Kenyan President William Ruto has told Tata Chemicals to leave the country, accusing the company of failing to create enough local value from Kenya’s natural resources.
The Indian-owned company operates a major soda ash business at Lake Magadi in Kajiado County.
Ruto said Kenya should process more of the mineral locally instead of exporting much of it overseas.
Meanwhile, Tata Chemicals said it respects the government’s position. However, the company added that it would continue engaging with authorities through legal and regulatory channels.
Ruto targets Tata Chemicals Kenya operations
Tata Chemicals operates one of Kenya’s most important mineral businesses.
Its Lake Magadi operation sits about 120 kilometres southwest of Nairobi. The company exports soda ash to markets across Asia, the Middle East and Africa.
Kenya ranks as the world’s fourth-largest producer of natural soda ash, according to US Geological Survey data cited in the report.
The mineral has several industrial uses. For example, manufacturers use it to produce glass, chemicals, detergents and other products.
However, Ruto argues that Kenya should receive greater benefits from its natural resources.
He criticised Tata Chemicals for exporting soda ash instead of developing more processing capacity in Kajiado.
The president also said the government had identified two new companies that could take over the operations. He argued that the change could bring more jobs and investment to the area.
Tata Chemicals responds to Ruto
Tata Chemicals has defended its contribution to the Kenyan economy.
The company said its Magadi operation employs around 500 people. It also says community programmes support about 30,000 people through healthcare, water, education and infrastructure projects.
Still, the dispute extends beyond Ruto’s latest comments.
Five weeks earlier, Kenya’s mining minister directed Tata Chemicals Kenya to suspend operations. Reports linked that decision to concerns over royalty payments and other regulatory requirements.
The company said it had responded to the issues raised by the ministry. It also said it was waiting for authorities to review its submissions and provide further direction.
Therefore, the company’s final exit does not appear to be complete yet.
Lake Magadi operation dates back more than a century
Commercial activity at Lake Magadi has a long history.
Operations there date back to 1911. A major mining lease with the Kenyan government followed in 1928.
Tata Chemicals entered the business much later. It took control in 2005 after acquiring British chemical company Brunner Mond Group.
Today, the company is one of Kenya’s largest mineral exporters and a major producer of soda ash in Africa.
The dispute now raises questions about the future of the Lake Magadi operation and who could control one of Kenya’s most important mineral assets.