(KAJIADO, KENYA) – Kenya plans to bring in a new investor to take over soda ash mining at Lake Magadi. The move follows a government decision to end operations by Tata Chemicals Magadi Limited. The new investor must set up a glass manufacturing plant and a chemical processing factory in Kajiado before getting a licence to operate.
The plan aims to ensure Kenya earns more value from the mineral resources at Lake Magadi through local processing, job creation and industrialisation. It is meant to stop the export of raw materials for processing elsewhere. Soda ash is a key raw material for glass production.
President William Ruto said the resource can change Kajiado and the wider country. He questioned why Kenya imports glass when it has the raw material for making it locally. He accused Tata Chemicals of operating in Kajiado for more than a century without making enough investments in the county or creating enough jobs for residents. He said the company built no industry and no employment opportunities in Kajiado.
The announcement comes weeks after Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Ali Joho suspended all mining operations by Tata Chemicals Magadi Limited over alleged regulatory failures. On 29th July, Joho ordered the suspension. He cited several unresolved compliance issues including lack of a clear mineral beneficiation and value addition strategy, outstanding royalty reconciliation and payment obligations, and inadequate export reporting and reconciliation.
The company was also faulted over implementation of Community Development Agreements, employment and skills transfer plans for Kenyan citizens, procurement of local goods and services, and environmental compliance. The company has since shut down operations. The value of the soda ash operation has not been stated but the push for local processing is expected to anchor a new industrial chain in Kajiado.