Kenyan President William Ruto has ordered India-owned Tata Chemicals to leave the country, accusing the company of failing to deliver sufficient investment and economic benefits despite operating at Lake Magadi for more than a century.
Speaking in Kajiado County on Thursday, Ruto said his government had identified new investors to take over soda ash production at the site, which is home to one of Kenya’s largest mineral-export operations.
“Tata Chemicals Magadi has had a contract for 100 years, and they have done nothing. I told them the other day to pack up and leave,” Ruto said in remarks delivered in Swahili.
The president said two companies would be brought in to replace Tata Chemicals, with the government seeking greater investment, increased domestic processing and more employment opportunities for Kenyans.
“We have said we are bringing in new companies. I have already sent them away,” he added.
Tata Chemicals Magadi, part of India’s Tata Group, operates at Lake Magadi, approximately 120 kilometres southwest of Nairobi. The company produces more than 350,000 tonnes of soda ash annually and exports to India, Southeast Asia, the Middle East and other African markets.
Ruto’s announcement marks a sharp escalation in a dispute between the company and Kenyan authorities. On July 28, the government suspended Tata Chemicals Magadi’s mining operations over alleged violations of the country’s mining regulations.
Mining Cabinet Secretary Hassan Joho said the suspension would remain in place until the company fulfilled its legal and regulatory obligations.
Tata Chemicals has disputed the allegations, saying it submitted all documents requested by the authorities and demonstrated compliance with the applicable requirements.
The company warned that the suspension was affecting around 500 employees, as well as contractors, suppliers and communities that depend on the Lake Magadi operation.
Commercial soda ash production at Lake Magadi began in 1911, while a major mining lease was signed with the Kenyan government in 1928. Tata Chemicals acquired the business in 2005 as part of its purchase of Britain’s Brunner Mond Group.
