Tata Chemicals asked to halt operations in Kenya: Why President William Ruto ordered the exit; 2 firms take over assets | Today’s news
Kenyan President William Ruto said on Thursday that his government had ordered Tata Chemicals to halt its operations in the country, citing that the Indian company’s presence did not bring enough value to Kenya, Reuters reported.
Ruto said two new companies would be brought in to take over the operations currently handled by Tata Chemicals.
The development follows a decision in late July when Tata said the Kenyan government had ordered its subsidiary Tata Chemical Limited to suspend operations at the Magadi Soda plant and stop exporting soda.
While visiting the region in southern Kenya, Ruto stated: “That TATA company… had a 100-year contract. They didn’t build anything in Kajiado, they didn’t build any factory in Kajiado.”
“We said we will bring in a new company and… they should put a big glass company here in Kajiado. And another chemical company here in Kajiado. Are we slaves to other people?” he asked.
The company was not immediately available for comment on President Ruto’s move, Reuters reported.
Kenya’s Ministry of Mines has asked Tata Chemicals Magadi Ltd. to cease operations about five weeks ago, citing unpaid license fees and failure to comply with regulatory requirements.
‘pack and go’
Kajiado Governor Joseph Ole Lenku also said the company’s mining rights expired in 2023. Kenya has been mining soda for more than a century, with Tata acquiring the operation from Brunner Mond Ltd in 2005.
He told a public meeting in Kajiado that any company that acquires soda ash mining rights in the future should set up local large-scale processing facilities, including glass and chemical plants.
“Those to whom we grant a license to extract the resource must build a huge glass processing facility here. They should build a large chemical factory here,” he was quoted as saying by Bloomberg.
“Come what may, because they have not been able to do what is required, I have told them to pack up and leave,” Ruto added.
What Tata Chemicals said
In July, Tata Chemicals maintained that it remains compliant with applicable regulations and is working with government authorities and relevant agencies to address the issue and ensure continued compliance with regulatory requirements.
Tata Chemicals said in a statement that it is “fully compliant with all required regulations and continues to cooperate with all authorities and agencies to maintain the highest standards of compliance”.
Kenya is the world’s fourth largest producer of natural sodium carbonate, contributing about 1% of global production, according to the US Geological Survey. The mineral, also called sodium carbonate, is widely used in products such as cleaning products and batteries for electric vehicles.
