Kenya moves to end century-long operation of India's Tata Chemicals

Kenya has moved to end Tata Chemicals’ more than century-long operation at Lake Magadi, with President William Ruto ordering the company to shut down its activities at the soda ash extraction site in Kajiado County.

Speaking in Kajiado County, Ruto criticised the company’s long-standing presence in the area and questioned the benefits it had brought to the local economy, Caliber.Az reprots, citing foreign media.

“That company had that contract for 100 years,” Ruto said. “They have not built anything in Kajiado. They have not built any factory in Kajiado. Are we slaves to other people?”

The government plans to revoke Tata Chemicals’ license and transfer the soda ash reserves to two new operators. Ruto outlined that any new investor would be required to establish a glass manufacturing plant and a chemical factory in Kajiado County before exporting soda ash from Kenya.

Tata Chemicals made clear that it respects the authority of the Kenyan government and remains committed to pursuing legal channels, while prioritising its local employees and community members.

The dispute comes against the backdrop of extraction agreements dating back to British colonial rule, under which foreign companies developed Lake Magadi’s natural resources for export. Critics argue that such arrangements have allowed raw materials to be shipped abroad for processing while surrounding communities have received limited industrial development and infrastructure.

Kenya’s move follows similar efforts elsewhere in Africa to limit exports of unprocessed natural resources. Zimbabwe has restricted raw lithium exports to encourage domestic refining, Namibia has imposed restrictions on exports of unprocessed critical minerals, including rare earths, while Ghana has introduced policies aimed at increasing domestic processing of bauxite into aluminum.

Ruto’s stance reflects a broader push among African governments to retain more value from their natural resources by requiring processing and manufacturing to take place domestically.

Such policies, however, carry risks. Critics warn that abrupt contract cancellations can undermine investor confidence, trigger international arbitration and threaten local jobs. Tata’s departure could also affect regional water-treatment operations that rely on soda ash from Magadi, while opponents question whether Kenya has the technical capacity to establish and operate complex manufacturing facilities without significant delays.

For African economies seeking to create jobs and develop domestic industries, the debate highlights the challenge of moving beyond the export of raw materials toward greater local processing and manufacturing.

By Bakhtiyar Abbasov