NAIROBI, Kenya- The closure of Tata Chemicals Magadi Limited has triggered a political storm, with Democratic Congress Party (DCP) leaders led by Senator John Methu questioning the reasons behind the government’s decision to suspend the company’s mining operations.
The Ministry of Mining, Blue Economy and Maritime Affairs ordered the suspension on July 28, 2026, citing regulatory non-compliance.
The government listed unresolved issues including royalty payments, export reporting, mineral beneficiation and value addition, community development agreements, employment and skills transfer, local procurement and environmental compliance.
Tata Chemicals later said it had submitted the information and documentation requested by the ministry and was awaiting further direction. The company said its operations had remained suspended since July 28.
But DCP leaders have offered a sharply different explanation.
In their statement on Thursday, September 3, the leaders alleged that the regulatory concerns were merely a “decoy” and claimed the real issue was the natural resources beneath and around the Magadi operation.
“The truth of the matter is, there are huge deposits worth trillions of shillings of LITHIUM metals underneath the Magadi area,” Methu said, according to the statement.
The leaders also claimed there were significant oil prospects in the area and questioned whether the suspension could ultimately pave the way for changes in ownership or new investors.
Methu accused the government of seeking to “create a crisis by throwing out Tata Chemicals or get a majority of shareholding, bring in his Gulf energy associates to do oil exploration and cash away with the fortune,” according to the statement.
The allegations have not been substantiated with evidence in the DCP statement.
The political leaders further argued that the suspension was disproportionately affecting workers and the surrounding community, with more than 500 direct employees and thousands of support workers facing uncertainty.
Tata Chemicals has separately said approximately 500 employees and their families, contractors, suppliers and local businesses depend directly or indirectly on its operations, while about 30,000 people in Magadi benefit from company-supported water, healthcare, education, infrastructure and community development.
