Tata Chemicals shares fall after reports suggest Kenya President asks for ceasing operations

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

The latest development comes weeks after the Kenyan government ordered Tata Chemicals Magadi to suspend its mining operations and halted its soda ash exports on July 28, 2026.

In a clarification, Tata Chemicals said it had acknowledged the official communication received from Kenya’s Ministry of Mining, Blue Economy and Maritime Affairs dated July 28, 2026.

The company said Tata Chemicals Magadi Limited (TCML) submitted all the required information, reports and documentation on August 11, 2026, and is fully compliant with the applicable regulatory requirements.

TCML has provided a comprehensive response to the issues raised by the ministry and is awaiting a review of its submissions and further directions, Tata Chemicals said.

The company added that since acquiring the Magadi plant in 2005, Tata Chemicals has played an important role in the Kenyan economy and that the business continues to be an integral part of its operations.

“We respect the authority of the Government of Kenya and remain committed to constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters,” the company said.Tata Chemicals said its priority remains the well-being of its employees, the Magadi community and other stakeholders in Kenya, while continuing to contribute to the country’s economic development.

Kenya operations

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

Tata Chemicals Magadi 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 ended 1.43% higher at ₹643 on Thursday. The stock is down around 15% so far this year.