NAIROBI, Kenya, Sept. 8 – Mining Cabinet Secretary Ali Joho has said Tata Chemicals Magadi owes the Kajiado County Government about Sh17 billion and the local community another Sh1 billion.
Speaking on Citizen TV, Joho said the government will advertise the management of Lake Magadi operations, with prospective investors required to demonstrate how their operations will benefit the local community and the country.
“We have calculated the amount owed by local people to that facility and it is about Sh1 billion. County (Kajiado) is claiming roughly Sh17 billion,” Joho said.
“We will advertise and everybody must reapply afresh and if they do they must show us how the people and the country will benefit.”
Last week, President William Ruto announced during a development tour of Kajiado County that a new investor will take over mining operations at Lake Magadi following the revocation of Tata Chemicals Magadi’s licence in July.
Ruto said the new investor will be required to establish glass and chemical factories before being issued with a licence.
He accused Tata Chemicals Magadi of failing to invest adequately in the local economy and infrastructure despite operating in the area for decades.
In July, Joho said the company’s licence had been suspended over regulatory non-compliance, citing breaches of statutory obligations under Kenya’s mining laws.
The CS listed outstanding issues including the lack of a clear mineral beneficiation and value addition strategy, unresolved royalty reconciliation and payment obligations, and inadequate export reporting and reconciliation.
Tata Chemicals Magadi said last month that it had submitted the required regulatory compliance documents to the Ministry of Mining, Blue Economy and Maritime Affairs for review as it sought reinstatement of its licence.
The company warned that the continued suspension could put about 500 jobs at risk.
Tata Chemicals Magadi, owned by Tata Chemicals Limited, a subsidiary of India’s Tata Group, produces soda ash and other salt and industrial mineral products from trona deposits at Lake Magadi.
Soda ash is used as a raw material in industries including glass manufacturing, detergents and industrial chemicals. Refined soda products are also used in areas such as water treatment and manufacturing.
