Mining, Blue Economy and Maritime Affairs Cabinet Secretary (CS), Hassan Ali Joho, has ordered the immediate suspension of all mining operations by Tata Chemicals Magadi Limited over regulatory non-compliance.
The decision follows sustained engagements between the State Department for Mining and Tata Chemicals Magadi Limited over the Company’s statutory obligations under the Mining Act, Cap. 306, the Mining (Licence and Permit) Regulations, 2017, and the Mining (Royalty Collection and Management) Regulations, 2024.
In a press release from the Ministry, several critical compliance issues remain unresolved, including the lack of a clear mineral beneficiation and value addition strategy, outstanding royalty reconciliation and payment obligations, and inadequate export reporting and reconciliation.
The Company has also been faulted over the implementation of Community Development Agreements (CDA), employment and skills transfer plans for Kenyan citizens, procurement of local goods and services, and environmental compliance.
The Ministry has directed the Company to submit comprehensive documentation and evidence demonstrating compliance with all statutory obligations and address any outstanding liabilities before resuming operations.
The CS said the Company will only resume operations after demonstrating full compliance with the Mining Act, its regulations and other applicable laws governing Kenya’s mining sector.
He reaffirmed the Ministry’s commitment to ensuring Kenya’s mineral resources are exploited responsibly and sustainably, while safeguarding the environment and protecting the interests of host communities.
In a statement posted on its official Facebook page, Tata Chemicals Magadi confirmed receipt of the Ministry’s notice, saying it had complied with the directives and undertaken a safe shutdown of its mining operations.
“Further to this, the Company is engaging the relevant stakeholders to find an amicable and speedy resolution to this matter,” said the statement signed by the Company’s Managing Director and CEO, Swaminathan Nagarajan.
Tata Chemicals Magadi Limited, a subsidiary of India’s Tata Group, has been conducting mining operations in Magadi, Kajiado County, for several decades.
The Company, which operates in Kajiado West Constituency and has a depot in Kajiado town, has over the years been embroiled in disputes with the Kajiado County Government over land rates and royalty payments, some of which have ended-up in court.
In January 2024, the County government halted operations at the Company’s Kajiado depot over unpaid land rates arrears.
By Diana Meneto
