NAIROBI, Kenya — The government has opened negotiations with Tata Chemicals Magadi Limited, days after President William Ruto ordered the company to shut down its operations and leave Kenya.
Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Joho said he held talks with the company’s executives on Tuesday following the suspension of its operations.
The discussions centred on compliance concerns previously raised by the ministry.
Joho announced that the government and Tata Chemicals had agreed to establish a high-level technical committee to review the outstanding issues and recommend the next course of action.
The committee will be led jointly by the Principal Secretary for Mining on behalf of the government and the chief executive officer of Tata Chemicals Magadi Limited on behalf of the company.
According to Joho, the team will examine five key areas: mineral beneficiation and value addition within Kenya, outstanding community benefits and royalty obligations, unresolved land disputes, opening the area to multiple mineral extraction, and pending matters involving the Kajiado County Government.
It will then prepare a report for the Cabinet Secretary’s consideration and further direction.
“As government, we remain committed to constructive engagement with investors while firmly upholding Kenya’s laws, regulations and the interests of its people,” Joho said.
He said the government was seeking a sustainable framework that would promote responsible mining, local value addition, community development and mutually beneficial partnerships.
Ruto ordered company to shut down
The negotiations come days after President Ruto told a public rally in Kajiado that Tata Chemicals should close its operations and leave the country.
Ruto accused the company of extracting resources from Lake Magadi for decades without delivering adequate employment, industries or development to the local community.
“They have not built anything in Kajiado. They have not built any factory or employed people,” Ruto said.
“I told them to pack and leave. They have been taking our resources and shipping them to India.”
The President said the government would bring in new investors on condition that they establish glass and chemical manufacturing plants in Kajiado instead of exporting raw materials.
Tata Chemicals subsequently said it respected the government’s authority and remained committed to resolving the outstanding matters through legal and regulatory channels. The company maintained that it had complied with applicable requirements.
Gachagua defended Tata Chemicals
DCP leader Rigathi Gachagua opposed the proposed removal of the company, warning that the move could damage Kenya’s reputation among international investors.
Gachagua said Tata Chemicals had operated in Kenya for decades and made economic and social contributions to the Magadi community. He challenged the government to address any genuine compliance concerns through established legal and regulatory procedures.
The former deputy president also accused individuals within the government of pressuring the company to pay Sh9 billion or surrender a 40 per cent stake in its Kenyan operations. He did not publicly provide evidence supporting the accusation, and the government has not confirmed it.
Gachagua further argued that replacing Tata Chemicals without public participation would undermine the interests of the Maasai community. He said residents should be involved in choosing any investor permitted to exploit resources at Lake Magadi.
The formation of the technical committee signals that the company’s future will now be subjected to further negotiations and review, despite Ruto’s earlier declaration that it should shut down and leave Kenya.
