There is strong opposition to Tata Chemicals in Kenya. However, the company has rejected these allegations and said that its unit is fully following all the rules. The whole matter is related to ‘soda ash’.
Tata Chemicals, which has been mining ‘soda ash’ in Kenya for almost a century, has now received an order to expel it from the country. Recently, Kenyan President William Ruto has given a strong statement against Tata in a public forum, saying that the company has used the country’s natural resources for 100 years, but the local people have not benefited from it. He has also been asked to pack his belongings and leave the Tata unit.
However, Tata Chemicals has rejected these allegations. The company has said that its Kenyan unit is fully following all the rules. Tata also said that the company is providing all kinds of cooperation with the government. But the question is, why are such big allegations being made against Tata?
Why did Kenyan President William Ruto get angry?
The President of Kenya has publicly talked about the company’s exit from the country. Recently, during a visit to Magadi in the Southern Region of Kajiado, President Ruto made a direct attack on Tata. Addressing the crowd, he said, “The Tatas have had mining rights for 100 years, yet they have not created anything in Kajiado. They take our resources to India and elsewhere. Are we slaves of others?” The President said the company had been exporting only natural soda ash, but had not set up any major glass or chemical factories in Kenya.
Not only this, the government has also decided to oust Tata and bring in two new companies. One company will manufacture glass here and the other will manufacture chemicals. According to Kajiado Governor Joseph Ole Lenku, Tata’s mining rights have expired in 2023.
Operations were stopped
Earlier, the Mining Ministry of Kenya had banned the functioning of Tata Chemicals Magadi Limited about 5 weeks ago. According to Mining Cabinet Secretary Hasan Joho, the company is accused of non-payment of royalty and legal liabilities. At the same time, the government has also raised issues like lack of employment opportunities for the local people.
Tata Chemicals rejected the allegations
Meanwhile, as soon as the news of President Ruto’s allegations came, the shares of Tata Chemicals fell on the Bombay Stock Exchange on Friday. Now Tata Chemicals has completely rejected these allegations of the Kenyan government. The company says that it is fully following all the necessary rules. Tata Chemicals has also submitted detailed answers to all the questions of the Ministry.
What is soda ash?
Soda ash is an important industrial chemical and is used in many industries. It is mainly used in making glass, in cleaning products like detergents, in the chemical industry and also in the manufacturing of batteries for electric vehicles. According to the US Geological Survey (USGS), Kenya is the world’s fourth largest producer of natural soda ash and accounts for about 1 percent of global production.
