Tata Chemicals, Kenya govt agree to set up panel to resolve operations row

Tata Chemicals Ltd. has agreed to establish a high-level technical committee to facilitate the timely resolution of matters concerning its Kenyan subsidiary, Tata Chemicals Magadi Limited (TCML).

The development follows a meeting between Kenya's Cabinet Secretary for Mining, Blue Economy and Maritime Affairs and executives of Tata Chemicals Magadi Limited (TCML), Tata Chemicals' Kenyan subsidiary, on September 8.

The two sides agreed to set up the committee following what Tata Chemicals described as a “fruitful engagement” on the matters raised by the ministry.

The committee will be led by the Principal Secretary for Mining on behalf of the Kenyan ministry and the CEO of TCML on behalf of the company. It will undertake a detailed technical review of all the matters and submit a report to the office of the Cabinet Secretary for consideration and further direction, Tata Chemicals said in a regulatory filing on Wednesday, September 9.

Tata Chemicals said that the exercise is also intended to establish a sustainable framework that promotes responsible mining, value addition, community development and mutually beneficial partnerships.

Kenya operations row

The latest development comes after the Kenyan government issued a notice to TCML on July 28, 2026, relating to its operations in the country.

TCML subsequently submitted the required information, reports and documentation to the ministry on August 11 and said it was fully compliant with applicable regulatory requirements. The company said it had provided a comprehensive response to the issues raised and was awaiting a review of its submissions and further directions.

The issue came into sharper focus last week after reports said Kenyan President William Ruto had directed Tata Chemicals Magadi to cease operations in the country.

According to those reports, Ruto said Tata had held the contract for around 100 years but had not done enough to develop downstream industries, create jobs or build infrastructure.

Tata Chemicals has previously said it respects the authority of the Kenyan government and remains committed to constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters.

The company also said TCML remains an integral part of its operations and that its priority is the well-being of employees, the Magadi community and other stakeholders in Kenya.

Tata Chemicals Kenya key financials

Tata Chemicals' Kenya operations contributed around 6% of the company's total EBITDA in FY26.

TCML has an annual soda ash production capacity of around 350,000 tonnes. Soda ash is used in industries including glass manufacturing, chemicals and detergents.

Shares of Tata Chemicals are now trading 0.5% lower on Wednesday at ₹604.5. The stock is down 10% in the last one month, extending its year-to-date loss to 20%.