Kenya Orders Tata Chemicals Out of Magadi Soda Ash Operation

Kenyan President William Ruto has ordered Tata Chemicals to end its operations at Lake Magadi, escalating a dispute over one of the country’s oldest mining businesses. Ruto said the operation had failed to generate enough local investment and that the government plans to bring in 2 companies to develop soda ash into glass and other chemicals in Kajiado County.

The decision follows a July 28 government order suspending mining and exports at Tata Chemicals Magadi while authorities reviewed regulatory issues. Tata said it submitted the requested documents and maintains that it complies with Kenyan requirements. The company said it will continue engaging the government through legal and regulatory channels.

Lake Magadi has produced soda ash commercially since 1911. Tata Chemicals acquired the business in 2005 and now operates capacity of about 350,000 metric tons a year. The product is used in glass, detergents and chemicals. Kenya exported 254,779 tons of soda ash worth about $56.9 million in the year through July 2025, with Magadi supplying customers in Africa, Asia and the Middle East.

Ruto said the next operators will be required to process more of the mineral inside Kenya rather than export it with limited local manufacturing. The government wants a glass plant and a chemicals factory built in Kajiado, part of a push to extract more value from the country’s minerals and create manufacturing jobs.

The exit would affect employees, suppliers and communities linked to the Magadi operation and could disrupt one of Kenya’s mineral exports during the transition. Tata said the welfare of its workers and the Magadi community remains a priority. The government has not disclosed the companies it plans to bring in or the timetable for transferring the operation.