Magadi soda ash mine still shut as Tata warns 500 jobs at risk

Tata Chemicals Magadi says the suspension of its mine at Lake Magadi puts more than 500 direct jobs at risk, and about 600 more held by its contractors. In papers filed in its court challenge, reported on 13 October, the company says over 1,100 livelihoods are in immediate jeopardy and that a planned Sh3.62 billion expansion could be derailed.

The Ministry of Mining, Blue Economy and Maritime Affairs suspended the company's mining operations at the end of July. Cabinet Secretary Hassan Joho cited unresolved royalty payments, weak community development agreements, limited local hiring and buying, gaps in export reporting and environmental compliance. The company says it is compliant and that the suspension came without fair notice and has no set end date or clear conditions for lifting it.

Where the dispute stands

In September the government and the company agreed to set up a joint technical committee to work through the issues, but the suspension stayed in force. Kajiado County is also pressing claims of its own, including land rates it puts at Sh11.4 billion, and has asked to join the case. The company is due in the High Court on 18 November.

Soda ash has been produced at Magadi since 1911. It goes into glass, detergents and cleaning products and other industrial chemicals, and Kenya is the world's fourth largest producer of natural soda ash.