Mining and Blue Economy Cabinet Secretary (CS) Hassan Joho has defended the government’s decision to suspend the operations of Tata Chemicals Magadi.
The vocal CS said that Kenya’s mineral resources must be used to drive economic growth, promote local industries and deliver direct benefits to communities.
Joho added that the decision to suspend the company’s licence was communicated in July following lengthy consultations over its operations and compliance with Kenyan laws.
He noted that the government was concerned about the distribution of land and economic benefits around the Magadi mining area, claiming Tata Chemicals controls more than 200,000 acres of land, while the local community owns about 8,000 acres.
The Cabinet Secretary also raised concerns over the way soda ash extracted from Lake Magadi is processed and marketed.
He said that under the Mining Act of 2016, the company has been paying a three per cent benefit, but argued that Kenya could derive greater value from the mineral through increased local processing and manufacturing.
According to Joho, soda ash extracted in Magadi is exported to India for further processing, with some products subsequently imported back into Kenya at higher prices for use by local glass manufacturers.
He said the government wants to change this model by encouraging value addition within Kenya.
Joho said the government will advertise new mining opportunities at Lake Magadi, requiring interested companies, including Tata Chemicals, to submit fresh applications.
He said applicants will have to demonstrate how their proposed operations will contribute to economic growth, create employment and ensure local communities benefit more directly from the mineral resources.
The move follows strong criticism from President William Ruto over the long-running arrangement with Tata Chemicals.
Ruto has argued that the agreement has not delivered sufficient benefits to Kenya despite the company’s decades-long presence at Magadi.
The head of state has said the government wants to open up the Magadi area to more investors, arguing that the mineral resources there have the potential to attract several major investors and generate more jobs and industrial activity.
Tata Chemicals, part of India’s Tata Group, operates at Lake Magadi in Kajiado County, about 120 kilometres southwest of Nairobi.
The company extracts trona from the lake and processes it into soda ash, a mineral widely used in glass manufacturing, detergents, chemicals, water treatment and other industries.
The company is one of Kenya’s major mineral exporters and a leading soda ash producer in Africa, exporting hundreds of thousands of tonnes of the mineral annually to international markets.
Its operations also provide employment and community programmes in the Magadi area.
Tata Chemicals has said it respects the government’s decision and remains committed to engaging through the appropriate legal and regulatory channels to address outstanding issues.
