Ruto: Tata Chemicals’ Magadi mining contract was exploitative

Ruto says the government will re-advertise the Magadi contract and open the operations to greater participation, ending the monopoly by one company.

Prudence Wanza
3 Min Read
President William Ruto during his development tour of Kajiado County, where he launched several projects, including the construction of the 22-kilometre Ngong-Kibiko-Kangeria Road. //PHOTO:PCS

President William Ruto has defended the government’s decision to end Tata Chemicals’ operations in Magadi, Kajiado County, accusing the company of exploiting local mineral resources without giving residents a fair share of the benefits.

Speaking in Kajiado, Ruto described the contract held by the company for decades as exploitative and extractive.

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“We have made the right decision to end the exploitative and extractive contract for Tata Chemicals in Magadi, Kajiado County,” Ruto said.

He announced that the government will re-advertise the contract and open the Magadi operations to greater participation, ending what he termed a monopoly by one company.

“We will no longer allow one company to monopolise operations at Magadi at the expense of the people and the wider economy,” he said.

Ruto said companies that secure the new contracts will be required to establish processing and manufacturing facilities in Kenya to ensure the country benefits from value addition, jobs and local industries.

“We will not allow the export of raw materials that leaves Kenya with little value while wealth and jobs are created elsewhere,” he said.

The head of state also outlined measures to limit the amount of land that can be occupied by a single company in Kajiado, saying communities will going forward retain a larger share.

“We are going to make sure that no company occupies more than 240,000 acres of land in Kajiado, there will be a maximum of 30%, the rest of the land will go back to the people,” he said.

Ruto spoke during his development tour of Kajiado, where he also launched several projects, including the construction of the 22-kilometre Ngong-Kibiko-Kangeria Road linking Kajiado and Kiambu counties.

The government suspended Tata Chemicals’ mining licence on July 29, 2026, after Mining and Blue Economy Cabinet Secretary Hassan Joho cited alleged breaches of statutory obligations under the Mining Act and its regulations.

The company was accused of failing to demonstrate a clear mineral beneficiation and value addition strategy, having outstanding royalty reconciliation and payment obligations, insufficient export reporting and reconciliation, and poor implementation of Community Development Agreements.

Joho directed the company to submit documentation demonstrating compliance with its statutory obligations and address outstanding liabilities before resuming operations.

Tata Chemicals, a subsidiary of India’s Tata Group, took over operations of Magadi Soda Company in 2005.

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