'They have not built anything': Kenya President orders Tata Chemicals to halt operations

Nairobi: Kenyan President William Ruto has ordered Tata Chemicals to halt its operations at Lake Magadi in Kajiado, accusing the Indian company of failing to deliver sufficient local investment, jobs and industrial development despite its long presence in the region.

Ruto made the announcement on Thursday during a visit to Kajiado in southern Kenya. He said the government would bring in new companies to take over the operations and establish manufacturing facilities in the area.

“That TATA company ... had that contract for 100 years. They have not built anything in Kajiado, they have not built any factory in Kajiado,” Ruto said, according to Reuters.

He said the government wanted Kenya's natural resources to create jobs and support local industries rather than simply being extracted and exported for processing elsewhere.

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What is behind the dispute?

The latest order follows a directive issued in July, when Tata Chemicals said its Kenyan unit had been instructed to suspend operations at the Magadi Soda factory and halt soda ash exports.

Tata Chemicals operates the Magadi Soda business, which extracts and processes trona from Lake Magadi to produce natural soda ash, or sodium carbonate. The chemical is widely used in glass manufacturing, detergents, chemicals and water treatment.

The operation has been running at Lake Magadi since 1911, when it began as the Magadi Soda Company. Tata Chemicals acquired the business in 2005.

Kenya seeks local manufacturing

Ruto has argued that Kenya should retain more of the economic value generated from its natural resources by developing processing and manufacturing industries locally.

He said new investors would be expected to establish facilities such as a glass factory and a chemical plant in Kajiado, creating jobs and expanding industrial activity in the region.
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Opposition raises concerns

The decision has also drawn criticism from Kenya's Democracy for the Citizens Party, which accused the government of economic sabotage and questioned the reasons behind the move.

The opposition party claimed the closure could affect livelihoods in the Magadi area and raised concerns about possible lithium deposits and oil exploration prospects in the region. It also warned that disruption to soda ash supplies could affect water-treatment operations.

Kenya's Mining Cabinet Secretary Hassan Joho has said the government had attempted to engage Tata Chemicals for years and accused the company of non-compliance.

Tata Chemicals has not immediately commented on Ruto's latest announcement.