The Kenyan government has ordered Tata Chemicals, one of India’s major chemical companies, to leave the country, accusing the firm of failing to generate sufficient economic benefits from its operations.
President William Ruto, while speaking during a visit to Kajiado County, where Tata Chemicals Magadi operates, said the company had been exporting soda ash without doing enough to process the mineral locally.
Ruto reportedly directed the company to “pack up and leave”, insisting that Kenya needed investors who would create more jobs and promote local industrial development.
“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.
“They have not built anything in Kajiado, they have not built any factory in Kajiado.”
The president said the government had identified two new investors to take over the company’s operations, with the aim of increasing employment and investment opportunities for Kenyans.
Tata Chemicals, however, said it respected the government’s position and remained committed to resolving the dispute through legal and regulatory channels.
The company said that since acquiring the Magadi operation in 2005, it had “played an important role in the Kenyan economy” and remained an integral part of its business.
Tata Chemicals Magadi operates at Lake Magadi, about 120 kilometres southwest of Nairobi, and extracts trona, a naturally occurring mineral, which it processes into soda ash.
The company exports more than 350,000 tonnes of soda ash annually to markets including India, Southeast Asia, the Middle East and other African countries.
Kenya is the world’s fourth-largest producer of natural soda ash, accounting for about one per cent of global production. Soda ash is widely used in the manufacture of glass, chemicals, detergents, batteries, paper and other industrial products.
Tata Chemicals is one of Kenya’s largest mineral exporters and Africa’s biggest soda ash producer. Its 2024 accounts reported about 245,000 tonnes of soda ash sales and a turnover of $78.7 million.
The company employs approximately 500 people and says its community development programmes benefit about 30,000 residents around Magadi through support for water supply, healthcare, education and infrastructure.
The latest dispute follows a directive by Kenya’s mining ministry about five weeks ago ordering Tata Chemicals Magadi to suspend operations, reportedly over alleged failure to pay royalties and meet other regulatory requirements.
Tata Chemicals said it had submitted a comprehensive response to the issues raised by the ministry, including details of its compliance with applicable regulations, and was awaiting further review and direction.
The Magadi operation dates back to 1911, while a major mining lease was signed with the Kenyan government in 1928. Tata Chemicals acquired the operation in 2005 after purchasing the UK-based Brunner Mond Group.
Ruto’s latest comments signal a tougher stance by the Kenyan government on the local processing of natural resources and the economic obligations of foreign companies operating in the country.
