Ruto links Tata Chemicals’ exit to policy ending raw material exports

President William Ruto has connected the government's decision to replace Tata Chemicals at Lake Magadi with a broader policy of ceasing to export raw minerals and boosting local processing. In South Horr, Samburu County, Ruto stated that the Magadi situation was part of Kenya's overarching policy towards minerals and other natural resources nationwide.

He clarified that this policy would encompass soda ash, oil, gold, lithium, coltan, and rare earth minerals, among others. Ruto emphasized the government's intent to process all minerals found within Kenya domestically.

Ruto announced that the government was collaborating with investors to create processing facilities across the country, including discussions with Dangote regarding a refinery in Lamu and plans for gold refineries. He asserted that local processing would generate employment and retain more value from Kenya's natural resources, noting that Kenya had historically retained only about five percent of the value generated from certain minerals, with the majority of processing occurring abroad.

Regarding Magadi soda ash, Ruto announced that the government would reissue the concession and invite multiple companies to participate in its development, rather than awarding it to a single entity. He projected that between five and ten companies would be involved in the project, aiming to foster job creation and local value addition. The soda ash export, valued at US$56.9 million in the year to July 2025, accounted for about 254,779 tonnes.

The government's decision mirrors Ruto's recent announcement that the arrangement had been "exploitative and extractive," and he vowed to eliminate single-company control of the concession. These changes have sparked concerns among Magadi residents over potential job losses and the cessation of community services provided by Tata Chemicals. The government is now preparing to re-open the concession to multiple investors as part of its strategy to promote local mineral processing and value addition.