President William Ruto has ordered Tata Chemicals to leave Kenya, accusing the company of benefiting from Magadi’s natural resources without doing enough for local communities.
Ruto said the government had identified new private investors who could take over the operations at Lake Magadi in Kajiado County.
The President made the remarks during his visit to Kajiado, where Tata Chemicals operates one of Kenya’s largest soda ash plants.
Ruto accuses Tata of failing to benefit Kajiado
Ruto said Tata Chemicals had been operating in Magadi for about 100 years but had not done enough to create industries and opportunities for residents.
He particularly criticised the company for exporting soda ash instead of doing more processing in Kenya.
According to Ruto, Kenya should benefit more from its natural resources through local manufacturing, jobs and investment.
The President said the government was ready to bring in new companies to develop the Magadi resources.
The factory in Kenya’s Magadi is Africa’s leading producer of natural soda ash
Tata Chemicals responds
Tata Chemicals said it respected the government’s position but maintained that it had contributed to Kenya’s economy.
The company said it had played an important role in the country’s economy since taking over the Magadi operation in 2005.
Tata also said it had responded to concerns raised by the Ministry of Mining and was waiting for the government to review its submissions.
The dispute comes weeks after the government directed Tata Chemicals Magadi to suspend operations over issues reportedly linked to royalty payments and other regulatory requirements.
Tata Chemicals exports soda ash
The company extracts trona from Lake Magadi and processes it into soda ash, which is used in the manufacture of glass, detergents, chemicals and other industrial products.
Tata Chemicals exports most of its soda ash to markets in India, Southeast Asia, the Middle East and other African countries.
Its 2024 accounts showed soda ash sales of about 245,000 tonnes, with the company recording approximately $78.7 million in turnover.
The company employs around 500 people and says its community programmes support about 30,000 residents around Magadi through areas such as healthcare, education, water and infrastructure.
Magadi plant has a long history
Mining activities at Lake Magadi date back to 1911, while a major mining lease with the Kenyan government was signed in 1928.
Tata Chemicals became the operator in 2005 after acquiring the UK-based Brunner Mond Group.
Kenya is among the world’s major producers of natural soda ash, a mineral widely used in industries such as glass manufacturing, chemicals and detergents.
The government’s planned change of investors could therefore have a major impact on jobs, investment and how Kenya benefits from the Magadi resources.
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