Mining Cabinet Secretary Hassan Ali Joho has ordered the immediate suspension of all mining operations by Tata Chemicals Magadi Limited over failure to comply with Kenya’s mining laws and regulatory requirements.
In a statement on July 29, the Ministry of Mining said the suspension will remain in force until the company fully complies with the Mining Act, its regulations and all other applicable laws governing the country’s mining sector.
“The Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, Hon. Hassan Ali Joho, has ordered the immediate suspension of all mining operations by Tata Chemicals Magadi Limited until the company fully complies with the Mining Act, its Regulations and all other applicable laws governing Kenya’s mining sector,” read part of the statement.
The Ministry said the action follows years of engagement between the State Department for Mining and Tata Chemicals Magadi over the company’s statutory obligations under the Mining Act, the Mining (Licence and Permit) Regulations 2017, the Mining (Royalty Collection and Management) Regulations 2024, and other legal requirements.
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According to the ministry, the company has not resolved several key compliance issues despite the prolonged engagements.
The ministry said the company had failed to develop a clear mineral beneficiation and value addition strategy, while also falling behind on royalty reconciliation and payment obligations. It further accused the firm of inadequate export reporting and reconciliation, as well as failing to effectively implement Community Development Agreements (CDAs).
The government also faulted the company for an inadequate employment and skills transfer plan for Kenyan citizens, weak procurement of locally sourced goods and services, and shortcomings in meeting environmental compliance requirements.
Tata Chemicals Magadi has since been directed to submit comprehensive documentation and evidence proving full compliance with all statutory requirements before its mining operations can resume.
“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,” the statement read.
The company must also address all outstanding liabilities identified by the government, including regulatory and financial obligations, before the suspension can be lifted.
CS Joho said the move is aimed at ensuring that all mining companies operating in Kenya adhere to the country’s legal framework, safeguard the environment, support local communities and maximize the benefits of the country’s mineral resources for Kenyans.
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About Tata Chemicals Magadi
Tata Chemicals Magadi Limited is one of Kenya’s oldest mining companies. It operates at Lake Magadi in Kajiado County.
The company mines trona, a naturally occurring mineral, which it processes into soda ash used in the manufacture of glass, detergents and other industrial products.
The company is Africa’s largest producer of natural soda ash and is among Kenya’s leading exporters. According to Tata Chemicals, more than 95 per cent of the soda ash produced at Lake Magadi is exported to markets across Southeast Asia, the Indian subcontinent, Africa and the Middle East.
Tata Chemicals Magadi is owned by Tata Chemicals Limited, a subsidiary of the Tata Group. The company became part of Tata Chemicals after the Indian firm acquired the business in 2005, expanding its global soda ash operations across Asia, Europe, North America and Africa.
The company employs more than 600 people and operates an integrated mining and processing facility at Lake Magadi. After processing, the soda ash is transported by rail to the Port of Mombasa for export to international markets.
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