Kenyan President William Ruto has withdrawn Tata Group’s century-old concession to mine near Tanzania. His decision has divided communities around Lake Magadi, where the Indian company produces soda ash.
Kenya ranks fourth globally in natural soda ash production, contributing around 1%. Tata’s operation exported about $57 million ( ₹538 crore) worth of soda ash last year. According to the BBC, the number was $78.7 million in 2024. The company also supplies Kenya’s water utilities, showing how the dispute extends beyond export earnings.
Ruto wants Kenya to earn more from its natural resources through further local manufacturing. He has asked Magadi to leave, accusing it of delivering insufficient benefits. The government says new investors have been identified to bring more jobs and investment.
“Tata Chemicals Magadi has had a contract for 100 years, and they have done nothing. I told them the other day to pack up and leave,” the BBC quoted Ruto as saying in Swahili.
“They have not built anything in Kajiado, they have not built any factory in Kajiado,” he added.
The dispute centres on how much processing should happen before products leave the country. Tata extracts trona from Lake Magadi and processes this mineral into soda ash. However, Ruto wants factories that make finished products, including glass, cleaning products, and vehicle batteries.
Kenyan officials argue that exporting soda ash also sends possible jobs and investment abroad. Industrialisation Principal Secretary Juma Mukhwana says local processing could support engineers, technicians and entrepreneurs.
“No strategic raw material should leave Africa without first asking whether we can competitively transform it here,” Bloomberg quoted Mukhwana as saying.
He argues that should consider competitive local manufacturing before exporting important raw materials.
Tata says its soda ash operations elsewhere follow a similar business model. Even its plants in India and America lack further manufacturing facilities, such as glass factories. The company says it has answered government concerns and submitted information about regulatory compliance.
The company is awaiting the mining ministry’s review and further instructions. Tata also says it respects the government’s decision and remains committed to constructive discussions. It wants outstanding issues resolved through the appropriate legal and regulatory channels.
Tata also faces a separate dispute with the Kajiado county government over land rates. The county is demanding 12.2 billion Kenyan shillings ( ₹890 crore). The matter is before Kenya’s Supreme Court, and Tata considers it an external risk.
In July, Kenya’s government ordered operations suspended, citing unpaid royalties and other regulatory failures. Tata says its response addresses the ministry’s concerns, including compliance with applicable requirements.
Reaction to government decision
The opposition, Democracy for the Citizens Party, has questioned the reasons behind Ruto’s move. It alleges that Tata is being pushed out because of lithium and oil deposits. Lake Magadi lies within an oil exploration block belonging to Kenya’s state oil company.
For nearby communities, the disagreement centres on essential services and questions about economic benefits. Tata supports four schools, staffs a hospital, and supplies fresh water to the town of Magadi.
Its private railway also provides free cattle watering points along a 145-kilometre route. Community passengers pay just 30 US cents for long train journeys.
The company employs about 500 people, making its future important for local families. Tata says its community programmes benefit around 30,000 people through several services and infrastructure support. These include water, healthcare and education in the surrounding area.
Community organiserRose Saroni believes Tata should be given another chance to continue operating.
“Let’s sit down and talk about the community grievances and how they can be addressed,” Bloomberg quoted her as saying.
She also fears that access to clean water could suffer if the company leaves.
Other local leaders support Ruto’s action and want greater benefits from mining. Local representative Isaac Keses Kiresian says residents deserve benefits, including a share of royalties.
“We are entitled by law to get benefits,” he said. “Unfortunately, it has been push and pull with the company.”