Kenya: About 500 Jobs At Risk, Tata Chemicals Magadi Warns Amid License Suspension

19 August 2026

Nairobi — Tata Chemicals Magadi has warned that about 500 jobs are at risk as its operations remain suspended following regulatory non-compliance.

The company said the prolonged closure has created uncertainty for employees, communities and business partners, with the economic impact extending beyond its operations.

"As the suspension continues, its consequences extend well beyond TCML's own operations. Approx 500 employees and their families, contractors, suppliers, transporters and local businesses all depend directly or indirectly on the economic activity the Company generates," the company said in a statement.

Tata Chemicals Magadi, which produces soda ash and other salt and industrial mineral products from trona deposits at Lake Magadi, said about 30,000 people in the Magadi community also benefit directly from its support in water, healthcare, education, infrastructure and community development.

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The company has submitted the required regulatory compliance documents to the Ministry of Mining, Blue Economy and Maritime Affairs for review as it seeks reinstatement of its licence.

Last month, the Government suspended Tata Chemicals Magadi's mining operations over regulatory non-compliance, citing breaches of statutory obligations under Kenya's mining laws.

Mining Cabinet Secretary Hassan Ali Joho said the suspension followed the company's failure to meet requirements under the Mining Act, Cap. 306, the Mining (Licence and Permit) Regulations 2017, the Mining (Royalty Collection and Management) Regulations 2024 and other applicable legal frameworks.

The outstanding issues include the absence of a clear mineral beneficiation and value addition strategy, unresolved royalty reconciliation and payment obligations, as well as inadequate export reporting and reconciliation.

"TCML recognises and respects the Government's mandate to regulate Kenya's mining sector. Throughout this process, the Company has cooperated fully with authorities and remains committed to responsible mining, environmental stewardship and regulatory compliance," the company said.

"TCML looks forward to an expeditious review of its submissions and a clear pathway to responsibly resuming operations."

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