Mining Cabinet Secretary Hassan Joho has suspended all mining operations by Tata Chemicals Magadi Limited.
In a statement on Wednesday, July 29, CS Joho said the suspension will remain in place until the company fully complies with the Mining Act, its regulations and other applicable laws.
“The Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, Hon. Hassan Ali Joho, has 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 governing Kenya's mining sector,” the statement read in part.
According to the Mining CS, the suspension of mining operations follows years of engagement between the State Department for Mining and Tata Chemicals Magadi over its statutory obligations.
“The decision 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) Regulations2017, the Mining (Royalty Collection and Management) Regulations 2024, and other relevant legal frameworks,” Joho stated.
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The Mining CS noted that several compliance issues remain unresolved despite the prolonged consultation.
The unresolved issues include lack of a clear mineral beneficiation and value addition strategy, outstanding royalty reconciliation and payment obligations, insufficient export reporting and reconciliation, and poor implementation of Community Development Agreements (CDA).
Others are inadequate employment and skills transfer plan for Kenyan citizens, weak procurement of local goods and services, and environmental compliance shortfalls.
CS Joho directed the company to submit comprehensive documentation and evidence demonstrating full compliance with all statutory obligations before mining activities can resume.
“CS Joho reassures 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,” the statement concluded.
Tata Chemicals Magadi is one of the largest soda ash manufacturers across the African continent.
Established in 1911, the company has been producing soda ash at Lake Magadi in Kajiado County.
Tata Chemicals Magadi has been a subsidiary of India's global Tata Group since 2005. Previously, the company was known as the Magadi Soda Company.
The company currently has more than 400 employees.
