Nairobi — Kenya is seeking to reset its dispute with Tata Chemicals Magadi around stricter demands for local value addition, community benefits and national interests, signalling a softer approach to the company's future after President William Ruto threatened to push it out of the country.
Foreign Affairs Principal Secretary Korir Sing'Oei said Tuesday that the government's broader objective was to attract foreign investment that delivers tangible benefits to Kenyans while supporting sustainable and inclusive development.
"Foreign investment that aligns with national interest, sustainable and inclusive development. That's the goal," Sing'Oei said.
His remarks came as the government moved to establish a high-level technical committee with Tata Chemicals Magadi to review outstanding compliance issues following the suspension of the company's operations at Lake Magadi.
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The shift suggests the government is now focusing on the terms under which Tata Chemicals can continue operating, rather than an immediate exit, despite Ruto's warning last week that the company should "pack their bags and leave".
Mining Cabinet Secretary Hassan Joho said the committee, to be led by the Principal Secretary for Mining and the chief executive officer of Tata Chemicals Magadi, would review unresolved issues and submit its findings to the Ministry for consideration and further direction.
The committee will examine mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, unresolved land matters, opening up the area for multiple mineral extraction and issues involving the Kajiado County Government.
"Following the suspension of operations at Tata Chemicals Magadi Limited, today at my office I led a fruitful engagement with the Company's executives regarding the compliance concerns we raised as a Ministry," Joho said.
"To facilitate a comprehensive and timely resolution of the outstanding matters, we agreed to establish a high-level technical committee."
The review provides a possible pathway out of a dispute that has increasingly centred on whether Kenya receives enough economic and social benefits from the extraction of soda ash at Lake Magadi.
Ruto last week accused Tata Chemicals of operating in the area for about a century without creating enough jobs or establishing manufacturing industries in Kajiado.
"That Tata company has had the contract for 100 years, yet it has not built anything in Kajiado. It has not established a factory here, and it has not employed our people. The other day, I told them to pack their bags and leave," Ruto said during a development tour of the county.
The President said any replacement investor would face tougher conditions, including establishing manufacturing plants in Kajiado rather than exporting raw or minimally processed minerals.
"We have said that we will bring in a new company, but the conditions for that company will be clear: it must establish a large factory to manufacture glass here in Kajiado County and another facility to manufacture chemicals here," he said.
The government's latest engagement with Tata Chemicals, however, points to negotiations over how the company can meet such demands.
Joho said the government remained willing to engage investors but would insist on compliance with Kenyan law and protection of local interests.
"As Government, we remain committed constructive engagement with investors while firmly upholding Kenya's laws, regulations and the interests of its people," he said.
Tata Chemicals Magadi's operations were suspended on July 28 amid concerns over regulatory compliance, including mineral beneficiation, value addition, royalty obligations and export reporting.
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The company has said it submitted the required regulatory compliance documents as it sought reinstatement of its licence. The shutdown has put jobs at risk and triggered wider concerns over the impact on the Magadi community.
The dispute has also drawn attention to land ownership, community benefits, employment and services associated with the company, including water and healthcare.
Former Deputy President Rigathi Gachagua has separately called for the reopening of the plant, arguing that residents should not bear the cost of the disagreement between the government and the company.
Tata Chemicals Magadi, formerly Magadi Soda Company, has operated at Lake Magadi since 1911 and became part of Tata Chemicals in 2005.
The company extracts trona from the lake and processes it into soda ash, which is used in glass manufacturing, detergents, chemicals and water treatment.
