Tata Chemicals Magadi submits compliance report to Kenyan government amid operational suspension order

Synopsis

Tata Chemicals Magadi has submitted a compliance report to the Kenyan government to address regulatory concerns and is awaiting further instructions.

Tata Chemicals Magadi Limited (TCML) has submitted a detailed compliance report to the Kenyan government to resolve regulatory concerns surrounding its operations, while awaiting further instructions from the Ministry, the company said in an exchange filing on Friday.

The Company acknowledges the official communication received, continues to be letter from the Ministry of Mining, Blue Economy and Maritime Affairs (Ministry) dated July 28, 2026, said Tata Chemicals. "We wish to reiterate, that on August 11, 2026, Tata Chemicals Magadi Limited submitted all the required information, reports and documentation and TCML is fully compliant with the regulatory requirements."

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TCML having provided a comprehensive response to the matters raised by the Ministry, including information regarding its compliance with applicable regulatory requirements, awaits the Ministry’s review of our submissions and its further direction, it said further.

Since 2005, when Tata Chemicals Limited acquired the Magadi plant, it has played an important role in the Kenyan economy and continues to be an integral part of our business, said the Tata arm further in its statement.

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"We respect the authority of the Government of Kenya and remain committed to constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters. Our priority continues to be the well-being of our employees, the Magadi community, our stakeholders in Kenya and continued economic development of Kenya."

Shares of Tata Chemicals declined 3% to their day's low of Rs 625 on the BSE on Friday after Kenya President William Ruto said on Thursday that he had ordered the company to stop its operations in the country, stating that its presence had failed to benefit Kenya.

Ruto said the Kenyan government would bring in two new companies to take over Tata Chemicals’ operations. In late July, Tata Chemicals had said the Kenyan government ordered its unit, Tata Chemicals Magadi Limited, to suspend operations at the Magadi Soda factory and halted exports of soda ash.

Tata Chemicals’ Kenya business

Tata Chemicals’ Kenya operations contributed around 6% of the company’s total EBITDA in FY26. Tata Chemicals Magadi has an annual soda ash production capacity of around 350,000 tonnes. Soda ash is used across industries such as glass manufacturing, chemicals and detergents.

Formerly known as Magadi Soda Company, Tata Chemicals Magadi has been part of Tata Chemicals since 2005. Tata Chemicals, part of the global Tata Group, is one of the world’s leading chemical companies, with a portfolio spanning household products, industrial chemicals and agricultural inputs. It is Africa’s largest soda ash manufacturer and one of Kenya’s leading exporters.

Tata Chemicals Q1 results

Tata Chemicals, the world’s second-largest soda ash manufacturer, reported a consolidated net loss of Rs 17 crore for the first quarter ended June 30, 2026, compared with a net profit of Rs 252 crore in the corresponding period last year. The decline was primarily attributed to lower realisations, reduced other income and lower income from joint ventures.

Consolidated revenue from operations increased 14.4% year-on-year to Rs 4,255 crore from Rs 3,719 crore in the year-ago quarter, supported by higher volumes that offset lower realisations.

Consolidated EBITDA, however, fell 14.5% to Rs 555 crore during the quarter from Rs 649 crore in the same period last year. The decline was mainly due to lower realisations at overseas subsidiaries, particularly from exports from the US to Southeast Asian markets.

Tata Chemicals shares have fallen 15% so far in 2026, while the stock has lost more than 30% over the past year.