DCP MPs Link Tata Chemicals Shutdown to Ruto's Magadi Interests

Members of Parliament allied to the Democracy for Citizens Party (DCP) have linked the closure of Tata Chemicals Magadi Limited to alleged business interests involving President William Ruto.

In a statement on Thursday, September 3, the MPs said the shutdown would create uncertainty for more than 100,000 residents in and around Magadi, while directly affecting hundreds of employees and thousands of workers who depend on the facility.

"We have heard that Mr. William Ruto plans a tour of Kajiado County at a time when the lives of over 100,000 residents in and around the Magadi area are facing uncertainty as TATA Chemicals Limited closure has been ordered," the statement read.

The lawmakers condemned the directive to shut down the facility, describing it as economically damaging and legally questionable. 

They accused the Ministry of Mining of using regulatory compliance as a basis for what they termed state-sponsored economic sabotage.

"From the outset, we condemn this reckless, economically suicidal, and legally rogue directive by the Ministry of Mining to forcefully shut down Tata Chemicals Magadi Limited. 

"This dictatorial decree, issued under the guise of regulatory compliance, is a textbook example of state-sponsored economic sabotage that will plunge thousands of Kenyan families into absolute desperation," the statement added.

The MPs further alleged that the reasons given for the closure were a cover for wider interests in the natural resources found in the Magadi area.

"The flimsy excuses given are just a decoy; The truth of the matter is, there are huge deposits worth trillions of shillings of lithium metals underneath the Magadi area. Further, there are huge oil prospects in the same vicinity within which TATA Chemicals Limited operates," the statement further read.

The lawmakers also accused Ruto of pursuing personal interests in Kenya’s natural resources, while citing several other areas where they alleged his involvement in resource exploration.

"Mr. President, Kenya’s Natural resources cannot be individualized to your personal interests. This is not the first time you are going for our natural resources for your personal gain; we are well aware of your hand in Turkana Oil, Gold in Shimba Hills, Gold exploration in Laikipia, Narok, Kakamega and Amboseli among others. Now you want Lithium and Oil in Magadi. Mr. President, how much is enough? How much?" the statement noted.

The MPs further alleged that Ruto could be seeking either to push Tata Chemicals out of Magadi or acquire a majority stake in the company, before involving Gulf-based associates in oil exploration.

"Mr. William Ruto, in his unsuitable appetite for material wealth, wants to create a crisis by throwing out tata chemicals or get a majority of shareholding, bring in his Gulf energy associates to do oil exploration and cash away with the fortune," the statement added.

The DCP lawmakers warned that the closure would have significant consequences for employment in Magadi, noting that more than 500 direct employees and thousands of support workers could lose their livelihoods.

They also said the shutdown would affect the local community's access to essential infrastructure, healthcare and clean water, services they said have historically been supported by Tata Chemicals.

The MPs further raised concerns over the potential impact on Nairobi’s water supply, saying the closure could disrupt the availability of soda ash used by the Nairobi City Water and Sewerage Company to treat water.

They questioned where the water utility would obtain an average of 360 tonnes of soda ash required every month and also raised concerns about the availability of alternative soda ash producers in East Africa.

The lawmakers said Magadi residents were already facing a water crisis following the closure, recalling that before independence residents relied on water from Enkuruman water springs before later receiving water from Tata Chemicals.

They warned that the situation could eventually threaten human lives if access to water was not restored.

The MPs also criticised the government over what they described as the potential damage to Kenya’s investment reputation, arguing that the closure could send a negative signal to international investors about the security of major investments in the country.

They said arbitrary enforcement action against a major investment could undermine Kenya’s competitiveness and confidence among investors.

The lawmakers called on the government to reverse the suspension and challenged Ruto to explain his position on the closure during his planned tour of Kajiado County.

"So, Mr. President as you tour Kajiado County, you must tell the people of Kajiado what you want with closure of TATA Chemicals Limited," the statement concluded.

Earlier Thursday, Ruto confirmed that he ordered the shutdown of the company.

Speaking in Oloiren, Kajiado County, he said the company had held the license to mine soda ash in Lake Magadi for a hundred years without making sufficient investments in the county or creating enough employment opportunities for locals. 

Ruto noted that Lake Magadi holds significant economic potential that could transform Kajiado and contribute to Kenya’s industrial development.

"We have vast resources at Lake Magadi that can transform Kajiado County and our country, Kenya. That Tata Chemicals company has had a licence for 100 years but has not built anything in Kajiado or employed any people from Kajiado.

"I told them to pack up their things and leave. Let them go. These people come here, take our resources and transport them to India and other countries," he said.

Ruto said the government will issue the Magadi soda ash mining license to a new investor at Lake Magadi under conditions. 

He said the new investor will be required to build a glass manufacturing plant and another plant for manufacturing chemicals in Kajiado. 

"We will bring in a new company, and the condition for that company is that it must establish a major glass manufacturing plant here in Kajiado County, as well as another company to manufacture chemicals," he added.