Tata Chemicals shares in focus after Kenya exit order - Markets | Latest News Updates

Kenya President William Ruto said on Thursday had ordered Tata Chemicals to stop its operations in Kenya, saying ‌its presence had failed to benefit the country

Tata Chemicals Ltd shares are likely to remain in focus on the Indian stock exchanges on Friday (Sep 4) after Kenyan President William Ruto ordered the company’s African subsidiary, Tata Chemicals Magadi Limited (TCML), to cease operations and leave the country.

Ruto said that the company has not provided enough benefits to the country, Reuters reported on Thursday.

The directive affects TCML’s soda ash operations in Kenya and introduces fresh regulatory and operational uncertainty for Tata Chemicals. Investors are likely to closely track the potential impact on the company’s African business and its overall consolidated financial performance.

Ruto said the Kenyan government would bring in two new companies to take over Tata Chemicals’ operations. One company would set up a large glass manufacturing plant, while another would produce chemicals in Kajiado, southern Kenya.

“We have said we will bring a new company … and they should put a big glass company here in Kajiado. And another company to make chemicals here in Kajiado,” Ruto said during a visit to the region.

Ruto said Tata had held the contract for about 100 years but had not built a factory in the area.

The development comes after the Kenyan government, in late July, ordered Tata Chemicals to suspend operations at its Magadi soda ash factory and stop exporting soda ash, Reuters reported.

The government now plans to bring in new companies to develop glass and chemical manufacturing facilities in Kajiado.

On Friday, Tata Chemicals stock closed at Rs 641.35, up 1.17 per cent on NSE.

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