President William Ruto has explained his decision to order Tata Chemicals Magadi to leave Kenya, accusing the company of exploiting Kajiado’s resources without doing enough for the local community.
Speaking in Kajiado on Thursday, September 3, Ruto said Tata had operated in the area for more than 100 years but had failed to establish industries or create enough opportunities for residents.
“That Tata company has had the contract for 100 years, yet it has not built anything in Kajiado. It has not established a factory here, and it has not employed our people,” Ruto said.
The President accused the company of extracting resources from Lake Magadi and shipping them to India and other markets instead of adding more value locally.
“They come here, take our wealth and resources, and ship them to India and elsewhere,” he said.
Ruto said Kenya could no longer allow foreign companies to extract local resources without creating industries and jobs in the areas where the resources are found.
He said the government would bring in a new investor to take over the resource, but with stricter conditions.
“We will bring in a new company, but the conditions for that company will be clear,” Ruto said.
According to the President, the new investor will be required to establish a large glass manufacturing plant and a chemical processing facility in Kajiado.
The move, he said, is aimed at ensuring that Kajiado residents benefit directly from the resources found in their county.
“Are we slaves to other people?” Ruto asked, insisting that Kenya must use its natural resources to build local industries.
Tata Chemicals Magadi has operated at Lake Magadi since 1911 and is one of Kenya’s major soda ash producers. The company extracts trona from the lake and processes it into soda ash, which is used in the manufacture of glass, detergents and chemicals.
The President’s announcement comes about a month after the government suspended the company’s mining operations.
Mining Cabinet Secretary Hassan Joho said in July that the suspension followed unresolved compliance issues, including royalty payments, mineral beneficiation, export reporting, community development agreements, local employment and environmental requirements.
Tata Chemicals later said it had submitted the information and documents requested by the Ministry of Mining and was awaiting further direction. The company said its operations had remained suspended since July 28.
Ruto has now made clear that the government wants a different model for the resource, with processing and manufacturing taking place in Kajiado rather than simply extracting and exporting the minerals.
The President said the change would help create jobs, boost manufacturing and ensure local communities get greater economic benefits from Kenya’s natural resources.
