Tata Chemicals, one of India's largest chemical companies, has been asked to leave Kenya. The Kenyan government says that the country is not getting as much benefit from the company as it should.
President William Ruto has told the company to "pack its bags and leave."
They allege that the company is exporting soda ash, whereas this mineral can be processed in Kenya itself to make glass and chemicals.
President Ruto said that the government has identified new investors to take over the company. Its objective is to bring more employment and investment to Kenya.
Tata Chemicals has said that it respects the government's decision. The company said it is "committed to constructive negotiations under appropriate legal and regulatory processes to resolve outstanding matters."
Ruto said these things during his visit to Kajiado County. Tata Chemicals Magadi plant is in this area.
Tata Chemicals, part of the Tata Group, operates in Lake Magadi. This place is about 120 kilometers south-west of Kenya's capital Nairobi.
The company exports more than 3.5 lakh tonnes of soda ash every year. It is sent to India, South-East Asia, Middle East and other countries in Africa.
According to the US Geological Survey, Kenya is the world's fourth largest producer of natural soda ash. Soda ash is commonly called sodium carbonate. Kenya's share in its total production in the world is about 1 percent.
Soda ash is mainly made from natural salt water or a mineral called trona. It is used in making glass, chemicals, batteries and other industrial items.
Tata Chemicals is one of Kenya's largest mineral exporters and Africa's largest soda ash producer.
The company extracts trona from Lake Magadi and processes it to make soda ash. According to the company's website, soda ash is an important substance used in making glass. It is also used in making detergent, chemical, water purification, cloth and paper.
According to the company's 2024 financial report, it sold about 2.45 lakh tonnes of soda ash and its turnover was $78.7 million.
About 500 people work in the company. The company says that its community programs benefit about 30,000 people around Magadi. These include water, health care, education, infrastructure and other types of assistance.
But President Ruto says the company is not doing enough for Kenya. He alleged that the company is taking out the natural resources of the country.
"Tata Chemicals Magadi has had the contract for 100 years, but they have done nothing. I told them a few days ago to pack their things and leave," he said in Swahili.
"They have not built anything in Kajiado. They have not even built any factories in Kajiado," he said.
What did Tata Chemicals say?
Tata Chemicals said in a statement that since acquiring the Magadi plant in 2005, it "has played an important role in the Kenyan economy and the plant continues to be an integral part of our business."
Ruto's comments come about five weeks after Kenya's mining minister issued a directive asking Tata Chemicals Magadi to stop its operations. According to reports, the reason for this was said to be non-payment of royalty and non-fulfillment of other regulatory conditions.
The company said it has "given a detailed response to the issues raised by the ministry." It also includes information related to compliance with applicable regulatory rules.
The company said that it is now waiting to review its reply and further instructions.
The history of this factory in Lake Magadi dates back to 1911. In 1928, a large mining lease agreement was signed with the Kenyan government.
In 2005, Tata Chemicals acquired the British company Brunner Mond Group. With this he took the responsibility of this operation.
