Kenyan President Ruto orders Tata Chemicals Magadi to leave country over lack of investment
Kenyan President William Ruto has ordered Tata Chemicals Magadi, one of the country’s largest mineral exporters and Africa’s leading soda ash producers, to leave the country, accusing the Indian-owned company of failing to invest adequately in its operations.
Speaking during a visit to Kajiado County, Ruto said Tata Chemicals Magadi had operated at Lake Magadi for more than a century but had failed to deliver sufficient investment to the region.
“Tata Chemicals Magadi has a 100-year contract and they have done nothing. The other day, I told them to pack up and leave,” Ruto said.
The president said the government had already identified new investors to take over the company’s operations, arguing that Kenya should derive greater economic benefits from its mineral resources.
“We said we would bring in new companies. I have already sent them,” Ruto said.
Ruto said two new companies would be brought into the area as part of the government’s plans to attract more investment, expand local production and create jobs for Kenyans.
Tata Chemicals Magadi operations
Tata Chemicals Magadi, part of India’s Tata Group, operates a soda ash production facility at Lake Magadi, about 120 kilometers southwest of Nairobi.
The company produces more than 350,000 tonnes of soda ash annually and exports the mineral to markets in India, Southeast Asia, the Middle East and other parts of Africa.
The Kenyan government suspended Tata Chemicals Magadi’s mining operations on July 28, citing alleged non-compliance with the country’s mining laws.
The dispute comes as the Kenyan government seeks to increase local investment and economic returns from the country’s mineral resources. (ILKHA)
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