Gov’t Shuts Down Coast’s BIGGEST Company, Over 1000 Works Set To Lose Jobs
Hundreds of workers face mass layoffs after the government ordered the immediate suspension of all mining operations at Tata Chemicals Magadi Limited over alleged non-compliance with mining laws.
In a statement on Wednesday, July 29, Mining Cabinet Secretary Hassan Joho ordered the company to be shut down immediately until it fully complies with the Mining Act.
“I ordered the immediate suspension of all mining operations by Tata Chemicals Magadi Limited until the company fully complies with the Mining Act, its regulations and all other applicable laws,” the CS announced.
The suspension is set to heavily affect one of the country’s biggest mining companies, raising fears that over 1000 workers could lose their jobs while activities in Magadi remain stalled.
Headquartered in Mumbai, India, the company is a major employer in Magadi, Kajiado County, and its estimated net worth is about Ksh10 billion as of 2024.
According to Joho, the decision follows years of engagement between the State Department for Mining and Tata Chemicals Magadi Limited over the company’s compliance with its statutory obligations.
He said the engagements focused on requirements under the Mining Act, the Mining (Licence and Permit) Regulations 2017, and the Mining (Royalty Collection and Management) Regulations 2024.
Despite the prolonged consultations, CS Joho noted that several critical compliance issues remain unresolved, forcing him to order the firm’s shutdown.
These issues include the lack of a clear mineral beneficiation strategy, outstanding royalty reconciliation and payment obligations, inadequate export reporting and poor implementation of Community Development Agreements (CDAs).
Other matters that remain unresolved include insufficient plans for employing and transferring skills to Kenyans, weak procurement of local goods and services, and shortcomings in environmental compliance.
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As a result, the company has been directed to halt all mining activities immediately and submit comprehensive documentation proving full compliance with all statutory obligations.
Joho said the government will not compromise on compliance in the mining sector, stressing that all investors must operate within the law while ensuring the country benefits fairly from its mineral resources.
“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,” Joho said.
Tata Chemicals Magadi is Africa’s largest manufacturer of soda ash and salt, and it is owned by the Indian conglomerate Tata Group through its subsidiary, Tata Chemicals Limited.
The company mines trona deposits from Lake Magadi and processes the mineral into soda ash and various grades of salt used in industries such as glass manufacturing.
More than 95 per cent of Tata Chemicals Magadi’s production is transported by a dedicated railway line to the Port of Mombasa, from where it is exported to markets in African countries and Asia.
Gov’t Shuts Down Coast’s BIGGEST Company, Over 1000 Works Set To Lose Jobs
