President William Ruto has ordered Tata Chemicals to cease operations in Kenya, claiming the company had not benefited the country or contributed to local development.
Kenyan President William Ruto has issued an order for India's Tata Chemicals to halt operations in the country, citing a lack of benefit to Kenya and insufficient contributions to local industries. The president made these remarks during a visit to Magadi in Kajiado county, where Tata Chemicals operates a soda ash plant. According to the BBC, Ruto accused the company of exporting soda ash instead of processing it locally for glass and chemical production. Tata Chemicals has been present in Kenya for approximately 100 years but, as per the president, has done little to develop local industries.
The Indian company responded by expressing respect for Kenyan authority and committing to 'constructive engagement' through legal and regulatory channels to address outstanding issues. Tata Chemicals also emphasized its commitment to the well-being of employees, the Magadi community, stakeholders in Kenya, and continued economic development in the country. The company added that it had provided a comprehensive response to matters raised by the Kenyan government.
Tata Chemicals Magadi employs around 500 persons and claims its community programs benefit about 30,000 people around Magadi through water, healthcare, education, infrastructure, and other support, as reported by the BBC. However, Ruto criticized the company for not doing enough for Kenya and accused it of exporting the country's resources abroad.
Ruto announced plans to bring in two new companies to take over operations and process the mineral locally. Tata Chemicals is one of Kenya’s largest mineral exporters and Africa’s biggest soda ash producer, exporting more than 3.5 lakh tonnes of soda ash annually to markets including India, Southeast Asia, West Asia, and other parts of Africa.
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