President William Ruto has defended the government’s decision to suspend Tata Chemicals Magadi Limited’s mining operations, saying Kenya has not received enough economic benefits from the company’s long-term exploitation of resources at Lake Magadi.
Ruto said the government would seek a new investor to exploit the resources at Lake Magadi, but under stricter conditions aimed at creating jobs and promoting local manufacturing.
Speaking in Kajiado County on Thursday, September 3, 2026, the President said the new investor would be required to establish processing and manufacturing industries within the county.
Ruto said Tata Chemicals had operated at Lake Magadi for more than 100 years but had failed to establish significant manufacturing industries in Kajiado.
“We have Lake Magadi, we have a big company, we have resources that can change Kajiado County and Kenya as a whole. Tata Chemicals Company, which is here in Kajiado, has been running its contract for over 100 years,” Ruto said.
The President questioned the benefits that residents had received from the company’s long-term operations.
“They have not constructed anything in Kajiado, including even employing people here. I recently told them to vacate and get out of this country. Let them go. They have been taking our resources to India,” he added.
Ruto said Kenya would no longer allow investors to extract natural resources without creating industries and employment opportunities in host communities.
The President said the government would introduce new conditions for any company seeking to exploit resources at Lake Magadi.
“We have said we are bringing in a new company, and the new ruling for the new company is that they must establish a glass processing company here and also another company for processing chemicals here in Kajiado,” Ruto said.
The proposed arrangement would require investors to undertake value addition locally instead of exporting raw materials or processed resources without sufficient industrial benefits for the county.
Ruto said the approach would help Kajiado residents benefit through employment, manufacturing and new business opportunities.
Ruto’s remarks came amid growing opposition from MPs allied to the Democracy for the Citizens Party (DCP) over the government’s decision to shut down Tata Chemicals’ operations.
In a statement issued on September 3, the lawmakers described the directive by the Ministry of Mining as “economically suicidal” and “legally rogue”.
“From the outset, we condemn reckless, economically suicidal, and legally rogue directive by the Ministry of Mining to forcefully shut down Tata Chemicals Magadi Limited,” the MPs said.
The lawmakers warned that the closure could result in significant job losses and affect thousands of people who depend on the company and its wider economic activities.
They pointed to more than 500 direct employees and thousands of contractors, suppliers, transporters and other support workers whose livelihoods are connected to the company.
Tata Chemicals has also said about 500 employees and their families, alongside contractors, suppliers, transporters and local businesses, depend directly or indirectly on its operations.
The company has further stated that about 30,000 people in the Magadi community benefit directly from its support in areas such as water, healthcare, education, infrastructure and community development.
The DCP lawmakers also alleged that the Magadi area contains potentially valuable lithium deposits and oil prospects.
“The flimsy excuses given are just a decoy; the truth of the matter is, there are huge deposits worth trillions of shillings of LITHIUM metals underneath the Magadi area,” the MPs alleged.
They further claimed that there were oil prospects within the wider area where Tata Chemicals operates.
The lawmakers accused the government of seeking greater control over natural resources and suggested that the closure could pave the way for new investors.
“Now you want lithium and oil in Magadi. Mr President, how much is enough? How much?” they asked.
The allegations were not accompanied by evidence in their statement.
The lawmakers also raised concerns over the possible impact of the closure on water supply in Magadi.
They said residents had historically relied on water services associated with Tata Chemicals, warning that shutting down the company could worsen an existing water shortage.
“Before independence, people used to fetch water in Enkuruman water springs areas, but since then, they have been getting water from the Tata Chemicals; the residents are facing a water crisis,” the MPs said.
“We are staring at loses of human lives,” they added.
The lawmakers also questioned how Nairobi’s water treatment system would access the soda ash required to treat water if Tata Chemicals’ operations remained suspended.
“Show the people of Nairobi Water and sewerage company where they will get an average of 360 tonnes of soda ash every month to treat water for the people,” they said.
Tata Chemicals describes itself as Africa’s largest soda ash manufacturer and one of Kenya’s leading exporters.
Its Magadi operation produces natural soda ash from trona deposits at Lake Magadi.
The company has maintained that its operations support thousands of livelihoods in Magadi through employment, contractors, suppliers, transporters and local businesses.
It has also highlighted its contribution to community programmes, including water supply, healthcare, education, infrastructure and other development projects.
The Ministry of Mining suspended Tata Chemicals’ mining operations in July over alleged regulatory non-compliance.
The concerns reportedly included royalties, community development agreements, local employment and beneficiation.
Tata Chemicals has maintained that it submitted the requested documentation and demonstrated compliance with the applicable requirements.
The dispute has also revived long-standing concerns from sections of the Magadi community over employment opportunities, royalties, infrastructure and the implementation of community development agreements.
Some residents have supported the government’s decision to suspend the company’s operations while calling for a greater share of the economic benefits from the area’s natural resources.
Ruto’s position is that Kenya must obtain greater economic value from its natural resources.
The President wants investors to establish industries close to areas where resources are extracted.
In the case of Lake Magadi, his proposed model would require a new investor to establish glass and chemical processing facilities in Kajiado.
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