New Delhi: Tata Chemicals has reaffirmed that its Kenyan subsidiary, Tata Chemicals Magadi Limited (TCML), complies with the country’s regulatory requirements after President William Ruto directed the Indian company to end its operations in Kenya.
Ruto announced the decision on Thursday during a visit to Magadi in Kajiado County, where Tata Chemicals operates the Magadi Soda facility. He said the Kenyan government planned to bring in two new companies to take over the business and establish manufacturing facilities in the region.
Tata Chemicals, however, said TCML had already responded to concerns raised by Kenya’s Ministry of Mining, Blue Economy and Maritime Affairs. The company said it submitted a detailed compliance report on August 11, providing the information, reports and documents requested by the ministry.
The company said it is now waiting for the ministry to complete its assessment and provide further directions. Tata Chemicals maintained that TCML had addressed the issues raised and remained compliant with applicable regulatory requirements.
Ruto Questions Tata’s Contribution
The Kenyan president criticised Tata Chemicals’ long association with the Magadi operation, arguing that the company had not generated enough local industrial development in Kajiado.
Ruto said Kenya wanted new operators to invest in manufacturing facilities, including a glass factory and a chemical plant, rather than simply exporting raw materials from the region.
The dispute follows a government directive in July requiring TCML to suspend operations at the Magadi Soda factory. Soda ash exports from the facility were also stopped.
Tata Chemicals Signals Continued Engagement
Tata Chemicals said the Magadi operation has been an important part of its business and Kenya’s economy since the company acquired the plant in 2005.
The company said it respects the Kenyan government’s authority and remains committed to resolving the matter through legal and regulatory channels. It also highlighted its focus on employees, the local community and continued economic development in Kenya.
The developments affected Tata Chemicals’ shares in India, with the stock falling around 3% to an intraday low of Rs 625 on the BSE on Friday following Ruto’s announcement.
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