Kenyan President William Ruto has directed Tata Chemicals to stop its operation in the country, intensifying a dispute that has been ongoing since July.
Ruto expressed his disappointment with Tata Chemicals, saying company’s operations “failed to benefit” the African country.
The company is now awaiting the ministry’s review of the submissions and further directions. The government cited several unresolved compliance issues, including royalty reconciliation and payments, export reporting, mineral beneficiation and value addition, community development agreements, employment and skills transfer for Kenyan citizens, procurement from local suppliers and environmental compliance.
Following the Kenyan President’s remarks, Tata Chemicals issued a statement saying that it had “submitted all the information and documents sought by the Kenyan government”. The Indian company also said it was “compliant with applicable regulations” and was awaiting the government’s review of its response. The company said its Kenyan subsidiary submitted “all the information, reports and documentation” requested by Kenya’s Ministry of Mining, Blue Economy and Maritime Affairs on August 11. Tata Chemicals said it had provided a comprehensive response to the concerns raised by the ministry, including details of its compliance with regulatory requirements. The Kenyan president said his government would bring in two new companies to replace Tata Chemicals. He said one would be expected to set up a large glass manufacturing plant in Kajiado, while the other would produce chemicals locally. Ruto’s government plans to bring in two new companies to take over Tata Chemicals’ operations, according to a Reuters report. The ministry said it had been engaging with Tata Chemicals for years regarding its statutory obligations. It said the company would need to submit documents demonstrating full compliance and settle outstanding liabilities before mining operations could resume.
