Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Ali Joho.
NAIROBI, July 29 – 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 over persistent non-compliance with Kenya’s mining laws and regulatory requirements.
The suspension takes effect immediately and will remain in force until the company fully complies with the Mining Act, its Regulations and all other applicable laws governing Kenya’s mining sector, according to a statement issued by the Ministry on Wednesday.
Speaking in a statement issued in Nairobi, Joho said the decision followed years of sustained engagement between the State Department for Mining and Tata Chemicals Magadi Limited aimed at ensuring the company fulfilled its statutory obligations under the Mining Act, Cap. 306, the Mining (Licence and Permit) Regulations, 2017, the Mining (Royalty Collection and Management) Regulations, 2024, and other applicable legal frameworks.
“We have 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,” said Joho.
The Cabinet Secretary noted that despite continuous consultations between the Ministry and the company, several critical compliance concerns remained unresolved, compelling the government to take regulatory action to uphold accountability and ensure the country’s mineral resources are managed in accordance with the law.
“Despite years of engagement, several critical compliance issues remain unresolved, including outstanding royalty obligations, weak implementation of Community Development Agreements, inadequate local employment and skills transfer, insufficient value addition, and environmental compliance gaps,” he said.
According to the Ministry, the unresolved issues include outstanding royalty reconciliation and payment obligations, inadequate export reporting and reconciliation, weak implementation of Community Development Agreements, insufficient employment and skills transfer for Kenyan citizens, limited local procurement, and failure to establish a clear mineral beneficiation and value addition strategy.
Joho directed the company to submit comprehensive documentation and evidence demonstrating full compliance with all statutory obligations before it can be allowed to resume mining operations.
“The company has been directed to submit comprehensive documentation and evidence demonstrating full compliance with all statutory obligations and to address any outstanding liabilities before it can resume operations,” he said.
The Cabinet Secretary said compliance with Kenya’s mining laws is critical to ensuring that the country’s mineral resources generate maximum economic value through responsible investment, local value addition, environmental protection and equitable benefits for host communities.
“Our Ministry remains steadfast in ensuring that Kenya’s mineral resources are exploited responsibly, sustainably and in a manner that delivers maximum economic value to the country while safeguarding the environment and protecting the interests of host communities,” said Joho.
He added that the Ministry will continue enforcing compliance across the mining sector to ensure all investors operate within the law, meet their royalty obligations, support local employment, promote skills transfer, strengthen community development initiatives and protect the environment.
The Ministry maintains that mining companies operating in Kenya are required to comply with licensing conditions, honour royalty payments, implement Community Development Agreements, promote local procurement and uphold environmental standards as stipulated under the country’s mining laws and regulations.
The suspension of Tata Chemicals Magadi Limited’s mining operations will remain in effect until the Ministry is satisfied that the company has fulfilled all legal, financial, environmental and operational requirements necessary for the resumption of its activities.
