SAMBURU, Kenya — President William Ruto has announced a new government policy to end the export of unprocessed minerals and other raw materials, saying Kenya must process its natural resources locally to create jobs, retain wealth and increase the value of exports.
Speaking during a thanksgiving service in South Horr, Samburu County, on Sunday, Ruto said the government had decided that minerals extracted in Kenya should undergo processing before being exported.
“Going into the future, our position as the government. Whether we are talking about Magadi Soda or oil or all our minerals we have taken the decision that we will no longer export raw materials. We are going to process all minerals available in Kenya,” Ruto said.
He said the policy would cover a range of resources, including gold, limestone, iron ore, graphite, titanium and soda ash.
According to the President, local processing would allow Kenya to retain more value from its natural resources while creating employment opportunities for the country’s growing young population.
Ruto targets value addition
Ruto argued that exporting raw materials while importing finished or processed products deprives Kenya of jobs, investment and potential revenue.
He said the government would instead seek partnerships with investors to establish processing facilities within the country.
“It is the reason why we are working with Dangote to have an oil refinery in Lamu and working with others to have gold refineries because it is imprudent for any government to export raw materials, create jobs and value in other countries while we have a big population of young people who need jobs and whose value on adding to our products can make a big difference in our country,” he said.
The President said the strategy would be extended across the mining and extractive sectors as part of a broader push for industrialisation and domestic value addition.
The government expects local processing to create jobs, increase investment and allow more wealth generated from Kenya’s natural resources to remain within the country.
Dangote refinery forms part of strategy
Ruto cited the planned partnership with businessman Aliko Dangote as an example of the government’s approach to local value addition.
The project is expected to form part of the country’s efforts to expand its energy and industrial-processing capacity rather than relying primarily on the export of raw resources.
Ruto also said the government was working with other investors on gold-refining opportunities.
The President’s remarks suggest that the administration intends to encourage private-sector investment in processing infrastructure across multiple mineral and natural-resource sectors.
Ruto defends Tata Chemicals decision
The President also used the occasion to defend the government’s decision to remove Tata Chemicals Limited from its operations at Lake Magadi in Kajiado County.
Tata Chemicals has operated at Lake Magadi for more than a century, beginning in 1911 under the Magadi Soda Company before the business later came under Tata Chemicals.
The company extracts trona from Lake Magadi and processes it into natural soda ash, or sodium carbonate, which is used in the manufacture of glass, detergents and chemicals, as well as in water treatment.
Ruto argued that Kenya had not benefited sufficiently from the company’s operations because the country was effectively exporting its natural resources without retaining enough of the value generated from them.
He accused the company of exporting raw materials while benefiting from processing activities carried out elsewhere.
“We want to give five, six or even 10 companies an opportunity to use the resources there to create jobs, value, create wealth and reduce poverty,” Ruto said.
His comments indicate that the government’s preferred model is to attract multiple investors capable of processing resources locally and generating employment and industrial activity around extraction sites.
Tata Chemicals faces operational uncertainty
The government’s position comes after Tata Chemicals’ mining operations at Lake Magadi were suspended from July 28, 2026, following a directive by the Ministry of Mining, Blue Economy and Maritime Affairs over compliance and licensing issues.
The company has been a major producer and exporter of soda ash from Kenya, with its products serving markets in Southeast Asia, India, the Middle East and other international destinations.
Its operations have also made soda ash one of Kenya’s notable mineral exports.
The government’s decision has therefore raised broader questions about how Kenya balances foreign investment, mineral rights, export earnings and demands for local processing.
Ruto’s latest remarks make clear that value addition is now central to the government’s position on the future of extractive industries.
From mining to manufacturing
The policy represents a shift from viewing minerals primarily as sources of export revenue towards using them as inputs for domestic industrialisation.
For Kenya, the potential benefits include new processing plants, manufacturing jobs, increased tax revenues and the development of industries around mineral-producing regions.
However, implementing the policy will require significant investment in infrastructure, energy, technology and skilled labour.
Processing minerals locally can also be more expensive than exporting them in raw or semi-processed form, meaning the government will need to attract investors capable of operating commercially competitive facilities.
The policy will also require clear regulatory frameworks to give investors certainty while ensuring that communities and the government receive an appropriate share of the economic benefits.
Government seeks more investors
Ruto said Kenya would continue inviting private investors to participate in processing projects across the natural-resource sector.
His proposal to have several companies operate around Lake Magadi illustrates the administration’s preference for competition and investment rather than relying on a single operator.
“We want to give five, six or even 10 companies an opportunity to use the resources there to create jobs, value, create wealth and reduce poverty,” he said.
The approach could potentially transform areas with significant mineral deposits into industrial hubs if investors establish processing and manufacturing facilities close to extraction sites.
For communities in mining regions, the central question will be whether the policy translates into meaningful employment, local businesses, infrastructure and public revenue.
