President Ruto orders Tata Chemicals to leave Kenya

President William Ruto has ordered India’s Tata Chemicals to leave Kenya, escalating a dispute involving one of the country’s largest mineral exporters and Africa’s biggest soda ash producer.

Ruto, speaking in Swahili in Kajiado County on Thursday, accused Tata Chemicals Magadi of failing to sufficiently invest in the area despite operating at Lake Magadi for more than a century.

“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.

He said the government had identified new investors to take over operations and that Kenya should derive greater economic benefits from its mineral resources. Ruto said two new companies would be brought in, with the government seeking increased investment, local processing, and employment for Kenyans.

Tata Chemicals Magadi, part of India’s Tata Group, operates at Lake Magadi, about 120 kilometres southwest of Nairobi. The company produces more than 350,000 tons of soda ash annually, exporting to markets including India, Southeast Asia, the Middle East, and elsewhere in Africa.

The president’s announcement follows a July 28 government suspension of the company’s mining operations over alleged non-compliance with Kenya’s mining laws. Mining Cabinet Secretary Hassan Joho said at the time that operations would remain suspended until the company met its statutory obligations.

Tata Chemicals said last month that it had submitted all documents requested by Kenyan authorities and had demonstrated compliance with regulatory requirements. The company said the suspension was affecting about 500 employees as well as contractors, suppliers, and surrounding communities.

The company’s history at Lake Magadi dates to 1911, while a major mining lease with the Kenyan government was signed in 1928. Tata Chemicals acquired the operation in 2005 through its purchase of the UK’s Brunner Mond Group.

SOURCE: AA