Kenya President William Ruto Orders Tata Chemicals to Shut Down Operations After Century-Long Presence in Major Blow to Tata Group
Kenyan President William Ruto has ordered Tata Chemicals to cease its operations in Kenya, dealing a significant blow to the Tata Group company that has operated in the country for over 100 years. Ruto accused the firm of failing to invest adequately in the Kajiado region despite its long-standing presence in the East African nation.
Government Cites Lack of Investment
President Ruto made the announcement during a visit to the Kajiado region in southern Kenya. He stated that Tata Chemicals Magadi Limited held business rights in Kenya for nearly 100 years but did not set up major factories or industrial facilities there. The president claimed the local economy and people did not receive sufficient benefits from the company’s operations.
Two New Companies to Replace Tata
The Kenyan government now plans to bring two new companies to replace Tata Chemicals in the region. One firm will establish a large glass manufacturing unit in Kajiado. The second company will focus on chemical production. Tata Chemicals has not issued any immediate response to the president’s decision.
Century-Old Legacy in Kenya
Tata Chemicals Magadi Limited was established in 1911 and produces soda ash from Lake Magadi in Kenya. The company is one of Africa’s largest soda ash manufacturers and a major exporter for Kenya. The shutdown order comes at a difficult time for Tata Chemicals, which reported an 81 percent drop in net profit to Rs 60 crore in the June quarter, compared to Rs 316 crore in the same period last year.
Revenue Grows Despite Profit Fall
The company’s total revenue for the first quarter rose to Rs 4,311 crore from Rs 3,815 crore a year earlier. Tata Chemicals shares traded at Rs 641.95, up 1.27 percent from the previous session. The stock’s 52-week high stands at Rs 1,026.00 while its 52-week low is Rs 581.30.
