The government has formed a high-level committee to address outstanding issues surrounding the suspension of operations at Tata Chemicals Magadi Limited in Kajiado County.
The move comes weeks after President William Ruto ordered the company to stop its operations, accusing it of failing to provide enough value to Kenya and the local community from the minerals extracted in Magadi.
Mining and Blue Economy Cabinet Secretary Hassan Joho said the committee was formed after he held talks with the company’s executives over the compliance concerns raised by the government.
In a statement issued on Tuesday, September 8, Joho said the committee will be jointly led by Mining Principal Secretary Harry Kimtai and the Chief Executive Officer of Tata Chemicals Magadi.
“Following the suspension of operations at Tata Chemicals Magadi Limited, today at my office I led a fruitful engagement with the Company’s executives regarding the compliance concerns we raised as a Ministry,” Joho said.
The committee will carry out a detailed review of the issues that remain unresolved and submit its findings to Joho for further direction.
Among the matters it will examine are mineral beneficiation and value addition within Kenya, outstanding community benefits and royalty payments, as well as unresolved land issues.
The committee will also explore the possibility of opening up the Magadi area to other companies involved in mineral extraction and work towards resolving outstanding issues between Tata Chemicals Magadi and the Kajiado County Government.
Joho said the government was willing to engage investors but would not compromise on Kenyan laws or the interests of local communities.
“The objective is not only to resolve the outstanding compliance matters but also to establish a sustainable framework that promotes responsible mining, value addition, community development and mutually beneficial partnerships,” the CS said.
The formation of the committee marks a shift towards negotiations following Ruto’s directive to shut down the company’s operations.
The President had said Magadi should be opened up to competition, with companies expected to establish factories in Kenya and add value to minerals locally instead of simply exporting raw materials.
Ruto’s directive came amid concerns over how Kenya and communities in Kajiado have benefited from the extraction of minerals in the area.
Tata Chemicals Magadi, which has operated in the area for decades, is one of Kenya’s major producers of soda ash, a mineral used in the manufacture of glass, detergents and other products.
The committee is now expected to assess the outstanding concerns and recommend a way forward as the government seeks to balance investment, local community interests and its push for greater value addition in the mining sector.