Kenya orders Tata Chemicals to halt operations in the country

Kenyan President William Ruto has ordered Tata Chemicals to close down its operations in the country, accusing the Indian firm of failing to attract sufficient investment and industrial development despite holding the mining rights for nearly a century, Reuters reported.

Ruto made the announcement Thursday during a visit to Kajiado in southern Kenya where Tata Chemicals runs the Magadi soda ash business. Kenya said the operations would be taken over by two new firms, one expected to set up a glass manufacturing plant and the other to produce chemicals locally.

“That TATA company … had that contract for 100 years. They have not built anything in Kajiado, they have not built any factory in Kajiado,” said Ruto.

“We have said we will bring a new company and … they should put a big glass company here in Kajiado. And another company to make chemicals here in Kajiado. Are we slaves to other people?” he said.

The order escalates a dispute that started in late July when Kenya ordered Tata Chemicals’ local unit to stop mining at the Magadi Soda factory and stop exporting soda ash.

Tata Chemicals said on Thursday it respected the authority of the Kenyan government and was committed to “constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters.”

Its Kenyan unit had submitted a comprehensive response to regulatory concerns and was awaiting the government’s review, the company said.