Mining operations of Africa’s largest soda ash manufacturer Tata Chemicals Magadi Limited have been suspended with immediate effect.
Mining Cabinet Secretary Hassan Joho has ordered the suspension of the firm for being non-compliance with the country’s mining laws.
According to the Joho, the suspension follows the firm’s failure to meet regulatory requirements despite numerous meetings regarding its statutory obligations under the Mining Act, Cap. 306, the Mining (Licence and Permit) Regulations2017, the Mining (Royalty Collection and Management) Regulations 2024, and other relevant legal frameworks.
“Despite these engagements, several critical compliance issues remain unresolved,” said Joho in a statement.
Tata Chemicals Magadi Limited which is a subsidiary of India’s giant conglomerate, Tata Group has been conducting mining activities in Magadi, Kajiado County since 2005.
According to official data, soda ash production rose by 9.3pc to 289,611 tonnes last year from 264,921 tonnes recorded in 2024.
Additionally, crushed refined soda increased by 32.7pc to 697,769 tonnes with a value of Ksh 1 u billion.
Mining ministry says the firm lacked clear mineral beneficiation/value addition strategy, outstanding royalty reconciliation and payment obligations, insufficient export reporting and reconciliation.
Tata Chemicals was also found to have poor implementation of Community Development Agreements (CDA), inadequate employment and skills transfer plan for Kenyan citizens, weak procurement of local goods and services, and environmental compliance shortfalls.
“The company has, therefore, been directed to submit comprehensive documentation and evidence demonstrating full compliance with all the statutory obligations and to address any outstanding liabilities before it can resume operations,” added Joho.
Last year, the firm paid royalties amounting to Ksh 670.9 million as revenue from royalties and mining licenses increased to Ksh 3.8 billion from Ksh 3.3 billion.
