Mining at Lake Magadi in Kajiado West. Photo courtesy of Bus Radio Kajiado.
Kenya risks losing more than Sh7 billion in annual soda ash export earnings if Tata Chemicals Magadi is forced to end its operations at Lake Magadi, raising questions over the future of one of the country’s oldest industrial enterprises and a key mineral export.
President William Ruto on Thursday ordered Tata Chemicals to leave Kenya, accusing the Indian-owned company of failing to deliver sufficient economic benefits to Kajiado County despite operating at Magadi for more than a century.
He said the government would bring in new investors to take over the operation and require them to establish glass and chemical manufacturing plants locally.
The move follows a government directive in July that suspended Tata Chemicals Magadi Limited’s mining operations and soda ash exports over regulatory and compliance concerns. The company has challenged the suspension in court.
Kenya exported 254,779.6 tonnes of soda ash valued at Sh7.36 billion in 2025, according to the 2026 Economic Survey cited by local media.
The reports said the figures make soda ash one of Kenya’s established export earners, although earnings have declined from Sh11.88 billion in 2022 as export volumes and prices weakened.
Tata Chemicals Magadi, Africa’s largest soda ash processor, produces natural sodium carbonate at Lake Magadi for export markets including India, the Middle East and Southeast Asia.
The product is used in glass manufacturing as well as detergents, soaps, chemicals, water treatment and paper production.
The dispute has therefore placed both Kenya’s export earnings and the government’s industrialisation ambitions in focus. President Ruto argues that the country should capture more value from its mineral resources instead of exporting raw trona and importing higher-value products made from soda ash.
During his visit to Kajiado, Mr Ruto said a replacement investor would be expected to establish a large glass factory and a chemicals plant in the county. Reuters reported that the President accused Tata of having operated under a contract for about 100 years without building factories in Kajiado.
The government has also raised concerns over local employment, procurement, skills transfer, royalty reconciliation and alleged under-reporting of exports, while environmental concerns have been raised over management of the Lake Magadi ecosystem.
Business Daily reported that Kajiado County is separately pursuing a Sh17.45 billion claim against Tata over alleged land rates and royalties dating from 2013 to 2018.
Tata Chemicals, however, disputes the government’s position. In a statement reported by Business Standard, the company said its Magadi subsidiary had submitted the information, reports and documentation requested by the Ministry of Mining on August 11 and maintained that it was compliant with regulatory requirements. The company said it remained committed to resolving the outstanding issues through the appropriate legal and regulatory channels.
The company has also pointed to its contribution to the Magadi community, including healthcare services, scholarships, water supplies and subsidised rail transport between Magadi and Kajiado.
The economic implications extend beyond Tata itself. Business Standard reported that Tata Chemicals’ shares fell 1.9 per cent to 629.75 rupees on September 4 following reports of the Kenyan order, reflecting investor concern over the uncertainty surrounding its Magadi operations.
The immediate outcome will depend partly on ongoing legal proceedings. With the suspension and Tata’s challenge still unresolved, Kenya faces a delicate balancing act between protecting a longstanding export industry and achieving its goal of ensuring greater local value addition from the country’s mineral resources.
