Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Ali Joho has ordered the immediate suspension of all mining operations by Tata Chemicals Magadi Limited, citing the company’s failure to comply with key legal and regulatory requirements governing Kenya’s mining sector.
The directive, issued on Wednesday July 29, halts the company’s operations until it demonstrates full compliance with the Mining Act, its accompanying regulations, and other applicable laws.
“The Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, Hassan Ali Joho, has ordered the immediate suspension of all mining operations by Tata Chemicals Magadi Limited until the company fully complies with the Mining Act, its Regulations and all other applicable laws governing Kenya’s mining sector,” the directive read in part.
According to the Ministry, the decision follows years of engagement between the State Department for Mining and Tata Chemicals Magadi over its statutory obligations. Despite repeated consultations, several compliance concerns remain unresolved.
Among the issues cited are the absence of a clear mineral beneficiation and value-addition strategy, outstanding royalty reconciliation and payment obligations, inadequate export reporting and reconciliation, weak implementation of Community Development Agreements (CDAs), insufficient plans for employment and skills transfer to Kenyan citizens, limited procurement of locally sourced goods and services, and shortcomings in environmental compliance.
The Ministry directed the company to submit comprehensive documentation demonstrating that it has met all statutory requirements and resolved any outstanding liabilities before mining operations can resume.
“The company has, therefore, been directed to submit comprehensive documentation and evidence demonstrating full compliance with all the statutory obligations and to address any outstanding liabilities before it can resume operations,” the Ministry said in the statement.
The suspension underscores the government’s renewed focus on enforcing compliance within the mining sector as part of broader efforts to maximize the economic benefits of Kenya’s mineral resources.
CS Joho reaffirmed the Ministry’s commitment to ensuring that the country’s mineral wealth is exploited responsibly and sustainably.
He said the government would continue to enforce laws aimed at promoting value addition, environmental protection, transparency in royalty payments, and equitable benefits for host communities.
The Ministry maintained that all mining companies operating in Kenya are expected to adhere fully to the country’s legal and regulatory framework, warning that non-compliance will attract enforcement action.
