By Nyang’au Araka
Kenya has moved to establish a high-level technical committee with Tata Chemicals Magadi Limited to resolve outstanding regulatory and community concerns surrounding the company’s operations at Lake Magadi, Kajiado County.
The development follows a meeting between Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Ali Joho and executives of Tata Chemicals Magadi on Tuesday, amid an escalating dispute that has resulted in the suspension of the company’s mining operations.
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In a statement issued after the meeting, Joho said the engagement focused on compliance concerns raised by the Ministry.
“Following the suspension of operations at Tata Chemicals Magadi Limited, today at my office I led a fruitful engagement with the Company’s executives regarding the compliance concerns we raised as a Ministry,” Joho said.
The CS said the two sides had agreed to establish a high-level technical committee to undertake a comprehensive review of the outstanding issues.
The committee will be led by the Principal Secretary for Mining on behalf of the Government and the Chief Executive Officer of Tata Chemicals Magadi on behalf of the company.
According to Joho, the committee will “undertake a detailed technical review of the outstanding and unresolved compliance matters” before submitting its report to his office for consideration and further direction.
Key issues on the table
The committee will focus on five major areas, including mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, unresolved land matters, opening up the area for multiple mineral extraction and outstanding matters between Tata Chemicals and the Kajiado County Government.
The move comes weeks after Joho ordered the immediate suspension of all mining operations by Tata Chemicals Magadi over alleged regulatory non-compliance.
The Ministry had cited unresolved concerns including mineral beneficiation and value addition, royalty reconciliation and payment obligations, export reporting, implementation of Community Development Agreements, employment and skills transfer for Kenyans, local procurement and environmental compliance.
The company, however, has maintained that it complied with the Government’s requirements and said it had submitted the requested documentation to the Ministry.
In August, Tata Chemicals Magadi said it had submitted all information, reports and documentation requested by the Ministry and was awaiting further direction. The company said its mining operations had remained suspended since July 28.
The latest talks also come against the backdrop of President William Ruto’s recent directive that Tata Chemicals end its operations in Kenya, with the President accusing the company of failing to deliver sufficient local economic benefits from its Magadi operations.
The President said the Government would seek new investors capable of establishing manufacturing facilities and promoting greater value addition in Kajiado.
The committee’s formation could therefore provide a fresh avenue for resolving the dispute through technical and regulatory engagement.
Joho said the Government remained willing to work with investors while protecting the country’s interests.
“As Government, we remain committed to constructive engagement with investors while firmly upholding Kenya’s laws, regulations and the interests of its people,” he said.
He added that the Government’s objective was not merely to resolve the immediate compliance concerns but to establish a framework that would promote responsible mining, value addition, community development and mutually beneficial partnerships.
Tata Chemicals has previously said it respects the Government’s regulatory authority and remains committed to constructive engagement to resolve the outstanding issues.
The Magadi dispute has attracted heightened attention because Tata Chemicals is a major soda ash producer and the Magadi operation has been an important part of Kenya’s mineral export sector.
The company has also said the prolonged shutdown affects about 500 employees and their families, as well as contractors, suppliers, transporters and local businesses, while around 30,000 people in the Magadi community benefit directly from its support programmes.
