Tata exit order risks Sh7.4bn trade, tests Ruto’s industrial plan

Kenya's President William Ruto has instructed Tata Chemicals to "pack up and leave" the country, citing the company's failure to generate jobs and process minerals locally. Ruto, who is aiming for a second term in the upcoming elections, has increasingly emphasized wealth creation through industrialization as part of his reelection campaign.

The president's demand came five weeks after his mining minister instructed Tata Chemicals to suspend operations at one of its plants, reportedly due to non-compliance with regulatory standards. Tata Chemicals countered that it had presented proof of its regulatory compliance. Subsequently, the company stated that it remains "committed to constructive engagement" through legal and regulatory channels.

However, Ruto asserted that the government is seeking new investors to assume the company's operations, with the objective of setting up manufacturing facilities to add value locally and create employment opportunities. This move follows Ruto's efforts to curb small-scale retail and hawking activities for citizens, with authorities poised to commence the shutdown of foreign-owned businesses from September 7.

Ruto assumed office in 2022 following an election in which he pledged to enhance the lives of ordinary Kenyans; however, unpopular tax increases led to protests. Industrialization has emerged as a consistent theme in Ruto's agenda as he prepares for the 2027 election. At the inauguration of Zambia's president on Tuesday, Ruto called on African nations to develop manufacturing capabilities to "create opportunity and create wealth."