NAIROBI, 29 July 2026 - Mining CS Hassan Joho has ordered the immediate suspension of all mining operations at Tata Chemicals Magadi over alleged non-compliance with the Mining Act.
The company will remain closed until it meets all legal requirements, putting more than 1,000 jobs at risk
This order will remain in place until the company fully complies with the Mining Act, its Regulations and all other applicable laws governing Kenya's mining sector.
The directive follows years of sustained engagement between the State Department for Mining and Tata Chemicals Magadi Limited regarding its statutory obligations under the Mining Act, Cap. 306, the Mining (Licence and Permit) Regulations 2017, the Mining (Royalty Collection and Management) Regulations 2024, and other relevant legal frameworks.
Despite these engagements, several critical compliance issues remain unresolved including lack of a clear mineral beneficiation/value addition strategy, outstanding royalty reconciliation and payment obligations, insufficient export reporting and reconciliation, poor implementation of Community Development Agreements (CDA), inadequate employment and skills transfer plan for Kenyan citizens, weak procurement of local goods and services, and environmental compliance shortfalls.
The Mining CS directed the company to submit comprehensive documentation and evidence demonstrating full compliance with all the statutory obligations and to address any outstanding liabilities before it can resume operations.
CS Joho reassured that the Ministry remains steadfast in its commitment to ensuring that Kenya's mineral resources are exploited responsibly, sustainably, and in a manner that delivers maximum economic value to the country while safeguarding the environment and protecting the interests of host communities.
Tata Chemicals Magadi is Africa’s largest soda ash manufacturer, located at Lake Magadi in Kajiado County, about 120 km southwest of Nairobi, Kenya.
Operations began in 1911 as the Magadi Soda Company (later part of Brunner Mond/ICI), with Tata Chemicals acquiring a majority stake in 2005. The company extracts trona from the lake and processes it into soda ash through mining, calcining, and refining. Main products include soda ash (for glass, detergents, and chemicals), crushed refined soda, and various industrial and livestock salts.
It has operated for over 115 years and holds major economic significance as one of Kenya’s top exporters, generating foreign exchange, employment (over 1,000 direct jobs), and supporting local infrastructure and community programs in the Magadi region. It contributes substantially to national revenue and downstream industries while being a key socio-economic anchor for the surrounding Maasai community.
A prolonged suspension could disrupt soda ash production and exports from the Kenya operations.
However, the company maintains that it is compliant and is pursuing legal options, making the eventual financial impact dependent on the outcome of the regulatory review.