Ruto says two new investors will take over Lake Magadi operations as his government seeks greater investment, local processing and jobs from Kenya’s mineral resources.

Kenyan President William Ruto ordered Tata Chemicals Magadi to leave the country, escalating a dispute over one of Kenya’s biggest mineral exporters and putting the future of a century-old soda ash operation in doubt.

Ruto said Thursday that his government had identified new investors to take over the operation at Lake Magadi in Kajiado County, about 120 kilometers (75 miles) southwest of Nairobi.

“Tata Chemicals Magadi has had a contract for 100 years, and they have done nothing,” Ruto said in remarks delivered in Swahili. “I told them the other day to pack up and leave.”

The government plans to bring in two companies, Ruto said, as Kenya seeks to increase investment, local processing and employment from its mineral resources.

The announcement comes after Kenya suspended Tata Chemicals Magadi’s mining operations over alleged non-compliance with the country’s mining laws. Mining Cabinet Secretary Hassan Joho said the suspension would remain in effect until the company met its statutory obligations.

Tata Chemicals said it had submitted documents requested by Kenyan authorities and maintained that it had demonstrated compliance with regulatory requirements. The suspension has affected about 500 employees, as well as contractors, suppliers and surrounding communities, the company said.

Soda Ash Producer

Tata Chemicals Magadi produces more than 350,000 tons of soda ash annually, exporting the mineral to India, Southeast Asia, the Middle East and other African markets.

The operation has been active at Lake Magadi since 1911. A major mining lease with the Kenyan government was signed in 1928, and Tata Chemicals acquired the business in 2005 through its purchase of UK-based Brunner Mond Group.

The company is part of Tata Group, one of India’s largest conglomerates.

Ruto’s move could force a restructuring of ownership and operating rights at one of Kenya’s longest-running mining operations. It also underscores the government’s push to extract more economic value from the country’s mineral deposits through investment and domestic processing.

The dispute comes as Kenya seeks to attract capital while increasing the contribution of its mining sector to the economy.

For Tata Chemicals, the president’s order adds a new level of uncertainty to an operation that has been central to the company’s presence in East Africa for more than two decades.