Tata Chemicals Magadi Limited has alerted that the suspension of its Magadi soda‑ash mining operations could lead to the redundancy of roughly 500 directly employed workers, while an additional 600 contractor‑based staff also face uncertainty.
The company argues that the Ministry of Mining, Blue Economy and Maritime Affairs halted operations without adequate notice, objective timelines or clear compliance criteria, leaving the firm at the ministry’s discretion.
Tata Chemicals warns that the prolonged suspension threatens its Sh3.62 billion expansion project, which is central to its growth strategy and could suffer irreparable financial losses if delays continue.
Kajiado County government has applied to halt the court proceedings, asserting that the outcome will affect its own financial interests, including unpaid land rates of Sh11.4 billion recorded in February 2023.
The county also claims the dispute encompasses broader concerns such as environmental protection and the welfare of communities surrounding the mine, separate from the legal question of the ministry’s authority.
Tata Chemicals has resisted the county’s bid to join the judicial review, maintaining that issues like lease expiry, royalties and other financial claims are already being addressed in separate court cases.
The Ministry of Mining contends the shutdown was necessary to enforce compliance with statutory requirements, citing repeated notifications to the company about alleged violations, unpaid royalties and accrued arrears.
Comments