Joho suspends Tata Chemicals Magadi mining over compliance failures

Mining, Blue Economy and Maritime Affairs Cabinet Secretary Ali Hassan Joho [Kelvin Karani, Standard]

Mining Cabinet Secretary Hassan Ali Joho has suspended Tata Chemicals Magadi's mining operations over alleged non-compliance with mining laws, ordering the company to halt work until it meets legal requirements.

In a statement on Wednesday, July 29, Joho said the decision followed years of engagement between the State Department for Mining and the company over its statutory obligations, but compliance remained inadequate.

He directed that the suspension remain in force until the company complies with all legal and regulatory requirements.

"The decision follows years of sustained engagement between the State Department for Mining and Tata Chemicals Magadi Limited regarding its statutory obligations under the Mining Act, the Mining (Licence and Permit) Regulations, 2017, the Mining (Royalty Collection and Management) Regulations, 2024, and other relevant legal frameworks," noted Joho.

The ministry identified several unresolved compliance issues, including the lack of a mineral beneficiation and value addition strategy, outstanding royalty reconciliation and payment obligations and inadequate export reporting and reconciliation.

Joho also cited poor implementation of Community Development Agreements, inadequate employment and skills transfer plans for Kenyan citizens, weak procurement of local goods and services and environmental compliance gaps.

Tata Chemicals Magadi, which mines soda ash in Kajiado County, must submit documentation demonstrating full compliance with all statutory obligations and resolve all outstanding liabilities before mining operations can resume, Joho said.

The Cabinet secretary said the action forms part of the government's efforts to strengthen oversight of the mining sector and ensure mineral resources benefit the country while protecting the environment and host communities.

"The Ministry remains steadfast in its commitment to ensuring that mineral resources are exploited responsibly, sustainably and in a manner that delivers maximum economic value to the country while safeguarding the environment and protecting the interests of host communities," added Joho.