Kenya's President Orders Tata Chemicals to Cease Operations

Kenya's President William Ruto has ordered Tata Chemicals to shut down its operations in the country. He stated that despite the company being present for over 100 years, the Kajiado region has not benefited adequately. The government is now planning to bring in two new companies to replace Tata Chemicals.

During a visit to the Kajiado region in southern Kenya, President Ruto said that Tata had the right to operate for about 100 years but did not establish any major factory or industrial setup in the area. He said, "Despite Tata Chemicals being in Kenya for so many years, it has not made any significant contribution to the country's development."

Ruto further said, "The government is now planning to bring two new companies to replace Tata Chemicals." He added, "The two new companies we bring here will operate locally." One of these companies will set up a large glass manufacturing unit in Kajiado, while the other will produce chemicals.

Tata Chemicals was established in 1911 and produces soda ash from Lake Magadi in Kenya. According to the company, it is one of Africa's largest soda ash producers and among Kenya's leading exporters.

However, there has been no immediate response from Tata following Ruto's statement.

In the June quarter of the current fiscal year, Tata Chemicals' net profit fell by 81 percent to ₹60 crore, compared to a profit of ₹316 crore in the same period last fiscal year. The company's total income rose to ₹4,311 crore in the first quarter, up from ₹3,815 crore in the same period last year.

Tata Chemicals' share price is ₹641.95, up 1.27 percent compared to the previous day. The 52-week low for the share was ₹581.30.