Tata Chemicals Magadi is embroiled in a fierce battle with the county government of Kajiado over unpaid land rates and licenses amounting to Ksh10 billion.
According to the county’s ministry of finance, Tata Chemicals has defaulted on payment of land rates dating from 2016 and has declined to commit to any payment plan despite numerous attempts to engage them.
The county leadership further says the company has been operating illegally for the last two years after it declined to pay for stipulated operational licenses.
Finance CEC Alais Kisota, who led the forceful closure of the Kajiado depot, says the county will paralyze all operations of the manufacturer to ensure it complies with revenue payment like other investors.
“We have done our best in trying to resolve the matter with Tata Chemicals. We have done what we are supposed to do as the county but the company has refused to comply. Lack of cooperation and commitment from the Soda Ash company has forced us to take drastic measures, we will close all operations involving the company. The company has been operating illegally for the last two years,’’ Kisota said.
The Soda Ash manufacturer has a key railway line largely utilized to ferry the trona to the port of Mombasa before it is exported to various markets for processing.
The railway line is also a key mode of transport for Magadi residents.
Kisota says county bad debts stand at Ksh11.9 billion with Tata Chemicals being the major defaulter.
“We are not opposed to investors because they are key in our development and employment opportunities. We just ask investors to comply with set regulations and pay revenue as required. We also have room to negotiate with investors in terms of paying revenue because we understand economic downtimes and the financial crisis facing businesses today. Some potential investors have not paid their outstanding debts but have committed to a payment plan and clearly demonstrated willingness to pay.
“Our action to halt operations in the multinational company is not ill-motivated because we also see and acknowledge that it is benefiting Kenyans across the country in matters of employment,’’ Kisota stated.
The Soda Ash manufacturer sits on a 179,374-acre piece of land in Magadi Kajiado West with an acre charged at an annual land rate of Ksh14,000.
Tata Chemicals had sought the land use renewal on March 7, 2022, after its 99-year lease expired but the county in its reply in November of the same year declined the request but the manufacturer continued with its operation.
The company is Africa’s largest Soda Ash manufacturer and leading exporter utilizing the natural growing trona.
The multinational company employs hundreds of workers and controls the economy of the remote villages of Kajiado West Sub-county.
Efforts to get a comment from Tata Chemicals were futile.
